Porting a mortgage - new finacial checks
Porting a mortgage - new finacial checks
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TTmonkey

Original Poster:

20,911 posts

277 months

Monday 23rd June 2014
quotequote all
Despite the fact that I'm selling one house, buying another thats cheaper, and trying to reduce my mortgage by around £50k, I have to go through a full mortgage appraisal to see if I can afford the new mortgage.

And oddly, its possible that I will get refused the new mortgage based on my 'affordability criteria' in which case I'd have to stick with the old one.....

Something utterly stupid about this.

Sarnie

8,373 posts

239 months

Monday 23rd June 2014
quotequote all
When you port a mortgage you still have to satisfy the lending criteria of that lender at that given time. People think that when you port a mortgage that you just transfer the balance but you don't, you have to redeem your current mortgage (paying any ERC's in the process) and re-apply for the mortgage you require, satisfying the lending criteria at that time. If accepted they honour the T&C's of the original mortgage and reimburse you the ERC's that you paid if any.

If you have ERC's and are looking to reduce the balance, they will ordinarily charge you the ERC % of the amount you are reducing the balance by too.