‘Porting’ a mortgage is becoming more common these days. Porting simply means that the homeowner takes their mortgage product with their existing mortgage lender with them when they move home, rather than choosing a new rate and/or lender
Usually borrowers “port” their mortgages when they have a big exit fee to pay if they were to repay the product early.
With most Equity Release mortgages it’s likely that the loan is increasing in size as interest on money you have borrowed on the mortgage accrues. However, this doesn’t mean that you can’t port your mortgage to another, perhaps smaller, property. What is critical is that there is enough equity in the new property to still cover the debt in order for you to meet your existing lender’s criteria. If there isn't enough - your lender may ask you to repay part of the loan
The new property also must meet current lending criteria. If a property is unusual or might be harder to sell when you and your partner die, this may cause an issue. Sometimes specialist retirement homes and sheltered living accommodation can be viewed as outside some lenders’ remits.
The best way to learn about Equity Release and associated issues is to speak with Mortgage Required. We are members of the Equity Release Council and as such we offer you the best independent advice and certain safeguards such as a ‘no negative equity guarantee’. For more information, call us.
Contact Mortgage Required to speak to an Equity Release adviser on 01628 507477.
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