Is it easy to port your mortgage?

househunter123

Hi,

I'm looking to move to a larger house and as this is the first time I've moved home, I'm not sure of the best process!

Can I just increase the amount on my existing mortgage (obviously subject to credit check) and take it with me to my new home? I've checked that my current mortgage is portable.

Unfortunately I have only been in my current home a couple of years, so only have about 10% equity in my property at the most. I have been offered part exchange on a new build and would like to bring my partner on to my mortgage, (a first time buyer), so we are buying the new property together. The amount we would like to add to my current mortgage is well within our budget.

This seems pretty straight forward to me but I'm concerned we will have to find a deposit. Is this the case if we are simply increasing the amount on my current mortgage? If that is indeed the case, I can't see any reason for staying with my current lender and should look at what other deals are available. My fixed rate recently came to an end so I'm not tied in to my current mortgage.

The reason for wanting to stay with my current lender is not having to find yet another deposit... if I had to move lenders and get a completely new mortgage, we could probably only just manage to get 10% together, given the lack of equity in my current place. I know finding a 10% mortgage is pretty tricky in today's market!

Any guidance would be much appreciated. As I say, I've been through the process as a first time buyer but being a home mover is completely new!

Thanks.

_Andy_

The main issue will be the deposit - you need to speak to your lender to ask if they will accept just 10% on a new build.
As well as the deposit, have you got enough to cover legal fees (for sale and purchase), stamp stuty, valuation fee and estate agents fees?

madison-nyc

we're currently selling our house and when we port the mortgage we will need to put 15% deposit down , this is with the woolwich. We're tied in on a fixed rate with a big redemption penalty so can't shop around. So as the previous poster said check with your lender first , also if you increase your mortgage there may well be an additional set up fee for the extra money you take.

Mrs_Bumble

What is the part exchange value?
Balance of the existing mortgage?
Value of new build?

Max LTV for a new build house with most lenders is between 80-85% so don't really see how you will do this without having some funds?

Lainey25

We are in a similar situation, where we have, only about £10k savings and 7 months left on a fixed rate mortgage. We managed to get one of the last 100% mortgages, so we have to wait until we have either built up equity in our property (we are about even now as to what we borrowed to what the property is worth, in the current market), or we have to come up with 15% deposit...even though we would be looking to borrow £200K this time instead of £213k!

Given we only have a few months to wait we've decided to do that, in the hope that we will have built even more equity and equally paid off more of the mortgage itself.

Don't know if this helps, but I do understand where you are!