Portability

Posted on 10 May 2010 by shagun Khare


We bought a flat on first time buyer mortgage. Because of job we need to relocate and we want to rent out our apartment. Do we need to change our mortgage?

Shagun

It is possible that your existing Lender will allow you to keep your mortgage on the flat and grant you permission/consent to let and so your first move should be to talk to them and complete any necessary application forms. There is normally an administration charge and you can expect to pay anywhere between £25 and £150 for this.

Your existing Lender may grant you permission to let, but want to switch you to another mortgage rate or not grant you permission at all. In either case, you need to check whether or not any early repayment charges will be payable. As these can run into £1,000's you should ask whether or not it is possible to 'port' your existing mortgage to a new property and have the charges waived.

Once you have spoken to your existing Lender and know whether or not you can keep your existing mortgage, I recommend that you speak to an independent mortgage broker who can compare what you are being offered with the rest of the market.

Peter

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

Stay connected....

Association of Mortgage Intermediaries

Legal

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT.

John Charcol is a trading name of John Charcol Limited and its Appointed Representatives. John Charcol Limited is authorised and regulated by the Financial Conduct Authority. The Financial Services Register number is 665649. Registered in England No. 9157892. Registered office address for John Charcol Limited is 5th Floor, Cutlers Exchange, 123 Houndsditch, London, EC3A 7BU. The FCA does not regulate some investment mortgage contracts. Calls may be recorded for training and monitoring.