Porting a mortgage

daveyboy66

Hi all,

I've just read a previous thread re porting a mortgage when wanting a larger mortgage.

Are there benefits in porting when wanting to downsize. We currently owe 119k plus a further 25k on a secure loan. The house sale will prob cover mortgage and we're wanting to buy between 80-90k.

What options would be best to make the sums add up.

Thanks in advance

hostman

Hi,

What would you sell the house for?

_Andy_

How do you intend to pay off the secured loan?
It's not clear if you will have any deposit to put down on the new property.

daveyboy66

Price or reason?

Price - Value is prob 130k at present

Reason - Reduce our outgoings for a few years and get back on our feet.

Best wishes

_Andy_

Just to clarify then, you won't have a deposit for the new property, being that you owe more than your home is worth at the moment?
If this is the case you won't be able to port the mortgage at all as, with no deposit, you won't meet your lender's (or indeed, any lender's) lending criteria.

mart777

I was hoping to do something similiar: Property would get around £225k, mortgage is £200k. Was based around 90% LTV at the time. Being naive, I assumed my mortgage company - now owned by the taxpayer - would want me to get my mortgage reduced, therefore reducing potential taxpayer liability if it goes pear-shaped.
Anyway, I've been waiting since July for the porting details - another promised call today hasn't materialised - so any advice or info would be appreciated.

_Andy_

mart - welcome to MSE

Which lender is it?

mart777

Hi Andy, the lender is Mortgage Express.

mart777

Finally heard from Mortgage Express.

The mortgage itself is NOT portable, but the mortgage rate IS.

As I'm currently on a rate 2% above BOE rate [ fix expired 31/12/08], this would mean a new 4.29% 'fix' [with penalties], an arrangement fee between £350 - £650 excluding legal costs &/or FA fees. Equity level would need to be the same or higher on the new property and the same LTV. All this is subject to me meeting their new 'lending' criteria.

So even though I was looking to reduce my mortgage amount and the monthly repayment, the figures just don't work for me.

What really annoys me about this, is that I had an offer of £235k on the property in December, but they wouldn't budge on the £11750 redemption penalty which was due to expire on the 31st anyway.

I think I'll just wait it out until they pay me to go away elsewhere.