Porting a mortgage and downsizing

JimmyTheWig

Hi,

We're thinking of moving.
Mortgage (with Santander) is within a deal period, but would be happy to port it.

I understand that you can only port a mortgage if the mortgage company, in effect, agree to the new application.
I understand that if you want to borrow more money to buy a bigger place it has to be on a seperate deal, with the same company.

But what's the deal if you want to move to a smaller place? Or a cheaper part of the country?
We could reduce our mortgage, and decrease our LTV, but presumably would be liable for ERCs if decreasing by more than 10%?
Or we could keep the mortgage balance the same, which would increase our LTV. Would the increased LTV affect the mortgage company's decision to allow the port or not?
The deal we are currently on was offered when our last deal came to an end. There was no talk when it was offered about it being for a particular LTV. So it's not easy to say that we wouldn't be able to port the mortgage if we went above the limit LTV for the mortgage deal.

Just a little confused about the whole thing.
Strikes me that it will be easiest if we can buy a property for the same price that we sell this place for!

Any thoughts, anyone?


Thanks,

Jim

R_P_W

You could ask Santander?

JimmyTheWig

I could do, R P W, couldn't I. I could ask Santander.
Alternatively, I don't live far from Chessington World of Adventures. I could pop down there and see if anyone in the monkey enclosure had any suggestions.

Or I could ask the people on here who actually know what they are talking about.

Thrugelmir

JimmyTheWig wrote: »

Or I could ask the people on here who actually know what they are talking about.

Much will depend on your proposal.

As a higher LTV will change Santanders' underwriting criteria even if the amount borrowed is lower.

If you are looking to release equity to repay debt then this may influence their decision.

JimmyTheWig

Thrugelmir wrote: »

If you are looking to release equity to repay debt then this may influence their decision.

Not at all.
Would like to use equity to pay for the costs of moving, but other than that would want to keep the equity the same if possible.
Only reason I can see not to do that is if we would be slapped with ERCs for reducing the mortgage balance.