Chelsea Building Society - Porting mortgage

icklesurfer

Hi. I have a question about porting my mortgage.

I bought a flat in 2007 but house prices crashed and I've been with a negative equity lemon since then. To put it in to context, the detached the 3 bed with a drive and mature garden next door sold just 2 years ago for less than I paid for my flat. Gutting. During this time I was made redundant and you know the drill... I got in to debt and have been scraping my credit score off the floor ever since.

Since then I got a decent job but it's nowhere my flat is so i've rented my flat out and I'm renting another flat for myself close to work so that I can save in travel costs - which means i've got an extra £200 a month to throw at my debt. The thing is, i live in constant fear that my tenant will go and i'll be stuck for a mortgage and a rent payment and fall back down the debt-hole. So sense tells me that I need to live in the property I own, but i'm not going to be able to get another mortgage yet so I've been looking into porting. Does anyone have any good or bad experience of this? Is there anyone who has actually been able to port borrow more?

[Deleted User]

icklesurfer wrote: »

Is there anyone who has actually been able to port borrow more?

Loads. But that's not relevant.

The issues are whether your mortgage is portable (subject to criteria) and whether you will pass affordability and lender criteria to borrow more.

It sounds like the second is going to be the main problem.

icklesurfer

It is portable, and as I earn much more than I did I think affordability wouldn't be an issue but the lending criteria will be a stumbling block.

kingstreet

Remember you are porting the rate and the terms to a new Chelsea mortgage which has to be applied for and status, criteria and valuation checked.

Any increase in the borrowing will be met by one of the lender's current products so you will have two sub accounts to reflect the old and the new bits.

You aren't moving a mortgage from one property to another as that is not possible.

icklesurfer

Thanks for your advice. I knew I'd have to get a valuation so that the mortgage company could see they were getting their moneys worth but I thought of it as being more of a house swap. I've obviously got a lot more research to do.

Thrugelmir

If you've some extra cash start paying down the mortgage while the tenant is in situ. At least start putting matters into your favour. There's no quick answers.