Porting a Mortgage

chimmychango

Hi All,

Was just wondering about Mortgage Porting. When you sign up to a mortgage that has Porting Capabilities, is there generally a limit to the number of times that it can be ported form one house to the next, within lets say; the mortgages "2 Year Fixed rate Period"?
Could i for example port it more than once within this time frame?

My motives are that i was thinking of buying a house, renovating it and selling it. I currently work for an employer within the construction industry and i am qualified in plumbing, gas, electrics and carpentry. I can also plaster, although not qualified. I have seen a few cheap houses around my area of which i would have roughly 50% deposit to put down. Although the houses are not selling as quickly as they used to, i feel that i can still make it worth my while and make a profit, due to doing most of the work myself, as a part time venture.

I am not a home owner at the moment, as i am currently renting somewhere. So therefore wanted to get a mortgage on a place, renovate it, sell it and then port the mortgage onto the next potential house renovation.

Is this at all feasible or would the banks knock this back in an instant?

All comments welcome

Thankyou

holly_hobby

The property would have to be mortgageable in the first place.

With regards to porting the mge rate, this is at the discrection of the lender, and they may refuse your application.

I would suggest frequent moves (ie less than 12 mths as a minimum) would raise suspicions that the residential mge you have (with the rate you wish to port to a new residential property), should actually have been commercial finance - as it will be obvious that you are effectively conducting a property development business (evidenced by buying and selling in quick succession/more regularly, than you would reasonably expect to see with someone buying a true main residence), and obv purely to generate a profit as a main or supplementary income - and a such, you should be aware that you are liable to income tax on any profit.

Hope this helps

Holly

chimmychango

Thanks Holly Hobby.