Porting mortgage

baggyjim

I currently have a lifetime tracker mortgage with Woolwich which is + 0.14 % above base rate = 0.64%, which obviously I want to keep.
The mortgage is portable and originally was for £130k, I have overpaid on this and I currently now owe 86k.
When we sell our current property (250k), and purchase our new property (300-350k) will the ported part of new mortgage be the original £130k or what is outstanding , 86k ?

Jimbo1976

You can port (subject to Barclays/Woolwich current underwriting criteria) what is outstanding and then you would need to top up the borrowing with a new rate

holly_hobby

You DO NOT port the original (or even remaining) mge borrowing itself, but the rate that applies to it (which is at the lenders discretion), with the full amount of your new mge being subject to full underwriting as a new application.

So, if your port request is agreed by the lender, your new mge will have an amount equal to the current 86K placed on the lifetime tracker(+0.14%), with the remainder of your new mge borrowings on a product chosen from their current portfolio.

Hope this helps

Holly

Dual

Baggyjim

Im just doing this with woolwich - we also have a tracker - brilliant rate so obviously want to port it across to my new borrowing as Im just in the process of moving house - They have agreed to port it no probs in fact the mortgage adviser encouraged us to do so as paying it off then taking out the whole new amount would have cost us alot more. Im porting over the balance of £68k - then the additional borrowing at a new rate.

You also get a preferential rate if you pay at least £800 per month for at least the previous 3 months into your barclays account - so we did this in the run up to doing the mortgage paperwork to ensure we qualified.

holly_hobby

The original borrowing itself is not transferred over, only the product rate (fixed,discount, tracker, whatever) - which will apply to an equal amount of your new borrowings (with the residue placed on a product chosen from their current range).

Holly

jackomdj

Funny how you get different views!

Look at your original t&c's. we are with C&G. When we moved our old mortgage had terms such that we could port out rate over to a new mortgage and we were able to increase the amount borrowed AND the term all at the original rate.

Dual

Yes we increased the term too - made the payments smaller! lol

kingstreet

Often, you can take the new mortgage over a different term. However, most lenders won't allow the whole mortgage on the old rate, not if the new mortgage is bigger than the old one.

If you have a product/lender which can/does, all the better.

jackomdj

kingstreet wrote: »

Often, you can take the new mortgage over a different term. However, most lenders won't allow the whole mortgage on the old rate, not if the new mortgage is bigger than the old one.

If you have a product/lender which can/does, all the better.

Even the bank mortgage lady thought it was a great product.

Offset, 0.75% above BOE, went from about £75k to £250k, and back up to 25 years, also no redemption fees so if base rate increases we can move it. :T

kingstreet

Yep.

As I said, there are odd lenders and products out there where you can increase your borrowing on the old rate when you port to a new mortgage. I guess there must be something in the old terms and conditions which permits it.

holly_hobby

Thats great for you ... but is more of an exception to the typical industry rule of thumb, which is any additional borrowing to that on which the ported rate will apply, is on a new product from their current portfolio (unless of course they were still offering the 0.75% loading in the range at the time of app).

Anyhoo, well done, that certainly was a job well done !

Holly