‘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.
Related articles:
Skipton Building Society launches ‘Delayed Start’ mortgage meaning first time buyers won’t be required to make repayments for the first three months.
According to a survey by Skipton, first time buyers who bought their home in the last five years found that in the first three months of living there, they were spending upwards of £30,000.
5 days ago
If you have recently moved into a property with a garden that requires a little TLC, or you’d like to get on top of your current green space, check out our tips.
8 days ago
High street lender, NatWest, have launched a new product to help first-time buyers purchase a property with assistance from a family member or friend to get them on the property ladder sooner.
‘Buy Now, Pay Later’ (BNPL) schemes, such as ‘Klarna’ are short-term loans that allow shoppers to make a purchase, but delay paying for it for an agreed amount of time.
Klarna is one of the most popular BNPL services with 18 million customers in the UK alone, and offers interest-free payment options which is appealing to shoppers. However, does it affect a mortgage application?
14 days ago
We look at how to get the best Buy to Let mortgage rate, what's in store going forward, and options as a landlord with increasing costs.
23 days ago
Throughout this past week, lenders have continued to reduce their mortgage rates giving borrowers in the UK some welcome news following the change in global tariffs under US President, Donald Trump.
23 days ago
Did you know that buying a house, or relocating is in the top 10 most stressful life events?
Stress of course is an unavoidable part of life and there are many reasons why people experience stress, not just buying a house!
There are lots of effective ways to manage and reduce stress, check out our tips to help you.
With the stamp duty relief ending in England and Northern Ireland, we have listed the top 10 cheapest areas for first-time buyers as published by Rightmove.