If you’re moving house, or would simply like to transfer your equity mortgage to another property, you may be able to do so by getting a portable mortgage. Most mortgages, in fact, are portable, and you should be able to port your mortgage to a new theory. However, there are some conditions.
Even though porting is a feature offered in many equity mortgages, there are some reasons you may not be able to, or that it may be more challenging, which are dependant on your lender. It’s important to know that when you request to transfer your mortgage you are effectively re-applying. Just like the first time you applied for a mortgage, your financial or employment circumstances and credit score will be taken into account. If these have changed since you first applied they could affect your ability to transfer your mortgage, or the rate you will receive.
For this reason, if you think you may have to transfer your mortgage in the future, make sure you understand all of your lender’s criteria. Making all your mortgage payments on time, keeping on top of any debt, and maintaining a good credit score are always good ideas. They are even more important when it comes to transferring your mortgage.
Another thing to consider is the value of the new property versus your current property. If the property that you’d like to transfer your equity mortgage to is more expensive than your current property then you may have to ask to borrow more. Your ability to borrow more will again be dependant on your financial situation, credit score, and your lender’s criteria. In the case that your lender won’t allow you to borrow more on your current mortgage, you may have to apply for a second loan.
If you are porting your mortgage, you are also subject to the lender’s rates. You must stick with the same lender your original mortgage is from, which could result in your paying a higher rate of interest.
If you are considering transferring a mortgage, it’s definitely a viable option; however there are certain challenges and there may be drawbacks. Enlist the help of a mortgage professional in order to fully understand how to transfer your mortgage, whether it’s a good idea for you, and what your other options may be. Contact Northwood Mortgage™ today to set up an appointment with one of our mortgage experts!