Penalties for ending mortgage ?

louiserer

Evening,

Is it common to have an early termination fee in a mortgage? If you wanted to move house from a 3 yr halifax after about half the term into another Halifax mortgage could the fee be quite large?

Thank you,

Louise

ACG

Ask them if you can port the mortgage.

louiserer

ACG wrote: »

Ask them if you can port the mortgage.

Thank you for your reply,

What does porting a mortgage mean?

The mortgage we have now is 97k on a house worth maybe 180k. The one we're looking at is 270k and looking to put down min 50k of the equity.

ACG

It means you transfer the deal you have from your current property to the new one.
If you want any additional borrowing you would have to take out a different deal with the same lender for that portion so you would have 2 parts to your mortgage (although just 1 DD).

If you want to reduce your mortgage then you would only pay ERCs on that part.

Although you are keeping your deal, it is treated like a new application so you still have to apply and meet the lenders current criteria.