Porting mortgage

marrbett

We are about to drop from a fixed 5.79% to the svr of about 2.5%(Hurrah!!). We intend to do some overpaying as our endowment is promising quite a shortfall!!
We are able to port our mortgage, but if we move, can we stay on the low svr or will we have to move to the higher one?Its with C&G.

kingstreet

Porting is the ability to move your rate from an old mortgage to a new mortgage with the same lender when you move house.

You first need to check you can port SVR with C&G. Some lenders will allow it, some won't. It will be whichever SVR your mortgage follows onto, when your fix expires. This depends on when you took out your mortgage. IIRC anything over two years old rolls onto the 2.5% SVR.

If they will allow it, you'll apply for a new mortgage with them. If you are increasing the amount, the first part will be on the SVR, the extra money will be offered on whatever new C&G product you prefer. You'll have two sub accounts making up your mortgage, one for the SVR, the other for the new bit.

You have to satisfy the lender's status, loan to value and affordability criteria.

marrbett

Thankyou Kingstreet, that's very helpful. We've been on a fixed rate for 5 years, so have been paying lots more than we needed to for years, so it'll be nice to finally benefit from the low rates.

I will check with C&G about porting it with the low SVR I think, it might make the difference between being able to move or not,in terms of affordability. Although, with all the tax credit upheavals coming up in the next year or two, I'm not sure if C&G will allow any TCs towards income.....so will have to ponder abit longer...
Thanks again.

Thrugelmir

marrbett wrote: »

I will check with C&G about porting it with the low SVR I think, it might make the difference between being able to move or not,in terms of affordability.

Don't base your decision on interest rates remaining low.

If affordability is an issue. Then use the opportunity to seriously reduce your current mortgage levels. Far easier to repay debt when rates are low rather than high.

With interest rates rising across the board. Wouldn't be a surprise if porting with very low rates was made very difficult by the lenders.

Simon_gloster

marrbett wrote: »

Thankyou Kingstreet, that's very helpful. We've been on a fixed rate for 5 years, so have been paying lots more than we needed to for years, so it'll be nice to finally benefit from the low rates.

I will check with C&G about porting it with the low SVR I think, it might make the difference between being able to move or not,in terms of affordability. Although, with all the tax credit upheavals coming up in the next year or two, I'm not sure if C&G will allow any TCs towards income.....so will have to ponder abit longer...
Thanks again.

I understand from mate ag C&G that if yuor account number starts with 50,30,77 then you'll lose your SVR if you port as you'll move onto new terms & conds, therefore HVR @3.99%.
She also says they are red hot on any existing or new interest only lending and that state benefits they dont use all the amount you get.

Very different from 5 years ago so be prepared for words you may not want to hear.