Porting my mortgage

benson2221

I am planning to port my mortgage but the property I was supposed to buy has fallen through. I will probably go ahead with the sale of my property as I have 6 months to complete somewhere else before penalties kick in. 

My property is selling for 400k (100k will be my equity). As I'll still be paying my mortgage for potentially up to 6 months without owning a property where does the money go to during that period until I buy somewhere?

Hopefully that makes sense

Hoenir

Your mortgage gets repaid. Porting relates to the terms and conditions attached to the mortgage product. Term, interest rate etc etc. 

kingstreet

Your mortgage will be settled from the sale proceeds and any ERC paid. You will then have a period in which to find and purchase another property and at completion, the ERC will be refunded. In these circumstances many lenders don't continue the previous product you have to choose a new one. Check your lender's policy on non-simultaneous sale and purchase completions.

benson2221

kingstreet said:

Your mortgage will be settled from the sale proceeds and any ERC paid. You will then have a period in which to find and purchase another property and at completion, the ERC will be refunded. In these circumstances many lenders don't continue the previous product you have to choose a new one. Check your lender's policy on non-simultaneous sale and purchase completions.

Thank you for that info kingstreet. I will double check with them regarding non-simultaneous sale and purchase. They did say to me that I would continue paying the mortgage during that period. Does that part sound correct? I do want to sell my home buy if terms are unfavourable I'd rather wait

Edi81

Sounds as though there has been misunderstanding here. Who is the lender. 

Mortgage is really the name for the charge that the lender has over the property -not the property is sold the mortgage is always repaid. 

kingstreet

benson2221 said:

kingstreet said:

Your mortgage will be settled from the sale proceeds and any ERC paid. You will then have a period in which to find and purchase another property and at completion, the ERC will be refunded. In these circumstances many lenders don't continue the previous product you have to choose a new one. Check your lender's policy on non-simultaneous sale and purchase completions.

Thank you for that info kingstreet. I will double check with them regarding non-simultaneous sale and purchase. They did say to me that I would continue paying the mortgage during that period. Does that part sound correct? I do want to sell my home buy if terms are unfavourable I'd rather wait

No. On a non-sim sale and purchase, the mortgage ends. A new mortgage starts when the new purchase completes.