Mortgage Porting

theatrelights

I've got a £330k mortgage on a house which is worth c.£500k. Due to a new business which is not developing to plan, I'd like to downsize my house to reduce the burden on my business. The problem is that I can't get a new mortgage at present due to lack of income and the building society has said they won't allow me to port the mortgage. If things carry on I may not be able to afford mortgage payments so surely allowing me to port to a lower value house and reducing my mortgage would make sense.

Any constructive ideas would be welcome!

opinions4u

Perhaps selling up and renting would make more sense.

herbiesjp

Porting is never guaranteed

It is an option

It is treated like a brand new mortgage application, and you have to meet the lending criteria of the lender at the time you are looking to port.

If you have no income, or an income that can support that mortgage, then you will not be able to port

However porting also means carrying across the same mortgage amount, to the new property on the same T&Cs of the current mortgage.

So if the mortgage amount is the same, that will not help you.

Unless you are going to pay the penalty to reduce the mortgage (if there is one)

getmore4less

opinions4u wrote: »

Perhaps selling up and renting would make more sense.

I would agree this is the lowest risk move.

Free up £150k+ and focus on the business with a quick exit stratagy to employment if you cant make it work.

How big is the family?

tr8

Have simular issue but slight twist. We are on a base rate +0.4% tracker for life with abbey on £120k, property value over £250k company want me to move and will pay the costs, but abbey wont let me take the mortgage to the next house with no value changes, but it says in the paper work its portable.
Not hard to guess what the current rate being offered is.

getmore4less

tr8 wrote: »

Have simular issue but slight twist. We are on a base rate +0.4% tracker for life with abbey on £120k, property value over £250k company want me to move and will pay the costs, but abbey wont let me take the mortgage to the next house with no value changes, but it says in the paper work its portable.
Not hard to guess what the current rate being offered is.

Can you just borrow more than you need and buy a slightly more expensive place,

Get the new borrowing on a very short term.

theatrelights

Family consists of 4 children

Selling up at btm of market will cause loss of c.£100k compared with 2007 value. Is there any way to avoid this as banks caused loss in the first place.

opinions4u

theatrelights wrote: »

Selling up at btm of market will cause loss of c.£100k compared with 2007 value. Is there any way to avoid this as banks caused loss in the first place.

It's worth what it's worth at the point in time that you sell.

I find your question slightly bizarre! What sort of answer are you hoping for? You're in business. You bought an asset that has depreciated in value when, perhaps, you thought it would grow in value. Blame the banks, blame the Americans, blame Brown and Darling. It makes no difference - you are where you are.

It took nearly a decade for house prices to recover to their peak prior to the last recession.

Here's a link for that.

Other than mastering time travel, you can only deal with the circumstances you have now. Not two years ago.

If you can't raise a reduced mortgage to move, renting could give you exactly the foundation you need to stabilise your finances.

theatrelights

not looking to blame, just asking for innovative ideas and no need for condescension

opinions4u

theatrelights wrote: »

not looking to blame, just asking for innovative ideas and no need for condescension

I give up.

I have provided you an option. I genuinely can't see an alternative to that option for you.

But your question "Is there any way to avoid this as banks caused loss in the first place" does not really seem to be looking for innovation. It seems to hoping for divine intervention.

theatrelights

It was a poorly worded question taken out of context of the original request for ideas. I thought I would learn from others more knowledgeable than me. Thanks for your suggestion.