Porting Mortgages How Does it Work?

In this video, I explain a little about how porting your mortgage works and how I personally have ported my mortgage(s) when moving twice. It also explains why I've got two mortgages on one property and talks about the challenges I've faced when porting/things I've learnt along the way!
Hopefully this information is helpful, but please remember it isn't formal advice of any sort and that you should research properly for yourselves when making financial decisions.

[@fiestygemini2379]

very informative and the most honest video ive seen on YT

[@WhenLoveisProjected]

Glad you found it informative!

[@TeaWithTez]

every time I watch your videos I realise I know less about life than I think, thank you for the video

[@WhenLoveisProjected]

😂 no problem at all, I’m glad it’s informative! ☺️

[@Srrc2567]

Yea just what I was looking for 🙌🏿🙌🏿 Very helpful 😊

[@WhenLoveisProjected]

Aww that sounds like good news in the making! 🥰☺️glad it was helpful! Xx

[@dtek1832]

Thanks for the vid! very helpful :)

[@scottb926]

This helped greatly. Many thanks.

[@WhenLoveisProjected]

🤗glad to hear that! You’re welcome!

[@TheMalcolms7]

Great video Very useful information 👍🏾

[@WhenLoveisProjected]

Thank you! ☺️

[@kayhicks8704]

Great video as usual! Who is the mortgage advisor you would recommend?

[@WhenLoveisProjected]

Thank you! ☺️ Her website is www.lifetime.co.uk

[@DamZFXBeats]

This video has been so useful! Been trying to wrap my head around this porting thing. So for example if I buy my house for 200k and then sell it for 300k, instead of using the 100k profit to pay off the mortgage interest and any early repayment fee (if any) and other fees to use the final profit (plus any existing equity) as new down-payment for the new house (let's say it's 350k), I can instead go for the port option and if I had savings, to pay off the 50k from selling at 300k,that should cover the cost to buy the new house. Have I understood correctly? And that the main advantage for doing so is keeping existing interest rate compared to getting a new mortgage which may have higher interest? Let me know if I've left out anything of misunderstood!

[@WhenLoveisProjected]

Glad it’s been useful! I’m not quite sure I understand you, because I don’t understand where the £50K in fees you’ve mentioned is coming from! But essentially I think you’ve understood correctly. Yes, you just transfer the existing mortgage over to the new property to keep the same rate/avoid early repayment charges. You will still have estate agents fees for selling, stamp duty, moving costs etc, but I don’t think that will quite add up to £50K! Depending on the cost of the new house you can use any extra equity, or take a bigger mortgage (if your wage has increased) to pay for things like a more expensive property/stamp duty/moving costs. If you can’t get extra money (or don’t want to), then yes you will have to use savings to cover any costs that aren’t covered by equity.

[@DamZFXBeats]

@@WhenLoveisProjected thanks for the prompt reply! Sorry its my bad words lol. When I say pay off, I mean that because the new house is 350k and I sold my old for 300k then the 50k needs to be paid off (which can be done through saving money until you have that amount). I understand you can increase the existing mortgage to cover the 50k, but I think it's best (if possible) to save up instead of an increase in mortgage. Is that assumption correct?

[@WhenLoveisProjected]

@@DamZFXBeats 😆Ah I get it! Yes you’d need to pay the £50K to keep the mortgage amount the same if you didn’t want additional lending and there isn’t enough equity in the house

[@Uwolz]

So I have a house I’m selling for 600 and 290 left on mortgage. I transfer the 290 to the new house that’s 650 making the house 940k just to keep the interest rate?

[@WhenLoveisProjected]

Not sure I understand…if the new house you’re buying is for £650K, you would transfer everything over including the equity and and keep the same interest rate on the £290K mortgage and either add £50K more from savings or get additional lending for the missing £50K. Don’t understand what the £940K is...Hopefully what I’ve said makes sense! 😅

[@SM-is8yb]

Hello! 😊 I have 120K left on my mortgage - I’m looking to sell for 210K. I’m I right to say that I will make 90K profit then I can port and downsize to a property of 120K?

[@WhenLoveisProjected]

Hey! Something like that. They probably wouldn’t let you have the whole £120K on the mortgage though, they’d probably ask you to put some of the excess in as a deposit. It might be considered a partial repayment as well, so they might want to charge you an early exit fee for paying down on the mortgage. Depends on the terms of your mortgage.

[@SM-is8yb]

@@WhenLoveisProjected thank you for the clarification!

[@BBHair1]

Could you get a bridging loan for the 66k?

[@WhenLoveisProjected]

Hmm, interesting question. I would imagine that’s not a great idea as bridging loans have higher interest rates. The only way I see that working is if the property needs some work on it. I guess you could get bridging to cover the extra, plus the costs to fix it up and then remortgage once the works are complete to be able to pay the bridging off. Bridging isn’t a long term solution because of the interest rates.

[@growqueen]

Still confused. What happens when you buy a cheaper property. Say you sell your property for £450,000 and you want to buy a property for £350, 000, but owe say £75,000 on your property. Whst happens then.

[@WhenLoveisProjected]

You would get the difference paid into your bank account! 💵💰

[@growqueen]

@@WhenLoveisProjected aww thanks for replying hun. I appreciate this. I'll subscribe

[@WhenLoveisProjected]

@@growqueen no problem and thank you!

[@natalieb2738]

First

[@WhenLoveisProjected]

😄I hope its useful! Thanks for all of your support! ❤️

[@02cralph]

Hi - i'm currently porting my mortgage to a new property. I've taken mortgage advice from my lender, and they've instructed me as follows: - current property: sold for £232,000 - remaining mortgage on current property: £150,000; 2 years fixed @ 2% (porting this) - new (purchasing) house value: £430,000 - top-up mortgage: £250,000 @ variable rate; please see below for explanation. My question is regarding the cash flow of this transaction. My mortgage adviser has advised me that once I port my existing mortgage to my new home that I'm purchasing, that my current home (that I'm selling) becomes mortgage-free. I'm doing both the sale of my property and the purchase of my new property at the same time. Therefore, once I sell my current property, port the existing mortgage to the new property, my current property that is sold means I will receive £232,000 (minus fees) in to my bank account. This means that I can pay £232,000 (minus fees) on to the new variable rate top-up mortgage, as there's no overpayment limit/charge on a variable rate, meaning that I'll have £150,000 of my fixed rate ported mortgage, plus roughly £20,000 at the variable rate, which I can then switch to a fixed term. Is my understanding of the above cashflow correct? My solicitor receives total mortgage from my lender of £400,000 for the purchase of my new home, and she sends to the seller's solicitors. My solicitor receives the monies from the sale of my current home (£232,000 minus fees) and send to my bank account. Thanks!

[@WhenLoveisProjected]

Hi, so sorry! I'm just seeing this now, I didn't get a notification of this comment. Not sure I'm understanding correctly. Everything gets taken care of on the same day and the solicitor handles the transaction and makes sure the money gets where it needs to be. If everything is being transferred to the new property, you won't get anything in your bank account. You only get the leftovers if there is any. So Your new house is £430K, your mortgage of £150K is ported leaving £280K uncovered. You wouldn't have 100% mortgage (presumably) so your top up mortgage wouldn't be £280K You have £80K equity remaining, so are you not transferring that to the new property as a 18% deposit? If so, you wouldn't get anything in your bank account, the lender will receive these funds directly from the sale. If someone else is covering the deposit, then of course, you receive any cash not tied up in the purchase. Hope that's helpful. If not, your mortgage advisor should be able to clarify.