Understanding the Porting Process
If you’re a homeowner with a mortgage, you may have come across portable mortgages in the market. These mortgages provide you with the flexibility to transfer your current mortgage to a new property without incurring any penalty charges.
This feature can be beneficial if you’re currently on a fixed-rate mortgage with low-interest rates and planning to move to a new home. By transferring your mortgage, you can avoid an Early Repayment Charge (ERC) that would have been applicable if you paid off your existing mortgage before its maturity.
Retaining Favourable Mortgage Terms
In addition to avoiding ERC, portable mortgages allow you to keep the same terms and conditions as your previous property. This can be advantageous if you have favourable interest rates, repayment terms, or other features that you’d like to retain.
However, it’s important to note that not all mortgages are portable, and some may have restrictions or conditions when transferring them to a new property. It’s crucial to carefully review the terms and conditions of your mortgage before making any decisions.
Availability of Portable Mortgages
Not all mortgage deals in the market are portable. Specialist mortgage lenders, in particular, may have complex qualification criteria that don’t allow for porting your mortgage. If you’re considering moving home in Cambridge and want to know if you can transfer your mortgage, it’s best to consult with your mortgage lender directly. They will provide you with guidance on whether porting is an option and any associated restrictions.
Consider Other Options
If you find that your mortgage in Cambridge cannot be ported, you may need to explore alternative options such as remortgaging in Cambridge or paying off your existing mortgage before purchasing a new property. In such cases, it’s crucial to seek specialist mortgage advice in Cambridge from a qualified advisor. They will assist you in making an informed decision that aligns with your personal and financial circumstances.
Should You Port Your Mortgage?
While portable mortgages offer flexibility, there are situations where porting may not be suitable. One common reason is if your current lender is unwilling to lend additional funds needed for the new property. Another reason could be higher interest rates on the additional funds compared to your existing mortgage. In such cases, homeowners may choose to obtain a separate mortgage for the additional funds with more favourable rates.
Expert Advice for Informed Decisions
Before making any decisions, it’s recommended to consult with a mortgage advisor in Cambridge. Getting a second opinion from an expert can help relieve stress and ensure you make the best choice. They will guide you through the process and help you assess all available options.
Understanding Sub-Accounts
A sub-account is created when homeowners choose to port their mortgage and take out additional funds on a different deal than their original mortgage. This allows homeowners to retain their existing mortgage product while accessing additional funds at a different rate. The sub-account will have a separate interest rate, payment schedule, and terms and conditions from the original mortgage. It’s important to review and realign sub-accounts to avoid potential issues and ensure they still meet your financial needs.
Seeking Mortgage Advice in Cambridge
If you’re planning to move home and require mortgage advice in Cambridge, it’s essential to consult with a qualified mortgage advisor. At Cambridgemoneyman, our experienced advisors specialise in helping clients with their moving home mortgage needs. We take a personalised approach to understand your unique situation and find the most suitable mortgage product for you. With access to a wide range of lenders, we can offer a comprehensive selection of mortgage products. Contact us today for expert guidance on your mortgage application.
Date Last Edited: December 6, 2023
