Porting joint mortgage to one person on separation, any pitfalls?

Plate_Spinner

Hello. I spoke to my mortgage provider a few days ago as myself and my partner have decided to separate. We have to sell our home (joint mortgage and both named on deeds) but we are tied into a fixed rate so will incur early repayment charges (ERC). The mortgage company suggested porting the mortgage to one party, therefore saving on those ERCs. They said that person could then buy something else and still be tied into the same rate and no fees to pay, which sounds good.

However if we done this, and for arguments sake we ported the mortgage over to her, does that mean all the money from our house sale goes straight to her? Or would they split the money first? Obviously I want my share as well so I can move on. Any advice much appreciated please. Thank you.

dimbo61

So many questions !
Have you got kids,
Can she afford on her income alone the mortgage
Have you got much equity in the property
Who put in what for the deposit
Are you married
Have you both got pensions etc

Plate_Spinner

dimbo61 wrote: »

So many questions !
Have you got kids,
Can she afford on her income alone the mortgage
Have you got much equity in the property
Who put in what for the deposit
Are you married
Have you both got pensions etc

Yes we have young children, not married. We are very fortunate that we have a lot of equity in the home, mortgage only 35K and house valued at 650k. We are happy to split the sale 50/50. We should both be able to get mortgages elsewhere as we will have a large deposit each, just wondering where I stand if we transfer joint mortgage over to her, does that mean all the money we get for our house (when It sells) goes to her, or does the porting only happen once its sold and money split?

Thrugelmir

The ported mortgage only relates to the new property that one of you will purchase. Has no bearing on the current one.

With only £35k left to repay. Less by the time the property is actually sold. The ERC is going to be a small cost to both of you in the bigger scheme of things. Not something to get fixatated about.

Plate_Spinner

Thrugelmir wrote: »

The ported mortgage only relates to the new property that one of you will purchase. Has no bearing on the current one.

With only £35k left to repay. Less by the time the property is actually sold. The ERC is going to be a small cost to both of you in the bigger scheme of things. Not something to get fixatated about.

Thank you, thats ok then, so no issues with splitting the proceeds of the sale, thats all I was concerned about. I was told the ERC applied to the entire sum borrowed and not the remaining balance

dimbo61

Just to make sure ring the mortgage company and ask the question.
What is the ERC on our joint mortgage ?
Does it go down if we wait 3/6/12 months etc
Exit fee ?