Mortgage porting means transferring your existing mortgage deal from one property to another. The amount you need to borrow will probably change, but it doesn’t involve altering the terms or interest rates, or changing your lender. This sounds straightforward, but there are a few points to bear in mind.
Your lender will review your circumstances
To port your mortgage, you will basically have to reapply to your lender. This is because they will want to know if there has been any change in your circumstances since the original deal was done. This is so that they can assess any potential risks of you not being able to meet the repayments, especially if the value of the new property is higher.
What might affect the decision?
The lender will look at your current income, so if this has dropped since your first application, this may be grounds for rejection. They are also likely to check your credit rating, which keeps track of loan repayment records. If you are significantly older than when the original mortgage was approved, this may affect the outcome.
How much you need to borrow will also be a factor; if the new property is cheaper than the existing one, then unless your circumstances have altered significantly, porting your mortgage should not be a problem. If you need to borrow a higher sum, then the lender will want to make sure there is a good chance that you can meet the repayments.
What if my application is rejected?
You will have the right to appeal if your porting application is declined. If your appeal is rejected, then it is still possible to find a deal with a new broker. If the terms of your current mortgage are not favourable, then you might want to look around for a better deal whether your current lender agrees to port your mortgage or not.
For more information, please contact an independent mortgage advisor in Liverpool.