Bankruptcy mortgages

If you’re planning on moving home, one of the key things you’ll need to think about is a mortgage for your new property.

But what many people don’t realise is that, when you move, it is possible to transfer your existing mortgage with you.

A process known as porting essentially involves applying for a new mortgage with your current lender with the same rates and conditions as your current mortgage. In other words, you are transferring your current mortgage deal onto your new property.

Although many mortgages are portable, not all are, so it’s worth checking with your lender before considering this option.

So, what’s the catch? Firstly, there are no guarantees that your lender will allow you to port your mortgage. And, if they do, the risk is secured against the new property, and it is likely they will want to review your financial circumstances. If, for example, your income has fallen or your credit score has dropped, the transfer may be denied.

If you are looking into transferring a mortgage, we have created a helpful guide outlining everything that you need to know!

When you’ve made the decision to move to a new house, remortgage, or get onto the housing ladder you’ll need a mortgage to fund your purchase. Before you have finalised anything, you’ll want to ensure you’re eligible to borrow enough funds to secure your new home.

The first step should always be to talk to a specialist mortgage adviser. They will talk you through your options, check to see if you’ll qualify for a mortgage and can afford the monthly repayments before you reach the application stage.

All mortgage applications are subject to strict lending and eligibility criteria. A number of factors will determine whether you’ll qualify for a mortgage, including:

• the size of your deposit.
• how much you want to borrow
• and your credit history.

Your credit rating, employment status, your income and expenses, existing borrowing, dependents and age will also be assessed to verify your mortgage eligibility.

Your mortgage adviser will run through your financial history, your salary and your budget. You will also be subject to identification checks and are likely to be asked for evidence of any savings and/or investments and your earnings.

To make the process go a little quicker, you could print off recent payslips, tax documents, and bank statements, etc. ready for mortgage appointment. Oh, and don’t forget to take your driving licence or passport to use as ID.

Your mortgage adviser can also carry out a ‘soft’ credit search that won’t impact your credit score, so you’ll be able to start the application process with confidence.

If you’re thinking of applying for a mortgage, talk to our team of expert mortgage advisors and we’ll arrange a convenient time to meet you and check your eligibility. Call us on 03454 500200 or click here to make an enquiry.

When you’ve made the decision to move to a new home or remortgage your existing property, getting the mortgage deal is likely to be at the top of your list of wants. By far the most effective way of securing a good mortgage rate from a trusted provider is to talk to an expert mortgage advisor. A good mortgage specialist will have access to the most competitive rates available on the market and be able to find a deal that’s the right fit for you and your circumstances.

Before you start house-hunting, you’ll need to do some groundwork to assess how much you can afford to spend on your new home – remember to include your deposit, legal fees and Stamp Duty, etc. When you have an idea of what you need to borrow, you can then work out what your mortgage payments are by using our mortgage repayment calculator.

By talking to a specialist mortgage adviser early on in the process, you’ll get all the advice you need on the mortgage product that’s right for you. Your deposit, your age and having a joint borrower may determine the rate and the term of your mortgage.

You’ll need to decide which type of mortgage you’d like, such as a fixed-rate, variable rate, first-time buyer, repayment or interest-only mortgage. There may be fees, penalties and, of course, incentives available that could also sway you towards a particular product too.

When you’ve found the right mortgage product, your mortgage adviser will get the ball rolling and, when you’ve found your dream home, the next exciting step will be to make your offer.

No matter where you are in the house moving process, talk to our team of expert mortgage advisors and we’ll guide you through it all. Call us on 03454 500200 or click here to make an enquiry.

If you’re considering transferring your mortgage, the first thing you will need to do is find out whether or not your loan is transferrable.  To do this, refer back to your original offer letter, or failing that, you can contact your lender directly to discuss your options.

If you are eligible to transfer your mortgage, you can then apply for a mortgage which includes a credit check, along with a valuation of the new property you want to purchase and an in-depth assessment of your income. This is because, although the rate, terms and conditions of your mortgage may remain the same when you port it, it will technically be a new mortgage against a new property.

As it’s not the mortgage itself that moves, you will still need to apply for a mortgage on your new property. In effect, you’re reapplying for the same deal.

Your lender will then review your application and decide whether or not you can still afford the mortgage. If your circumstances have changed since you took out the original mortgage, you may not be approved for the transfer.

And it’s not just your financial circumstances that a lender will take into account. They will also consider your age, changes in employment, and the type of property you want to move to. All these factors will have a bearing on whether or not your application is accepted.

They will also need to establish whether the level of risk will change when you move. If, for example, the property has a lower value and the loan to value increases, there will be more risk involved.

The process of porting your mortgage varies from lender to lender, however, it is typically relatively straightforward and no more complex than a standard mortgage application.

You can transfer your mortgage to a cheaper property; however, lenders will only let you do this if you keep the same loan to property value (LTV) ratio. In order to keep the same LTV percentage, you may have to repay part of your original loan to the lender. This could incur an early repayment charge.

Equally, if you wish to transfer your mortgage to a more expensive property, you will have to meet similar criteria for your loan to property value ratio.

There’s both pros and cons to transferring your mortgage and it’s certainly not a decision you should take lightly. Ultimately, it comes down to whether or not it is a financially savvy decision based on your individual circumstances. Make sure you weigh up the advantages and disadvantages.

A good starting point is to compare the fees and savings associated with your offers, including exit fees, valuation fees and early repayment charges. This should help you to make a final decision.

The pros of transferring a mortgage

• If you are keeping the same terms with the same lender, you may not need to pay any mortgage exit fees or early repayment charges.
• If your original mortgage is fixed on a lower interest rate, that rate will transfer over to the new property.
• The mortgage application process may be shorter as you will have already provided much of the information to your lender (although they will need to confirm if any details have changed).

The cons of transferring a mortgage

• By sticking with your current lender and terms, you risk potentially missing out on better deals elsewhere. It’s important to consider all the available deals and rates.
• When you port a mortgage, you will still have to pay certain fees and charges such as valuation fees, legal fees, and arrangement fees.
• If you’re transferring your mortgage to a more expensive property, the additional money you borrow will probably be at a higher rate. This means you’ll have two different products at two different rates, with two different end dates. This can make re-mortgaging in the future more difficult.

The amount of time it takes to transfer a mortgage will vary depending on a number of factors, including the type of property, whether the value of the property is changing, and if your lender approves the transfer. However, porting the mortgage will usually take anywhere between 14 days and 3 months.

If you are unsure struggling and require assistance to help make a decision or you want to talk through your options, it’s always worthwhile speaking to the professionals. At Mortgage Decisions we’re on hand to offer you mortgage advice, please get in touch at 03454 500 200 or hello@mortgagedecisions.com