Port a mortgage when retired?

TLOR

Hi my mother is currently the sole name on a mortgage were the initial rate has expired and it has reverted to the SVR but still has many years to run.

She is considering changing property to something smaller but around the same price (bungalow), is it possible for her to port the mortgage given she is retired and no longer earns a salary other than her pension of course?

Cheers

ACG

It could be but it might be difficult.

Who is the lender?
How much is the mortgage?
How many years are remaining?
How much is her pension?
How old is your mother?
How much will the purchase price be approximately?
Is it on repayment or interest only?

If a port isnt possible, it might be possible to find another lender.

TLOR

ACG wrote: »

It could be but it might be difficult.

Who is the lender? Halifax
How much is the mortgage? 80k
How many years are remaining? I think over 20
How much is her pension? about £100
How old is your mother? 65
How much will the purchase price be approximately? circa 100k
Is it on repayment or interest only? interest only

If a port isnt possible, it might be possible to find another lender.

Answers above, thanks for help

ACG

How does your mum intend to pay off the mortgage?

Im not sure on halifax rules for porting. But there is certainly no chance of this being done with any other lender. I would be very surprised if halifax do allow you to port it.

The reasons being Interest only above 50% is difficult - more so if there is no repayment vehicle in place. But the income just isnt enough to support the mortgage.

Simon_gloster

There is no way the will go through, broker or direct.

SVR not portable thru them, if they honoured the ordinal t&c's in int only (as a debt for debt purchase) and term its kicked out if bed on affordability. Maximum lending back would be £0 even though she has a mortgage with them.

As op says the mortgage was originally agreed whilst employed, circumstances have changed so a re evaluation I'd needed.

holly_hobby

You may apply to port the mortgage rate (ie fixed, disc, etc) NOT the borrowings it applies to !

I am assuming you really mean she wants to tsf the mge from one property to another (which unfortunately as you now know, isn't possible), rather than merely transfer her SVR rate (which isn't a portable product).

How porting works, is the new house will bring a new mge and new mge application, which is subject to full underwriting and status/affordability checks of the applicant on their current age, income, credit history etc.

Once they have passed the lenders status checks, they may agree to port an existing product (ie fixed, tracker, discount, etc), but it is at their complete discrection even if the individual has met the status requirements.

Mum would need to have a prelimary chat with Halifax to see if her pension and any other income, is both suitable and sufficient for her requirements ..... seeing as she is currently out of product and on SVR, she may of course also choose a product from their current portfolio.

An appointment (take all proof of income) and chat with them will bottom this out.

Hope this helps

Holly

TLOR

Thanks everyone for the replies, my father who'm she still lives with still works and has a pension but I'm guessing this wouldn't help as the property isn't in his name (and they can't change that as he has debt issues).

Cheers