Mortgage Portage Questions
Discussion
Just wondering whether anyone has any experience of porting a mortgage? I have tried to contact Nationwide (current mortgage provider) a number of times, but I am being kept on hold for a considerable amount of time - I will try again this week.
I have a few questions relating to mortgage porting:
Firstly, the purpose of doing this is to avoid paying the early repayment charges on our current mortgage.
We are looking to borrow more, so in affect would port our current mortgage and take out another.
Our outstanding mortgage is £200k (circa 1.89% interest) which is the part that will be mortgaged.
In addition the porting we are looking at taking out a further mortgage for £90k (confirmed acceptable by decision in principle)
My questions are:
1) I assume that the rates of the existing mortgage (£200k @ 1.89%, 31 years remaining) will remain the same and be passed to the new property?
2) The additional mortgage would need to be for £90k and would need to be taken out as a new product? £90k mortgage would be 24% LTV (new house is £375k)- would this be the correct LTV given the above mortgage as well. This could attract an interest rate of 1.19%
3) Can the additional mortgage be a different term to existing mortgage? Our existing is 31 years, could the new mortgage be 35 years or do they need to align?
TIA
I have a few questions relating to mortgage porting:
Firstly, the purpose of doing this is to avoid paying the early repayment charges on our current mortgage.
We are looking to borrow more, so in affect would port our current mortgage and take out another.
Our outstanding mortgage is £200k (circa 1.89% interest) which is the part that will be mortgaged.
In addition the porting we are looking at taking out a further mortgage for £90k (confirmed acceptable by decision in principle)
My questions are:
1) I assume that the rates of the existing mortgage (£200k @ 1.89%, 31 years remaining) will remain the same and be passed to the new property?
2) The additional mortgage would need to be for £90k and would need to be taken out as a new product? £90k mortgage would be 24% LTV (new house is £375k)- would this be the correct LTV given the above mortgage as well. This could attract an interest rate of 1.19%
3) Can the additional mortgage be a different term to existing mortgage? Our existing is 31 years, could the new mortgage be 35 years or do they need to align?
TIA
Just to go a bit further it is the rate and the amount that you port, not the term. You can do a new term and still port your 200k @ 1.89.
In terms of the term (so to speak!) if you were considering doing 31 year port and 35 year new for the sake of a payment you are comfortable with you could just do it all over 32 for example. Based on the weighting of your balances I'm guessing 32 would give you similar payments to your 31/35. This keeps your mortgage a bit 'neater' too.
In terms of the term (so to speak!) if you were considering doing 31 year port and 35 year new for the sake of a payment you are comfortable with you could just do it all over 32 for example. Based on the weighting of your balances I'm guessing 32 would give you similar payments to your 31/35. This keeps your mortgage a bit 'neater' too.
georgefreeman918 said:
Just wondering whether anyone has any experience of porting a mortgage? I have tried to contact Nationwide (current mortgage provider) a number of times, but I am being kept on hold for a considerable amount of time - I will try again this week.
I have a few questions relating to mortgage porting:
Firstly, the purpose of doing this is to avoid paying the early repayment charges on our current mortgage.
We are looking to borrow more, so in affect would port our current mortgage and take out another.
Our outstanding mortgage is £200k (circa 1.89% interest) which is the part that will be mortgaged.
In addition the porting we are looking at taking out a further mortgage for £90k (confirmed acceptable by decision in principle)
My questions are:
1) I assume that the rates of the existing mortgage (£200k @ 1.89%, 31 years remaining) will remain the same and be passed to the new property?
2) The additional mortgage would need to be for £90k and would need to be taken out as a new product? £90k mortgage would be 24% LTV (new house is £375k)- would this be the correct LTV given the above mortgage as well. This could attract an interest rate of 1.19%
3) Can the additional mortgage be a different term to existing mortgage? Our existing is 31 years, could the new mortgage be 35 years or do they need to align?
TIA
1) The rate and the balance will remain the same but you can change the term in line with the further advance term.I have a few questions relating to mortgage porting:
Firstly, the purpose of doing this is to avoid paying the early repayment charges on our current mortgage.
We are looking to borrow more, so in affect would port our current mortgage and take out another.
Our outstanding mortgage is £200k (circa 1.89% interest) which is the part that will be mortgaged.
In addition the porting we are looking at taking out a further mortgage for £90k (confirmed acceptable by decision in principle)
My questions are:
1) I assume that the rates of the existing mortgage (£200k @ 1.89%, 31 years remaining) will remain the same and be passed to the new property?
2) The additional mortgage would need to be for £90k and would need to be taken out as a new product? £90k mortgage would be 24% LTV (new house is £375k)- would this be the correct LTV given the above mortgage as well. This could attract an interest rate of 1.19%
3) Can the additional mortgage be a different term to existing mortgage? Our existing is 31 years, could the new mortgage be 35 years or do they need to align?
TIA
2) No, LTV will be based on the total borrowing.
3) See answer to number one
Lenders are flat out currently, call wait times are huge with some lenders, especially around lunchtime......a broker can transact this for you fairly easily......
georgefreeman918 said:
Thank you for the responses - I was against using a mortgage broker initially, however would you recommend one due to porting? Is the process more complex?
Just use a broker. As an accountant, I've always dealt with my mortgages myself. Fairly easy in the past, but now it's a nightmare. You are writing off many days of your life if you try and do it yourself at the moment due to COVID 
. A broker can deal direct and their fees are peanuts compared to the time and hassle saved. I've not see a bad word posted against Sarnie, so save yourself the hassle and get in contact.As an example, I was going to port my mortgage when I move shortly, but even the initial calls were had work. And after the process was explained to me by my current provider, I realised how long it would take due to multiple sources of income, a complicated purchase and their risk processes. My friend (mortgage broker) has almost organised my new mortgage from start to finish today...
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