Usually, you’ll find that most high street mortgages are portable. Having a portable mortgage means that you will be able to move the mortgage from one property to another, avoiding any kind of penalty.
A benefit of having a portable mortgage is that it can allow you to potentially avoid any early repayment charges that otherwise would have come up. This can be helpful if you are looking to move into a new home and are currently tied into a contract with a fixed rate.
Even though it’s true that lots of mortgages available to customers are portable, this doesn’t apply to every mortgage. This is definitely evident with some specialist lenders. Contacting our team and speaking to your mortgage lender for a quick discussion can give you some confirmation on this.
Despite it being an option in many common cases, homeowners may simply not go for this option. This could be due to the lender not being willing to lend them the necessary additional funds required to move home.
Along with this, it’s key to keep in mind that the additional funds will on a different rate to the rate that your existing mortgage deal is already on. It may even be helpful for you to take on those early repayment chargers instead of staying where you are this is subject to the deal that your lender offers you.
When you decide to port your mortgage, a sub-account will be created at this point. The additional funds will be placed onto a different deal than the one you have on your current mortgage.
Because of this, you technically have a single mortgage and a single direct debit in your name. There are different rates of interest that will apply to each.
Further down the line, having sub-accounts can cause a bit of grief for some. This is because different products will eventually overlap with one another. You will need to make sure they are aligned once again as this could risk your sub-accounts falling onto the lenders standard variable rate for a set period of time.
If you are looking for further information regarding the option to port mortgages onto new property, please get in touch to speak to an expert mortgage advisor in Newcastle. We offer all our customers a free mortgage appointment where you can talk about your situation to an expert and find out the best option for you.
Whether you’re looking at moving house in Newcastle, dealing with a buy to let mortgage in Newcastle or are in need of assistance with a self employed mortgage in Newcastle, our team are more than happy to get you booked in for an appointment to explore your options.
Date Last Edited: April 14, 2023