If you are a homeowner with a mortgage, you may have noticed that most of the mortgages available in the market are portable. A portable mortgage offers you the flexibility to transfer your current mortgage to a new property, without incurring a penalty charge for doing so.
This feature can come in handy if you are currently on a fixed-rate mortgage deal with low-interest rates and you are looking to move to a new property. By transferring your mortgage to the new property, you can avoid paying an Early Repayment Charge (ERC) that you would have otherwise incurred if you had paid off the existing mortgage before its maturity.
In addition to avoiding ERC, portable mortgages also allow you to keep the same mortgage terms and conditions that you had on your previous property. This can be particularly useful if you have favourable interest rates, repayment terms, or other features in your existing mortgage that you would like to retain.
However, it’s important to note that not all mortgages are portable, and some may have restrictions or conditions that apply when you transfer them to a new property. It’s important to read the fine print and understand the terms and conditions of your mortgage before making any decisions about moving to a new property.
It’s worth noting that not all mortgage deals available in the market are portable. In particular, mortgage products that are offered by specialist mortgage lenders, as their mortgage products may have complex qualification criteria. These lenders may not allow you to port your mortgage to a new property.
If you are considering moving to a new property and want to know if you can transfer your mortgage to the new property, it’s best to speak directly with your mortgage lender. They will be able to advise you on whether porting your mortgage is an option and any restrictions or conditions that may apply.
If you are not able to port your mortgage, you may need to consider other options such as remortgaging or paying off the existing mortgage before purchasing a new property. In these cases, it’s essential to do your research and seek specialist mortgage advice in London from a qualified advisor to ensure you make an informed decision that suits your personal and financial circumstances.
While portable mortgages offer flexibility to homeowners, not all may choose to exercise this option. There could be various reasons why porting a mortgage may not be suitable for some homeowners.
One common reason why homeowners may choose not to port their mortgage in London is if their current mortgage lender is unwilling to lend additional funds needed to purchase the new property. This could be due to the homeowner’s financial circumstances, creditworthiness, or the lender’s criteria.
Another reason could be that the interest rate on the additional funds required to purchase the new property may be higher than the rate on the existing mortgage. In such cases, the homeowner may opt for a separate mortgage for the additional funds, which may have more favourable interest rates.
In situations where the homeowner has the option to port their mortgage, but it doesn’t suit their requirements or is not financially viable, it may be worth considering other options. For instance, homeowners could opt to pay the Early Repayment Charge (ERC) and switch to a new mortgage lender, which offers more favourable terms and conditions.
Before making any decisions, we would recommend speaking with a mortgage advisor in London and getting a second opinion from an expert. If you are moving home in London, getting help with the mortgage side of things can relieve a lot of stress.
A sub-account is a type of account that is created when homeowners choose to port their mortgage and take out additional funds on a different deal than their original mortgage. This allows homeowners to retain their existing mortgage product while accessing additional funds at a different rate.
The sub-account will typically have a separate interest rate that is different from the interest rate on the original mortgage. As a result, homeowners may have to make separate direct debit payments for each account. This means that the sub-account and the original mortgage will be subject to different interest rates, payment schedules, and terms and conditions.
In some cases, the products may overlap, which could cause problems down the line. This means that homeowners may need to consider realigning the sub-account with the original mortgage to avoid any potential issues. For instance, one of the sub-accounts may fall onto a lender’s variable rate, which could lead to an increase in interest payments.
To avoid any potential issues with sub-accounts, it’s important to seek advice from a qualified mortgage advisor in London. They can help homeowners understand the terms and conditions of their sub-account and the potential risks involved. Additionally, homeowners should regularly review their mortgage product and consider whether it still meets their financial needs and goals.
If you’re planning to move home and need mortgage advice in London, it’s essential to seek the guidance of a qualified mortgage advisor in London. Whether you’re a first time buyer in London or an experienced homeowner, getting the right advice can make a significant difference in the outcome of your mortgage application.
At our Londonmoneyman, we have a team of experienced mortgage advisors in London who specialise in helping clients with their moving home mortgage needs. We understand that every situation is unique, and our advisors take a personalised approach to each client, ensuring that their mortgage needs are met.
We can assist you in navigating the mortgage market, helping you find the most suitable mortgage product for your personal and financial situation. We can help you understand the different types of mortgages available, including fixed-rate, variable-rate, and tracker mortgages, and help you choose the right product for your needs.
Whether you’re looking to port your existing mortgage or take out a new one, our advisors can help you find the best deal available. We have access to a wide range of lenders, including high street banks, specialist lenders, and private banks, enabling us to offer our clients a comprehensive range of mortgage products.
Date Last Edited - 22/02/2023