What happens to your mortgage when you upsize?

[filu63]

@someone12 Porting means moving your existing mortgage to a new property, not necessarily borrowing more.

Yes, with a 'second charge mortgage' if there's a problem the second lender can only get repaid after the first lender does. They're usually more expensive to account for this.

I think ERCs are usually pretty standard, not something you can negotiate. They typically reduce as you come towards the end of your fix. Tracker mortgages don't have an early repayment charge but of course you risk interest rate fluctuations.

I don't think it's a problem to have two loans though, so I wouldn't stress it personally, just do whatever comes out cheaper (keeping two loans going, paying the SVR on one mortgage until both mortgages are available to remortgage without an ERC, paying the ERC to get a single loan).

 

[soldierofgod22]

@someone12 You’ve pretty much hit the two options.

You can port your existing mortgage over with your current lender, you would also need to top up the mortgage by borrowing more too on new terms.

The other option is to ditch the current lender and pay off any early redemption fee and enter in to a new mortgage with new terms with a new lender.

Given recent rate increases you may be best to look at porting your existing deal and topping up. But certainly worth ‘crunching’ the numbers.

 

[bahamianbeauty]

@soldierofgod22 Lender doesn't have to approve a porting of the mortgage though.

First port of call is to check mortgage t&c or talk to the provider.

 

[soldierofgod22]

@bahamianbeauty True, but circumstances would have to be odd and may limit other lenders lending to for the lender to prevent a port.

 

[rogersdr01]

@bahamianbeauty You sure? We had to go through all the checks with Nationwide and ended up paying £14k ERC to move

 

[bahamianbeauty]

@rogersdr01 Yeah so you didn't port your mortgage then. Nationwide are great so good choice there.