Is there such thing as transferring a mortgage?

Kirkz

Hi there, 
I appreciate any advice or guidance as I have what I think is a random scenario.
I currently have a Mortgage with my wife on my house (purchased for 115k in 2013, 70ishk left on mortgage and rough estimate of 200k value now).

im currently in a 3 year fixed mortgage deal with Halifax at around 3% with another year left.

this is where my odd scenario comes in,
my mother has a house, mortgage free that is worth maybe a bit more than our estimated value (let’s say 220k).
she currently is using inheritance money to purchase another house (to be closer to her parents to care for them) and as such wants to sell hers to us, ideally with us not having to be out of pocket.

This is where I ask, is this possible to transfer the value of my mortgage to hers and sell my house?
she doesn’t want us to be worse off financially on the higher mortgage rates etc.
is she best gifting us the house? 

Is it possible to transfer that remaining value of my house to hers (even if hers is worth more and she’s not asking for any additional money)? 

Thanks for any and all advice! 

jonnydeppiwish!

Yes it’s known as porting a mortgage. Ask your mortgage company.

theartfullodger

Weirdly different lenders have different procedures: Who'd thought that eh!   Some do  Ask you lender.

GrumpyDil

Yes, but only if your mortgage company like the planand allow mortgage porting on your mortgage. Although starting point is do you want to move to your mother's house? 

Kirkz

Thanks for the replies so far, I had no
ides that this type of thing existed.
And I should have stated yes I would want to
move In to her house 😂. 

I’ve outgrown mine with my 3 little ones and as they get older, the extra space that she has
Would come in handy! 

AlexMac

We’ve “ported” (ie transferred) our Nationwide mortgage to new properties. Depends on the lender ( although ours has been great to us over the past 20-30 years)

eddddy

Kirkz said:

im currently in a 3 year fixed mortgage deal with Halifax at around 3% with another year left.

As others say, transferring your mortgage deal to another property is called 'porting' your mortgage.

Some mortgage products allow porting, others don't.

Halifax say:

How can I find out if I can port my product rate?

• Your Mortgage Offer letter will say if you can do this

• Call us on 0345 850 3705 to find out if your product rate is portable 

More info: https://www.halifax.co.uk/mortgages/existing-customers/porting.html

If you're allowed to port, you'd probably have to go through the whole mortgage application process (affordability checks, referencing, valuation of the new property, etc)

But if your application is successful, you'd be able to borrow the same amount of money as your current mortgage, on the same fixed rate, with the same fixed rate end date, with the same loan to value limit, and no early repayment fee.

If you want to borrow more than your current mortgage, you'd borrow the extra on whatever current terms are available (not on the same terms as your current mortgage). 

kingstreet

This is a purchase at undervalue or a concessionary purchase where the consideration, the amount actually changing hands, is less than the value. The lender needs to know about this at the outset otherwise it will not be set up correctly.