Porting my mortgage - help needed!!

Satchell's

We are trying to sort out a mortgage at the moment and our best bet we have been told is to "port" our current mortgage with Gmac as we have a £5000 penalatly if we leave them before next April (2006). We need to borrow an additional £20000 from somewhere. Firstly - HOW do we "Port" our mortgage? Secondly, what is the best way to raise the £20000 - personal loan, or secured? Ideally, we want to borrow the extra £20k on a NO PENALTY for early redemption as we want to get a complete new mortgage at a better rate next April (we are paying 8.75% at the moment)...

PLEASE HELP ME!!!

payless

Are you moving house ?- sorry if obvious, but thats the only reason to"port a deal"

If moving - have you checked
1. Rate savings against aying penalty (are you on a loaded rate?)

Would GMAC lender the extra with no penalty?

Satchell's

Hi, and thanks for your reply...

Yes we are moving, we are on a loaded rate as when we applied we had a lot of bad debt - it's all cleared now but still on our record - no mortgage arrears, 2 defaults on hubbys name and one ccj from 2 years ago on mine - but as i said - all paid and clear.
There are a lot of much better deals out there, but i dont think we could find one good enough to save us MORE than £5k in 11 months (the penalty ends in April 06). Gmac will not lend us any more on hubbys income (£28k)....

payless

Obviously not knowing the current charge rate & loan size , I can't calculate the potential penalty Vs Saving - but guess you have done it.

Would have thought it would be difficult to get a secured loan/ 2nd mortgage arranged at same time as porting / buying new property

Depending on equity you might get a version of a bridge to cover you- until you can but something in place but these can be expensive - and would need to be certain a replacement could be found. Personal (unsecured) lending is usually over a shorter period, so higher payments required and again rates might be affected by your history.

I must admit with this penalty over you, plus some credit problems in last 2 yrs ( can you afford any more anyway) I would really be thinking if possible hold off moving until next year ( I do understand other factors may be an issue) , in meantime doing best to keep credit file looking healthy and then making sure any more is affordable.