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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Can I get a mortgage on a mortgage-free property?

When there is no mortgage on a property – you have repaid any mortgage and own your home outright – it is said to be mortgage-free. The technical term for such a mortgage-free property is an “unencumbered” property – it is unencumbered by any mortgage, loan, charge, or other financial restriction.

Why mortgage an unencumbered property?

If you own your home outright, there is valuable equity locked up in its market value. You might want to release some of this potential to raise extra cash – for any number of reasons, but these might include and are not limited to:

the funds to renovate, extend or improve your home; you plan to move home but want the funds to keep the existing property to let out to tenants; or to invest in other property; to consolidate debt.

To raise those funds, you have the option of remortgaging your current home. Strictly speaking, of course, a remortgage is the replacement of one mortgage by another one. In this case…

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What are my divorce and mortgage buyout options?

Divorce rates in the UK have been climbing, said a report in the Telegraph newspaper on the 17th of April 2020. Indeed, a story in the Evening Standard on the 6th of January 2020 revealed the staggering statistic that, in that week, the volume of online searches for “I want a divorce” was 230% higher than in the first week of January just the year before.

In the trail of many of those divorces are likely to come difficulties with any mortgage arranged during happier times. So, let’s take a closer look at some of your mortgage buyout options following a divorce.

Selling up

Perhaps the most straight forward solution to the problem of dividing equity in a mortgaged home is simply to put it on the open market and sell it.

Provided there is no negative equity, the outstanding mortgage can be paid off using the proceeds of the sale, and the remaining equity may be treated as a marital asset in the normal way and be divided accordingly. If that div…

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Is there a buy to let mortgage age limit?

There are several criteria commonly used by lenders when considering an application for a buy to let (BTL) mortgage. Although how these criteria are applied might vary from time to time and from one mortgage lender to another, the following are typical factors:

you need to be interested in investing in residential property; you understand and accept the risks of such investments; your financial circumstances mean you can afford to take those risks; you have a sound credit record – and, preferably, own your own home; and until very recently, at least, you have to have been no older than 70 to 75 years of age when the mortgage came to its full term. So, for example,  a 25-year buy to let mortgage taken out by someone as young as 45 would not end until they reached the age of 70. Is there still a BTL mortgage age limit?

In recent years, mortgage lenders generally seem to have adopted a far more relaxed attitude towards those upper age limits. Read more

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Can I remortgage to pay off debt?

Do you remember when you arranged your current mortgage? A lot may have changed since then:

your home is likely to have increased in value – according to statistics in June 2020, UK house price growth is up 2.4% on the year, and has increased from 1.6% at the start of 2020; if you have any kind of repayment mortgage, your monthly instalments have been taking care of both interest and capital repayments – you owe less now than you did at the beginning; the rise in house prices, together with the reducing balance of your current mortgage, mean that the loan to value (LTV) ratio between your outstanding loan and the value of your home is lower now than when you first arranged your mortgage; and new mortgage products are likely to have come onto the market – potentially offering improved terms and conditions, along with more competitive rates of interest. You can remortgage

All of these changes may help to create the conditions you need to remortgage yo…

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Can I remortgage to build an extension?

Against a background of an uncertain housing market, many people will consider improving their home rather than moving. That option is likely to gain even faster ground as homeowners weigh up the cost of moving – putting the current home on the market, the lottery of buying a new house, legal and professional charges, and the hiring of a removal company, to name but a few.

That’s not to say that there are no costs in building an extension, of course. One of your initial decisions is whether there is an economic case to be made for building an extension – so, whether the cost of building is less than the eventual increase in the market value of your home. As an article in Homebuilding & Renovating on the 12th of May 2020 suggests, this may be a difficult case to make, and you might need to look at other properties in your area with similar extensions to see how they are currently valued.

Let’s examine some of your options for financing such a project …

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Can you add legal fees to your remortgage?

If you want to take advantage of a more attractive mortgage deal or increase your borrowing against the security provided by your home, you might want to consider a remortgage. A remortgage simply replaces your existing mortgage with an alternative that typically offers more favourable terms and conditions, greater borrowing, or repayment terms over an extended period.

These might all be compelling reasons but, when deciding whether or not to remortgage, you will also need to take into account the cost of doing so and weigh these against any benefits you might enjoy.

The cost of remortgaging

The following are some of the costs you might expect to pay – both for leaving your current mortgage and for setting up the replacement remortgage:

Early repayment fees

if your mortgage is still on a fixed-rate or tracker period, your current lender is almost certain to recover some of the lost earnings from a higher rate of interest by charging y…
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How can I pay for home improvements?

Normally held in April, the National Home Improvement Month in 2020 has been postponed until September. The campaign is no less significant for that slight delay. In 2019, it prompted at least 17 million homeowners to improve their homes in some way and 2020 is expected to see even more of them follow suit, say the organisers.

The organisers point to surveys that show the most favoured parts of the home for improvement – with some variation between all respondents and those in the younger, under-25 year-old age group:

kitchen – 20% of all respondents, but 18% in the younger age group; bedroom – 18% of all respondents, but 25% amongst those under 25; and living room – 14% of all respondents, but the bathroom for 10% of under-25s.

In truth, of course, and depending on the house you live in, you will have your own list of priorities when it comes to home improvements.

Apart from those priorities, one of your major concerns is likely to be…

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What happens at a mortgage broker appointment?

You’ve finally identified and located your ideal home – now it’s time to start thinking money and the mortgage you will need to buy the property.

To secure the most professional, independent advice and information about the many competing mortgage products on the market, you might want to consult a mortgage broker. You have the first meeting lined up, so, what happens at a mortgage broker appointment and what questions are you likely to be asked?

About you

Identity

An article in the Telegraph newspaper on the 1st of April 2020 discussed potential flexibilities. Still, it reiterated that it is a requirement of the Financial Conduct Authority (FCA) for financial advisers – including mortgage brokers – to confirm the identity of their customers. This forms part of the finance industry’s collective efforts to curb the menace of money laundering.

When you go along to the first meeting with your mortgage broker, therefore, get this forma…

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What is the role of a mortgage broker?

Whether you are searching for the first time or have had a mortgage before, you will know that the mortgage market offers a practically overwhelming choice of products. It is difficult to know where to start and to decide which mortgage is likely to most suit your particular needs, requirements, and circumstances.

It may be difficult making that choice, but it is essential to get it right. A mortgage is a long-term commitment and, if you get it wrong, you might be left with many years’ of grappling with an unsuitable product that is costing you considerable unnecessary expense.

Your mortgage broker to the rescue

The role of a mortgage broker is to help you avoid just these pitfalls. Their training, expertise and professionalism are marshalled with the sole aim of matching your particular requirements with the mortgage products available.

Why use a mortgage broker?

The immediate appeal of using a mortgage broker may be in their saving you …

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