Mortgage Help

Boom_Boom

I would like some advice from someone in the know.We currently have a mortgage with Mortgage Express and as you know they are shrinking their mortage book, we are in a deal for a couple more years and then they have said they won't renew.What will happen after this? We can't get another deal elsewhere at the moment because our situation as changed and my parter is on materinity leave and we have a couple of defaults and don't have 25% deposit.I just wondered what happened after the fixed deal was up - please don't talk in jargon/acronyms as I won't understand.Also, I understand that there is an option to port a mortgage to another propery, can someone advise exactly what is involved with this?Thanks

unite79

The good news Boom Boom, is that MOST mortgage express deals revert to about 1.25% over Base, So you will see your payment go down - assuming rates remain where they are now, ie very low.

Boom_Boom

Thanks for the reply.So at the end of the deal, we will just pay whatever the gointg rate is?So, there is no chance that Mortgage express just turn around and say find another deal or give us our money back?

Robert_Sterling_3

Your terms and conditions will state what happens after your fixed deal is over. Your contract may be for 25 years.

Boom_Boom

What about porting a mortage - how does this work?

Leon_W

Porting a mortgage is not as straight forward as people seem to think.

It is generally the case that you have to meet the lenders criteria AT THE TIME. Which in a roundabout way means that any application to port a mortgage is treated in exactly the same way as a new mortgage application. Therefore income has to be checked, and the property would still have to meet the minimum Loan to Value requirements, and as you now have a couple of defaults, unless the lenders criteria allows for them, these would pose a problem too.

Hope this helps.

herbiesjp

Porting a mortgage is only used if you are selling your current place and want to keep you current mortgage deal on your new property

Boom_Boom

Leon_W wrote: »

Porting a mortgage is not as straight forward as people seem to think.

It is generally the case that you have to meet the lenders criteria AT THE TIME. Which in a roundabout way means that any application to port a mortgage is treated in exactly the same way as a new mortgage application. Therefore income has to be checked, and the property would still have to meet the minimum Loan to Value requirements, and as you now have a couple of defaults, unless the lenders criteria allows for them, these would pose a problem too.

Hope this helps.

It confirms what I thought. It seems daft to me. They not giving you anymore money and if you have been meeting payments I can't see why all the red tape.