Porting Mortage advice

BecH

Im currently unemployed, after working for 25 years in a good job, and was looking to move to reduce my mortgage commitment so I can take a lower paid job. Ive sold (STC) my house and will have 85k equity but need to port 70k of my existing mortgage (was 135k) to find anywhere decent for me and my kids to live. Getting a local job which would cover my living expenses/mortgage wouldnt then be a problem.

On talking to my mortgage provider they tell me that I cant port it over as Im unemployed. They'd rather wait and repossess my house. I have insurance in place for 12 months which more than covers my mortgage now (and the gov will then cover it until my youngest is 7 - not that I intend to wait that long.) plus what I currently receive in Child tax credits etc will cover what I will take over. I have an endowment which pays out in 5 years which will reduce the ported amount down to 30k. Even if I find a job tomorrow they say I cant move it as I'd need to be in the job 12 months.:mad:

Is there anything I can do to get the Woolich to see sense? I'll be reducing their potential liability. Help.

Wh05apk

Sorry to say, that unless you have provable income now, they will not give you another mortgage, some lenders will accept tax credits etc, but only as a top-up and not the main source of income.

I think all you can do is stay put for now, if/when you receive a job offer, they should then accept that as income, even if you have not started yet.

Yorkie1

Porting a mortgage isn't actually transferring the mortgage over. You sell your old house, redeem that mortgage, and apply for a new mortgage on the new house.

If you meet the lending criteria for that new mortgage, then you can take your old interest rate on the amount of the old mortgage, and top up the rest of the new mortgage on a new interest rate.

So, if you don't meet the new lending criteria, you can't port the mortgage rate because you won't be granted a new mortgage.

Thrugelmir

Sell and rent. Until such time as you are in a position to afford a mortgage. You've the benefit of the endowment policy in a few years time so all is not lost.