porting a mortgage to a property...

Deals_2

a friend of mine is selling her house for 320K. she has seen a property for 295K and it will need at least 20K spent on it to get it up to somekind of standard. is it possible to port a mortgage (they have a good rate on their mortgage at present so it would be best to port this) to this new property somehow... as they are self employed they have started looking into self cert and it seems that the best deal would add £300 at the moment on their mortgage per month for a cheaper property overall sounds crazy!!
they are currently on a variable of about 5.25% and the self cert fixed they are told is the cheapest (they dont really want to fix it) is 6.75%. they are told so far that if they go variable this will be in the 7%
any tips or advice appreciated. They are unsure if they should sell if this cannot be ported over and if the cost is going to be so much more (£300!!!). The person buying has offered full asking more or less on it. The buyer is desperate to move. The seller has a child starting a pretty good school so not that keen to move around.
thnaks for any advice

_Andy_

Hi

You mention they're self employed - can they not prove their income at all?

thanks

snarffie

_Andy_ wrote: »

Hi

You mention they're self employed - can they not prove their income at all?

thanks

Shouldn't they just ask their lender if their mortgage is portable?

If it is portable, and the valuation of the new house (-ltv ratio) is at least equal to the value of the new house, it's a no-brainer isn't it?

They need to ask their lender.

_Andy_

If its portable, it will probably be re-underwritten. The OP implies they've gone SE recently. If this is the case and they can't prove income they won't be eligible for the existing rate (assuming it's a status one).

Deals_2

to be portable it needs to be at least of the same value as the house that they are currently in ? but will call up bank and see also . it was a self cert mortgage. hard to prove income as the business was restarted but can offer a forecast as getting quite busy with amount of work...
please coudl you confirm what OP implies?

_Andy_ wrote: »

If its portable, it will probably be re-underwritten. The OP implies they've gone SE recently. If this is the case and they can't prove income they won't be eligible for the existing rate (assuming it's a status one).

_Andy_

Hi

Sorry I mis-read your post, thought they had gone SE recently.
Hopefully they should be able to port the mortgage then.

Deals_2

work has only just started coming in. even though property is only £295K - though work needed - does this mean we could port over then?

_Andy_ wrote: »

Hi

Sorry I mis-read your post, thought they had gone SE recently.
Hopefully they should be able to port the mortgage then.