Porting Mortgage/Second Mortgage

Lewi7

Hi All

Just wondering if anyone has any experience with porting a mortgage to a new property which requires a higher loan amount. Just trying to understand the potential options available.

We recently (within the last year) re-mortgaged to a 5-year fixed deal on our current property. However, our situation has significantly changed since then (could not be foreseen at the time) and we are now looking to move out of the local area for our upcoming new jobs. The new location will be commutable in the short term until we move but is quite a distance away.

We will only be approximately 1 year into our fixed deal and so the exit fees will be very high. Subsequently, we would probably like to 'port' our existing mortgage, but we will need to significantly expand our mortgage amount  (subject to acceptance etc.). Based on DIP/online calculators this should be affordable and feasible if we were taking out a fresh mortgage for the full amount required. However, I am unfamiliar with the mortgage porting/second mortgage process etc.

Subsequently, my questions are:

1. If you port a mortgage and need more money, does this require a second mortgage in order to avoid repayment fees (if within fixed period), i.e. you cannot increase the existing mortgage?
2. If yes to (1), will this be a similar process as the first mortgage or do they treat this any differently to usual (i.e. higher rates for a second mortgage or lower total amount available for lending than if you did it in one etc?)
3. If yes to (1), do the interest rates stay the same for the original proportion of the mortgage (first mortgage) and a new rate apply for second mortgage
4. If yes to (1), does this need to be with the same bank, and if not, what situation is/isn't this possible in
5. If yes to (1 & 4), can a mortgage broker get better rates for the second mortgage or can this only be done direct with your current bank
6. Does anyone also know whether HSBC accept mortgages while on probation period and if so, do they have any requirements

The above is just to give us an idea of our options, we will speak to the bank etc once we are closer to when we need to do all of this.

Thanks is anticipation of any responses!

Thrugelmir

The original loan product gets ported, the existing terms and conditions remain unchanged. An additional loan is taken out to fund the difference. There's only ever one mortgage on a property. As this is the legal charge placed on the property to secure the debt owed. There's no limit to the number of sub accounts (loans) you can have. 

Main stream lenders require the first charge on the property. 

K_S

@lewi7 Please note these are all generic responses based on the limited info in your post. There may always be exceptions based on your particular circusmtances, lender, etc.

1. Yes. You will end up with two mortgage parts - the original one which is ported and the new additional borrowing one. The term will run independent of each other.

2. The process will be like taking out a new mortgage now. The rate will depend on LTV, etc.

3. Yes, the first mortgage part (that was ported) will be unchanged in T&Cs, monthly payments, interest rate, etc.

4. Yes, for mainstream residential mortgages, you are tied to the same bank.

5. Most mainstream lenders will allow brokers to do the porting for the client, some will not. The rates may or may not differ.

6. For new starters on probation, HSBC will consider the case on its merits but as long as there isn't any sign of the employment being vastly different from the previous one (eg: your old salary was 40k and it's now 60k in the new job) they usually are happy to take it.

[Deleted User]

Just to make a slight amendment. The original loan that is ported across cab have the term changed if desired. The underlying interest rate stays the same but the payment can differ if the term js amended