Porting an Intelligent Finance Mortgage + Bridging Loan

hdpete_2

hi,

I have a lifetime baserate +.25 80% tracker with IF.com.

we have just found our dream house and I know that IF will allow me to borrow the amount that I need from previous conversations.

However, as we don't have a buyer for our house at present, there is a high chance that we'll lose the house that we've found. The amount outstanding is circa. £90k, so if I were to get a bridging loan from my friendly bank manager, does anyone know whether the IF product is portable without selling the current property first? i.e. it can be sold in slower time, but we still get the opportunity on the new house?

Another option is, in my view, to have the single IF product 'Jar' but it has a charge over the two properties. That way we could keep the first and rent it out. IF say that they don't do second mortgages, but this would be a single mortgage, but on two properties - if that makes sense.

Affordability isn't an issue (they've previously agreed to a much higher lend amount), but does anyone know whether either the product can be extended to two properties, or how the porting works?

Cheers
Pete

Thrugelmir

"Porting" is merely the transfer of your existing mortgage under the same terms and conditions. Though will be subject to current underwriting criteria.

If you do not sell your existing property do you have sufficient savings to fund the purchase?

A bridging loan could cost around 1% a month in interest plus an arrangement fee so is not an option to be considered lightly. Particularly if there is no buyer on the horizon.

hdpete_2

Is it a condition of porting that the house must be sold, or the product balance must be zero?

We don't have funds to complete the purchase ourselves, hence we need to port the product terms (i.e. keep the favourable rate and terms) and then borrow under those terms - which I have been told recently is 75% LTV at BOE + .25%.

A bridging loan to clear the current balance to zero - or any clever ideas you guys may have - would only be temporary whilst we find a seller.

Thrugelmir

You need to find a buyer for your current property before moving forward. So need to focus on that issue first. Reducing the selling price may be a cheaper option than funding a bridging loan for an extended period.

opinions4u

As I understand it you can't port a mortgage that you want to keep on the existing property. Ring IF and I'm sure you'll get that confirmed.

we have just found our dream house

Take emotion away from this transaction if you can. Emotion will cost you money. Take a step back. "Dream House" is a phrase I've heard many times. Yet there will often be numberous similar properties and some of these will hit the market from time to time. In other words, if this one doesn't happen the next one might be better.

I've seen too many people buy their "dream house" to discover the place is full of faults that they didn't notice because they were blinded by the joy of how wonderful it seemed before they'd mortgaged themselves up to the eyeballs.

Good luck!