Any homeowner with a mortgage to their name will notice that the vast majority of high street mortgages on the market are portable.
A portable mortgage is where you move home, from one property to another, but still, take your existing mortgage with you and avoid the need to pay a penalty charge for doing so.
These come in handy if you are currently on a fixed rate mortgage deal with low interest rates, but looking to move into a new property. Doing so will give you the possibility to avoid having to pay an Early Repayment Charge (ERC).
No, not every mortgage deal on the market is portable. Especially mortgage product from a specialist lender, as their mortgage was probably quite complex to qualify for in the first place and they won’t want you to port it.
To find out whether porting your mortgage is the right option for you, get in touch and speak to your mortgage lender, they’ll be able to give you an answer.
Even if the mortgage is flexible enough to port, some homeowners may decide that option is not for them and choose not to do so.
The reason that these customers may not wish to proceed with porting their mortgage, can be down to a variety of factors. This can include situations where perhaps a mortgage lender isn’t willing to lend the extra funds, or differing interest rates in those additional funds.
It may be worth your while accepting the Early Repayment Charge (ERC) and move to a different mortgage lender altogether, if it works out cheaper to go to that new deal.
This is a type of account that will be attached to your mortgage when you look to port it and the additional funds will move onto a deal that is different to your original mortgage.
Because of this, each of these will be on two different rates of interest that are applied on both the mortgage and the direct debit.
In the future, the fact that the products can overlap may become problematic, and this might need looking at down the line, in order to get them realigned. This may mean one of the sub-accounts falling onto a lenders variable rate briefly.
If you are looking for moving home mortgage advice in Hull or you are looking for a buy to let mortgage in Hull, get in touch and speak to a mortgage expert today. We are experienced in helping many kinds of mortgage applicants in situations like this, and will do what we can to assist with all of your mortgage needs
Last Edited 16/08/2022