Need to relocate and prob buy much lower-value property; have flexi portable mortgage

heyup_2

Hey Folks,

Grateful for any advice. My current house should sell for 250k (ish) and I have a flexible, portable mortgage of 175k. I need to relocate but I can get what I need house-wise in the area I'm moving to for in the region of £115 - £130k.

I don't want to pay off my existing mortgage and look for a new lender as my current mortgage terms are favourable. I haven't approached my existing lender yet because I'm likely to put my house up for sale in Jan/Feb at the earliest.

Say I find my ideal new pad for £120k purchase cost. How does that work when it comes to 'porting' my existing mortgage? What is my lender likely to say to me when I describe my position? I don't want to come across as totally green, so your expertise would be most appreciated.

Thanks!

Tuscan

Porting questions come up a lot on here, from what i can tell you will have to pass the present lending criteria of you mortgage provider, such as if you have picked up any bad credit since taking out the last mortgage this may effect them allowing you to port although it wont effect your current mortgage with them, also the loan to value (LTV) will come into it, for instance if you currently have a 50 percent LTV and when you move you may have a smaller deposit on the new house so pose a greater risk to the lender, although as your down grading then you will have a huge deposit so that shouldnt be a problem.


in short porting is treated as a new application but with the same terms/rate as you currently have...

Conrad

Yes that's right it will be as if you were a new applicant, afterall you could be a drug addict tramp now for all they know.

The new job issue needs exploring as many lenders need applicants to have been in job for a minimum period and or without a PROBATIONARY period applying.

Furthermore a new job will reduce the credit score.

So before you go any further check those points with great care. Worth keeping in mind call centre staff often give out duff info!