Mortgage Porting question
Mortgage Porting question
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Rollin

Original Poster:

6,331 posts

274 months

Monday 11th January 2021
quotequote all
A relative is selling her house and has a buyer who is in a hurry.
She hasn't found a new place but is keen to buy ASAP, although it may turn out that she has to rent for a month or 2.

Her current mortgage has early repayment charges of about £7000 in effect til Feb 2022, which she would rather avoid paying if possible. Her house sale will enable her to pay off her existing mortgage and buy the new house outright.

Her mortgage is portable so in theory she could just move the mortgage to the new property and continue to pay it until Feb 2022 and then pay it all off. The interest for that period would be considerably less than £7000.

The problem is she may not have a house to port the mortgage to for a couple of months.
Is there any way she can avoid the early repayment charge?

Sarnie

8,368 posts

238 months

Monday 11th January 2021
quotequote all
Yes, there will be a short grace period where she can find a new property to the new property............the grace period will depend on the lender but expect it to be circa 3-6 months......and the new purchase would need to complete within that 3-6 month timeframe.....

Rollin

Original Poster:

6,331 posts

274 months

Tuesday 12th January 2021
quotequote all
That gives her some hope. Thanks for that.