Porting a mortgage

soulbinder

hi,

just a quick question, i wonder if anyone can clarify exactly what is porting? i undertsand its transferring your current mortgage deal to a new property, to be more specfic for eg my current mortgage 68k outstanding i want to purchase a 100k property if i port my current mortgage deal does that mean a) i borrow extra 100k ontop of 68k or b) i borrow the difference between two properties (32k extra)?

thanx in advance.

beecher

If you want to purchase a 100k property, you need at least a deposit of at least 10% as there are no 100% mortgages. So you could (subject to lending criteria) port over the 68k, and borrow an additional 22k but will have to come up with 10k yourself.

ankspon

I have just ported my mortgage,you pay the diference between the properties.You don't need a deposit as you already have equity in your property

beecher

davidhwdn wrote: »

I have just ported my mortgage,you pay the diference between the properties.You don't need a deposit as you already have equity in your property

That's a bit of an assumption as the OP has not stated anything regarding their house value. If the OP makes at least £10k on the sale of their house then they'd be fine (subject to lending criteria/salary multiples/credit checks), but it is not accurate to say that they dont' need a deposit.

getmore4less

Porting allows you to keep the terms of your existing loan on a new loan on another property up to the outstanding amount of the current loan.

You redeam the old mortgage and get a new one.

If the amount you want to borrow is less than the curent debt then any penalties on the current deal may kick in.

If you want to borrow more this will usualy be on new terms from the lenders current offerings, for small amounts this can be expensive if there are any fees.

The new total lending will usualy need to comply with any conditions the lender applies to income multiples and Loan to value, so for most people this means a deposit from existing equity or cash and income to support the loan.

Most lenders will not allow LTV to drop below certain thresholds so a lot are in equity traps even with portable loans