Porting mortgage - Interest

mattwilson1981

Hi guys, just wondered if anyone has any information on this situation.

We are in the process of buying a new house but because we are 2 years off our early redemption period ending we are subject to a £3030 fee if we were to leave Halifax, and no other bank/bs can offer an interest rate over 2 years to save us £3030 so we are porting our mortgage to the new property.

Our mortgage balance was £71,059 up until a few days ago and the interest on our account has been applied giving us a mortgage balance of £74,000 this has now become our redemption figure.

Our finances were planned so that from our equity and savings we would be paying
approx £4K solicitors fees for buying/selling/stamp duty etc
£1620 estate agent fees
£17000 deposit

and we were hoping to have approx £4.5K cash remaining and this means that we will have around £1.5K cash. Is there any way that as we started the mortgage offer process before interest was applied that the original figure of £71,059 could be taken across so we can keep the extra cash (this is a ported mortgage afterall), and then interest applied on the new final mortgage price which we will then be paying?

I think I just loathe the idea of paying them an extra £3K cash when I'm already going to be paying off a mortgage for the rest of my working life, and I'm going to need that holiday.

Thanks
Matt

holly_hobby

Porting an interest rate is dependant upon you satisfying all lender status checks in connection with the total borrowing on your new property purchase.

Porting an interest rate relates to the remaining balance held under the said rate at the time of redemption (subject to max LTVs), with any additional borrowing secured on a product selected from the lenders current portfolio.

Hope this helps

Holly

kingstreet

mattwilson1981 wrote: »

Hi guys, just wondered if anyone has any information on this situation.

We are in the process of buying a new house but because we are 2 years off our early redemption period ending we are subject to a £3030 fee if we were to leave Halifax, and no other bank/bs can offer an interest rate over 2 years to save us £3030 so we are porting our mortgage to the new property.

Our mortgage balance was £71,059 up until a few days ago and the interest on our account has been applied giving us a mortgage balance of £74,000 this has now become our redemption figure.

Our finances were planned so that from our equity and savings we would be paying
approx £4K solicitors fees for buying/selling/stamp duty etc
£1620 estate agent fees
£17000 deposit

and we were hoping to have approx £4.5K cash remaining and this means that we will have around £1.5K cash. Is there any way that as we started the mortgage offer process before interest was applied that the original figure of £71,059 could be taken across so we can keep the extra cash (this is a ported mortgage afterall), and then interest applied on the new final mortgage price which we will then be paying?

I think I just loathe the idea of paying them an extra £3K cash when I'm already going to be paying off a mortgage for the rest of my working life, and I'm going to need that holiday.

Thanks
Matt

It sounds like the porting hasn't been set up properly. AFAIK a port done on a same day completion doesn't involve the early repayment penalty at all. Are you selling and buying on the same day?

Does your mortgage offer show the ported portion and the extra borrowing separately in section four on page three? Does it match the key facts illustration you got when you applied?

alexlyne

Halifax messed up when we moved/ported, and charged us the ERC at the time. All it took was a phonecall to get it refunded.