The vast majority of High Street mortgages that are on the market are portable. A portable mortgage is simply a mortgage that you are able to move from one property to another without the need to pay a penalty fee. This becomes very useful if you are considering moving to a new house and are currently in the middle of a fixed rate deal, as it means you are potentially able to avoid an early repayment charge.
Something you need to be aware of is that not all mortgages are portable. If you are with a Specialist Lender then you may not have the opportunity to port your mortgage to another property. The easiest way to determine whether or not this is a possible route for you, is to give your Lender a quick phone call and ask them.
Even though many people may have the option to port their mortgage, some still choose not to go forward with this. Some reasons as to why customers don’t port could be due to various factors. Some common ones we hear of are lenders not lending the additional funds that a person needs to move, or that the additional funds will be on a different rate to the one you have on your existing deal. Depending on the new deal you are offered, you might decide to overlook the repayment charge and swap to a different lender altogether.
A sub-account will be created onto your mortgage when you decide to port it and the additional funds will end up being on a different deal to the original one. This means that although you only have one mortgage and one direct debit, there will be two different rates of interest that are applied.
Down the line having sub accounts will lead to the different products overlapping which could get prove an annoyance for you. To get them back aligned at some point will mean one of the sub-accounts having to go onto the lenders’ standard variable rate for a period of time.
If you’re looking for an expert opinion from a Buy to Let & Moving Home Mortgage Advisor in Nottingham, don’t hesitate to get in touch with us. We have dealt with thousands of applicants in this situation and usually have a good idea of how to help our customers with their mortgage needs.