Quick guide to porting a mortgage and borrowing more

A question frequently asked by homeowners wanting to move up the housing ladder and buy a new home is whether they can take their existing mortgage with them or if they need to start all over again.

The good news is that it is generally quite possible, and often likely to be advantageous, to take your mortgage with you when moving house – and the process is called porting.

Porting

Porting is the process by which you transfer your existing mortgage to a new house you are buying.

As the Money Saving Expert points out, this flexibility in the way you use your mortgage may be very welcome, but it is by no means guaranteed. Many lenders offer the flexibility because, of course, they want to keep your business – and it may provide you with the chance to retain favourable mortgage terms.

If you satisfy the conditions imposed by your lender concerning the porting of your mortgage, you can keep the product with which you are satisfied and, …

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What is an Islamic mortgage, and how does it work?

Unless you are from a Muslim background or faith, you might easily dismiss an Islamic mortgage as being too specialist for you. You probably regard such a mortgage as one reserved for those who profess a particular faith – with the religious connotations somehow tied up in terms of the mortgage.

In fact, Islamic finance products in the UK are treated in the same way as all others – they are subject to the same regulations and legislation as any other mortgage product and mortgage lender pointed out a paper in Lexology on the 1st of October 2019.

Indeed, the UK government has positively encouraged the growth of Islamic finance for at least the past 30 years’, according to an official paper entitled UK Excellence in Islamic Finance. In the past ten years’ or so it has consciously developed a fiscal and regulatory framework to reflect that fact.

What is a Sharia-compliant mortgage?

An Islamic mortgage is one that's compliant with Sharia law. Th…

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Mortgages for people aged 60 and over

As you get older, it becomes increasingly more challenging to get a mortgage.

From the mortgage lender’s point of view, the reasoning may be understandable. Mortgages are designed to be repayable over many years’ – 20, 25 or even 30 years, let’s say. For anyone taking on a mortgage when they are aged 60 or over, therefore, they are likely to be well over 80 years old before the mortgage reaches full term.

Along with all the usual calculations based on your current income, expenditure, credit record, and loan to value (LTV) ratios, therefore, any lender may also need to start looking at your income during retirement when determining the affordability of any loan – in other words, what your pension is likely to be worth and the affordability of the mortgage repayments.

Against those difficulties and the natural wariness of mortgage lenders, however, it must also be recognised that the population is ageing and that we are all living longer lives. …

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What are Right to Buy mortgages?

The Right to Buy was introduced by the Housing Act 1980 and gives local authority tenants in England the Right to Buy their homes at significantly discounted prices. There are different rules for Wales, Scotland and Northern Ireland.

You are eligible to participate in the Right to Buy scheme if the home you are renting is your main residence, it forms a self-contained dwelling unit, and you have been a public sector tenant (of the council, a housing association, or an NHS trust) for three years.

In a posting dated the 6th of May 2020, the Money Saving Expert also explained the government’s decision to trial rolling out the scheme to housing association tenants, too. It pointed out that there are approximately 2.5million housing association tenants in England, 1.3million of who have lived in those homes for at least three years and who may now qualify for the Right to Buy.

What is a Right to Buy mortgage, and how does it work? …
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How do Halal mortgages work?

It’s a word you are likely to have seen or heard but what exactly does “halal” mean? The Halal Food Authority offers one of the simplest definitions by explaining that halal means permitted or lawful – and contrasts it with its opposite “haram” which means prohibited or unlawful.

Halal is defined, therefore, with reference to the Muslim Sharia law. Within this context, its meaning broadens into concepts of what is permissible, lawful, clean, and ethical.

It is against that background it becomes clearer to think about Islamic mortgages as ethical mortgages – halal mortgages.

What is a Halal mortgage and how does it work?

What makes a halal mortgage an ethical mortgage? It is ethical because it complies with Sharia law. Sharia law holds that interest-driven money lending and investment are harmful and, so, prohibited.

A Sharia-compliant or halal mortgage, therefore, is one that does not rely on interest-based borrowing but on somethi…

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