Downsizing and porting mortgage Halifax...help!

loula11

hi there,

I'm trying to downsize to release some of the capital in my home. I've been told that my mortgage is portable but when I spoke to Halifax today the woman said they'd have to go through an affordability application!

I'm selling to release money to pay off a credit card and one of three loans.
Does anyone have experience of the process? I'm scared they'll say 'actually, no, you can't have more than X amount...'trapping me and stopping a downsize. I've never missed or been late on a payment. Looking to sell at £140k and buy at £100k (aware I'll need 10%)

As a ps - I'm also newly married and would like to have hubby on mortgage as our earnings are now combined..

CONFUSED AND WORRIED!

koexelek

Although you can port your current deal, the Halifax will underwrite it as though it was a whole new application.

loula11

I'm sorry, I've got a real block on what that could mean?

maninthestreet

loula11 wrote: »

I'm sorry, I've got a real block on what that could mean?

Basically, Halifax will assess you as if you're applying for a new mortgage, which is the case here - you are selling one property and buying another at the same time.

herbiesjp

Please remember there are no guarantees that a lender will agree to porting.

When you port, you do so on the same terms and condition i.e. rate and mortgage amount.

So by reducing the mortgage amount you may incur penalties - double check this will the lender

Conrad

It looks as if you want 90% loan to value this time. If your existing deal was based on a ltv lower than this (say 75%), then it is unlikely you will be able to port the old rate terms accross because 90% is a higher risk application.

beecher

What rate are your presently paying? An option is to pay any Early Repayment Charge and to get a 90% deal either with the Halifax, or elsewhere.