We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Porting a mortgage

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

Comments

  • hostman
    hostman Posts: 377 Forumite
    Hi,

    What would you sell the house for?
  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    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.
  • 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_
    _Andy_ Posts: 11,150 Forumite
    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.
  • 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_
    _Andy_ Posts: 11,150 Forumite
    mart - welcome to MSE :)

    Which lender is it?
  • Hi Andy, the lender is Mortgage Express.
  • 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.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.8K Banking & Borrowing
  • 253.4K Reduce Debt & Boost Income
  • 454K Spending & Discounts
  • 244.7K Work, Benefits & Business
  • 600.2K Mortgages, Homes & Bills
  • 177.3K Life & Family
  • 258.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.