When you move, do you leave anything behind? You will refuse to give up on anything. How about taking your mortgage also? Yes! You heard it right. There is a thing called a portable mortgage. You can transfer it from one home to another with the current interest rates and terms. A portable mortgage is a good option when you keep frequently moving from one place to another. But there is a strong, widespread note that states that you will save money with the right porting methods. Check out the full list here for facts on how to save thousands of pounds through porting potentially.
Step-Wise Guide To Porting
An elaborate yet step by step guide is shared with you. There are many out there who are not aware of how to go ahead with porting mortgages. It will indeed be a life-changer for them.
- The first step will be to check whether your current mortgage has a portable feature.
- Then the terms and conditions of the original mortgage have to be well analyzed.
- Conclude the amount you are planning to borrow for your new home. (You will be able to port if it is less or the same value as your existing mortgage value)
- Find out if there are any early repayment charges yet to be made. It is applicable in cases when there is a delay in the sale and purchase.
- Consult your mortgage provider to find out if porting your mortgage is feasible.
Portable Mortgages: A Useful Option?
It is always your decision that matters the most. You can either keep your mortgage or port it to the new property. But keeping it does not make sense and offers no benefits. Let us discuss the perks of applying for a portable mortgage.
- Moving a mortgage with the same lender saves more time and energy. You need not research and compare.
- The paperwork reduces as the lender will be able to help you with almost everything.
- You need not face any penalty charges for leaving the mortgage early.
- The lender’s criteria for approval are likely to change, but you can still make it happen by providing the necessary proofs to qualify.
Things To Watch Out For While Porting A Mortgage
You cannot qualify for a mortgage if your everyday expenses and debts are high. You might get rejected for the mortgage and therefore make necessary research in advance and then apply.
- You will not be allowed to borrow if the new home is more worth than the existing mortgage.
- You may end up paying two mortgages simultaneously. The rate of the second mortgage will be at a higher interest rate.
The Bottom Line
Portable mortgaging is a good option as long as it does not make you spend on it. Watch out for the exit fees. It may be higher if you are in the introductory period of the existing mortgage. It is worth everything to calculate the costs and save a decent amount with the ported mortgage.