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  • FIRST POST
    • Makkusu
    • By Makkusu 9th Sep 17, 9:54 AM
    • 86Posts
    • 13Thanks
    Makkusu
    Porting mortgage advice
    • #1
    • 9th Sep 17, 9:54 AM
    Porting mortgage advice 9th Sep 17 at 9:54 AM
    We're looking to move out of our first home, currently we're on the HTB scheme and have no dependents. As we're on the HTB scheme we have to apply for a new mortgage which is fine as our income has significantly increased since we brought our first home.

    If someone can advise on the below I'd be really grateful.

    We're concerned that if we move home and then have children, my partners salary would be nearly non-existent and as we'd like more than one child if we have to move house again in the next 5-10 years would we have to apply for a new mortgage again, using only the one salary (and obviously borrowing a lot less).

    Are we able to effectively take the existing mortgage with us for future purchases, despite our household income dropping from say £60k to £40k?

    I think it's called porting a mortgage but the more I read the more I seem unsure whether it's possible.

    What we want to avoid is being stuck in our next home because our salary has dropped and not having the extra 1-2 bedrooms!
Page 1
    • amnblog
    • By amnblog 9th Sep 17, 10:09 AM
    • 9,749 Posts
    • 3,765 Thanks
    amnblog
    • #2
    • 9th Sep 17, 10:09 AM
    • #2
    • 9th Sep 17, 10:09 AM
    You need to be clear here.

    You CANNOT TAKE A MORTGAGE with you when you move home.

    Each mortgage application as you move property will need to be re-underwritten based on your situation at the time.

    PORTING is a facility to KEEP YOUR PRODUCT and take it to the new home avoiding an early redemption penalty.

    As regards your query about being stuck if salary drops with expanding family. You should not be borrowing what you cannot afford, If your income will drop you need to allow for that.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Makkusu
    • By Makkusu 9th Sep 17, 10:38 AM
    • 86 Posts
    • 13 Thanks
    Makkusu
    • #3
    • 9th Sep 17, 10:38 AM
    • #3
    • 9th Sep 17, 10:38 AM
    You need to be clear here.

    You CANNOT TAKE A MORTGAGE with you when you move home.

    Each mortgage application as you move property will need to be re-underwritten based on your situation at the time.

    PORTING is a facility to KEEP YOUR PRODUCT and take it to the new home avoiding an early redemption penalty.

    As regards your query about being stuck if salary drops with expanding family. You should not be borrowing what you cannot afford, If your income will drop you need to allow for that.
    Originally posted by amnblog
    Sure - thanks for clarifying. Was not aware of that at all.

    We're borrowing well within means it's just if we wanted to upsize and had the one salary that's all.

    As my salary is about 80% of our income it wouldn't hurt us if my partner dropped her job, we put all hers and a little extra into savings at the moment.

    Thanks though!

    EDIT: Does the lender not take into account current affordability, so say if we were overpaying our mortgage by £300 per month then applied for a new mortgage... would they really then say they'll lend us £67,000 less because that's the 4.5x my partners salary for example? What if I have significant savings also?
    Last edited by Makkusu; 09-09-2017 at 10:45 AM.
    • amnblog
    • By amnblog 9th Sep 17, 11:30 AM
    • 9,749 Posts
    • 3,765 Thanks
    amnblog
    • #4
    • 9th Sep 17, 11:30 AM
    • #4
    • 9th Sep 17, 11:30 AM
    The regulator requires them to stick the the criteria they have set.

    If there were a 4.5 X earning limit in criteria that would stand whatever.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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