Mortgage Porting Questions

AFK_Matrix

Hi there,

So I have 5 years left on a fixed mortgage and just had some questions.

If I wanted to move within this 5 years can I port the mortgage to the new property without paying the ERC?

If porting the mortgage is possible can I increase the mortgage amount?

If porting is not possible I assume the only way to move property is to pay off the ERC??

Thanks.

kingstreet

We don't know. You would need to check the terms.

If you can port, you will apply for a new mortgage with the lender and this will be granted if you meet criteria and affordability.

If you do qualify, the first part of the new mortgage will be on the old rate to avoid the ERCs and the increase will be offered on one of the lender's new rates which matches the overall LTV.

Yes. The ERC will be payable on sale, if the port is not possible.

AFK_Matrix

Thanks for the answers kingstreet. I'll have a look over the mortgage terms for what it says about porting.

Just to clarify your 3rd sentence on if porting is possible. So the amount I have now as a mortgage (lets says 100,000 for ease) would be on the rate of my current mortgage. Then the extra money for the new porperty would be on what ever the new lenders rates are etc?

kingstreet

Existing lender's current rates for increased borrowing, yes.