Sanity, check please

SuseOrm

Hello , so I currently own two properties one is with Santander valued at 8 8, 000 with 4 4, 000 left on the Mortgage.  The Mortgage is at 4.2% and fixed for the next 4 1/2 years.  Currently my daughter lives in the property and it’s on a consent to let.  She will finish university in June at which point the house becomes surplus to requirements, and I have absolutely no desire to be a Landlord.  

The main residence that I live in has 122,000 left on the mortgage with Kent reliance that Mortgage deal is up in April.  I don’t think I can get a mortgage elsewhere due to the income.  I have less than one years, self-employed accounts.  And as you can imagine, in the first year, we’ve not made an enormous amount of profits.  

So the plan was to sell Property a that has the Santander Mortgage on it , but port the Mortgage to Property be paying off a chunk with the capital and a chunk with the Mortgage.  

Have I understood that correctly? Would that be possible Santander say yes I can port it.  I realise there’s going to be a little bit of an overlap where I’m not fixed on the reliance Mortgage but I think I will know before April whether the property will sell for the amount that I need.  It’s not going to be the case I can just fix again with Kent worst case scenario.  

Thank you for any assistance and thoughts

amnblog

I believe Santander will not let you port as a re-mortgage, only as purchase (fairly common rule with Lenders). In which case, this idea will not work.

Also, the porting facility refers to the product only, the Santander mortgage on your home will still have to be underwritten as a new application and Santander will want two years minimum self employed history.

SuseOrm

So if I sold both properties and bought a completely new one, I could in theory, port both of the current products and all of the equity with it ?  Actually, that could work out even better.  Thank you

amnblog

No, you cannot port two mortgages to the same property.

SuseOrm

Okay, so I spoke to Santander which is what I probably should’ve done in the first place and you can port it as part of a remortgage but you are right. It does need to be a new application.
Just commenting in case that helps anybody else searching  

amnblog

This comes up several times a month on the Forum. 

We Brokers always explain it.

There is constant confusion around this feature, to be fair Santander do actually say on their website...

"When you move home and take your existing mortgage deal with you, this is known as ‘porting’ your mortgage. You can apply to port your existing deal if you’d like to borrow more, borrow the same amount, or less."

https://www.santander.co.uk/personal/mortgages/existing-customers/moving-home

It's a shame they have not taught their telephone advisers how to explain it.

For those reading this thread that are still confused.

'Mortgage' is the legal instrument that secures the lending to the property as 'security' for the Lender.

The product is the lender's offered terms on that lending (e.g. 5 year fixed at 5.00%)

A new property means a 'new mortgage' and 'new application', but you can retain the 'product' to use on the 'new mortgage' if it suits, subject to certain conditions.

SuseOrm

amnblog said:

I believe Santander will not let you port as a re-mortgage, only as purchase (fairly common rule with Lenders). In which case, this idea will not work.

Also, the porting facility refers to the product only, the Santander mortgage on your home will still have to be underwritten as a new application and Santander will want two years minimum self employed history.

Still trying to juggle this, you dont happen to know how many pay slips Santander require from PAYE employment do you?  

Thank you @amnblog

amnblog

If permanent employment 

Latest monthly payslip (no older than two months from application date) or if paid more frequently than monthly, last four weeks' payslips required (no older than five weeks from application date).

If fixed term employment, zero hours contract, or family business it is more complex.

SuseOrm

amnblog said:

If permanent employment 

Latest monthly payslip (no older than two months from application date) or if paid more frequently than monthly, last four weeks' payslips required (no older than five weeks from application date).

If fixed term employment, zero hours contract, or family business it is more complex.

That’s brilliant, thank you