Porting mortgage fixed term purchase problem

keepersball

Hi all I’m looking for some thoughts...

We have sold subject to contract and are going through conveyancing for a purchase

We were told of an issue today that will probably delay our purchase - our buyers want to move quickly and this puts our chain at risk

Under normal circumstances we would move into rented and wait for our new property to complete however we are porting our mortgage to the new property and have 4 years of our fixed deal remaining

If we finalise the sale of our property and do not buy immediately is there a way of avoiding early repayment fees (this would equate to circa £15k)

Is it possible to pay off the value of the mortgage to the bank (they have their money back so no risk to them) but continue our monthly payments essentially keeping the mortgage going until our new property is ready?

Any ideas or thoughts more than welcomed

Cheers

R

mierzwin

Some mortgage companies allow for for break between porting.

It happend to us and we could go into rented without paying penalty as long as we proved we are in the process of buying another house to where it was ported.

Best to check with your mortgage provider, drop them a call and I am sure they will be able to help you out.

eddddy

Have you investigated the practicalities of renting?

Most rental properties you see advertised will have a minimum fixed tenancy of 12 months. Do you know of a landlord who's prepared to offer a shorter tenancy?

The time limit for porting varies by lender - the limit is normally somewhere between 30 and 120 days. Check with your lender.


But imagine the stress - if you move into rental before exchanging contracts on your purchase...

... if things are not going well on the purchase, the fear that you will miss the completion deadline for porting (even by a few days), and lose £15k.

mh09abi

Currently in the same boat! House is sold, living with very kind friends until we can complete on our purchase. Our mortgage is with nationwide and we were in fixed term. Essentially we have 'paid' the ERC, but as long as our purchase completes within 6 months it will be refunded back to us on porting the mortgage.

AdrianC

If the lender won't agree to extend the port period, then it all comes down to how serious you think the person threatening to walk away and collapse the chain is.


Would that person (or others in the chain) consider contributing to your charge in order to maintain the chain?

£15k for an early redemption sounds rather substantial, though. Are you sure?

ToasterScheme

You'll have to check the current terms of your mortgage.

In our case (Yorkshire BS some years ago) the grace period was 6 months. You do have to pay the ERC at the time (so you need enough equity to do that) and it may be that you DON'T get the refund on the completion of the purchase. I recall we got it back as a cheque maybe 6 weeks (?) later.

Only your current lender can answer this.

Pretty certain that you can't "keep the payments" going in the interim where you don't actually have any debt to service.

Thrugelmir

keepersball wrote: »

We were told of an issue today that will probably delay our purchase - our buyers want to move quickly and this puts our chain at risk

Don't be bullied by aggressive buyers. Stay calm and wile away the time.