Mortgage porting - how does it work ?

mcrewe

Hi we are in the early stages of moving home (our house on market & looking for new one) In moving we are upscaling from 140k property to £220k. Our mortgage is for £80k with a&l and is portable, we are not increasing the amount of the mortgage simply transfering it to new property. What do we need to do with regard to a&l, are funds transferred back to a&l upon sale & then re-drawn at purchase or will my buyers funds simply go straight to me for transfer to my new seller ??
Also if we do not buy imediatly as we may stay with inlaws for a while between sale & purchase.

feisty1

• The Repayment Charge will not be charged if the borrower immediately transfers their existing fixed/capped or discounted rate borrowing to the new property for the remainder of the fixed/capped or discounted rate period.

Check criteria on 0844 800 0080

Dan_1976

I cant remember the period with A&L but most lenders give 3-6 months to complete from redemptionof your original loan. You will be charged the redemption fee and then refunded if you take the mortgage out again within the period set. It has to be on the same conditions. Call them, I would.

mcrewe

More complications to add. When we took our current mortgage out I was in full time employment. I went self employed about 18mts ago & neglected to inform a&l, mortgage has been left in place & always paid with no issues. However now that we are selling & moving I have meeting with a&l to discuss porting but have a feeling I will get screwed on rates because of self employment, also worried that they may hit me with massive charge because of the fact that I neglected to inform them.
Advice please !!

feisty1

Quote: "Advice please !!"

advice on what? you have an appointment with them??

silvercar

I wouldn't worry about not informing them. There is no obligation to inform lenders about your employment situation once you have taken out a mortgage.

Your new mortgage will be based on current lending criteria. If they give you the mortgage they will allow you to keep the same deal you already have. That is what porting means.

mcrewe

Really hope you're right on that one silvercar, my concern is that I am forced to do a self cert and also get hit with backdated higher rate interest due to not mentionong it at the time (don't know if they can do this or not ??)

Thanks

silvercar

The only time I have heard of the threat of back dating interest rates is when people have let out a property that the lender thought they still lived in. Changing career is not something you would phone a lender to notify.

mcrewe

Many thanks for your sound advice silvercar. Used a mortgage advisor (cost me nothing) and have had mortgage offfer from A&L at same rate as previously on, currently 1.75% and no arrangement fee !! RESULT!!!