Mortgage porting

Joewasherein2019

Hi there everyone,

My name is Joe I’m 30 and require some advice from some experience people.

I’m after some questions answering.

We have a mortgage with 137k left with TSB.

Our house is valued at £245,000 with several different estate agents. We have done extensive work since moving in 2 years ago in our current house.

All new windows. Living room redevelopment, kitchen diner development, brand new bathroom etc etc. We got
The worst house on the best street scenario.

However we have found a house that we like that is listed at £735,000. We don’t require anymore borrowing from the bank we would use our own funds to acquire the house.

I would like to ask if we would need to go through a brand new application again? Or is it just a case of moving the mortgage over.

The other option is to now clear the mortgage on our current house if no option of the above is possible.

We just don’t want to go through the affordability again.

Thanks for taking the time to read.



Thank you everybody.

davidmcn

Porting just means your product is carried over, so you get e.g. the remainder of a fixed rate period without penalty. Otherwise everything works as a normal application, so the lender would still need to be satisfied with the property and affordability.

Joewasherein2019

Thanks for your reply.

I have seen some others on this forum who say they have ported without going through the whole assessment again.

That’s why I’m confused.

Joewasherein2019

But surely as we using our own cash there would be no problem and no worry to the lender on affordability in fact there secruity would increase.

I can understand affordability if we was borrowing more.

Thrugelmir

Joewasherein2019 wrote: »

But surely as we using our own cash there would be no problem and no worry to the lender on affordability in fact there secruity would increase.

I can understand affordability if we was borrowing more.

Firstly there's regulation that lenders are required to adhere to.

Secondly mortgage lending is a low margin business. Realising the "security" involves a lot of cost both directly and indirectly. Lenders therefore set their internal criteria in such a way as to minimise this.

Mortgages are underwritten at the macro not micro level.You are just another borrower amongst thousands. It's the lenders terms or nothing.

Joewasherein2019

Thank you for your reply.

Whilst I appreciate your reply.

Mortgage lending is an extremely lucrative business
What we pay a month £685.00 - £386.00 is interest according to our statement.

So there is no way to escape the reassessment of lending criteria?

The main reason is why I’m now self employed and when I took the mortgage I was employed by the company but since own now 75% of the shares.

davidmcn

Joewasherein2019 wrote: »

Mortgage lending is an extremely lucrative business
What we pay a month £685.00 - £386.00 is interest according to our statement.

I hope you don't think that's pure profit? Lenders get their money by borrowing it wholesale - at a rate slightly less than they charge you. The margins are small.

muhandis

From the MSE page on porting -

---

1. You have to reapply so may not qualify

When you ask your lender to 'port' your mortgage, you effectively have to re-apply for that deal. So, you may not qualify as it is much tougher to get a mortgage now than it used to be. You may struggle if circumstances have changed, eg, you're now self-employed, you earn less or you have more debt and/or outgoings.

Or you might not have changed at all but your lender's criteria has, so even though you got your first mortgage without hassle, it doesn't mean the same will happen again. And if you haven't made all your mortgage payments on time, chances are the lender will refuse in the hope you leave them.

---

To summarise, you are unlikely to be able to port your mortgage to a new property without underwriting and hence affordability check, valuation, etc.

Having said that, have you talked to a broker at all? It might be possible to actually get you a mortgage with a different lender even under your new self employed circumstances.

Joewasherein2019 wrote: »

Hi there everyone,

My name is Joe I’m 30 and require some advice from some experience people.

I’m after some questions answering.

We have a mortgage with 137k left with TSB.

Our house is valued at £245,000 with several different estate agents. We have done extensive work since moving in 2 years ago in our current house.

All new windows. Living room redevelopment, kitchen diner development, brand new bathroom etc etc. We got
The worst house on the best street scenario.

However we have found a house that we like that is listed at £735,000. We don’t require anymore borrowing from the bank we would use our own funds to acquire the house.

I would like to ask if we would need to go through a brand new application again? Or is it just a case of moving the mortgage over.

The other option is to now clear the mortgage on our current house if no option of the above is possible.

We just don’t want to go through the affordability again.

Thanks for taking the time to read.



Thank you everybody.