A portable mortgage is quite common feature amongst most mortgages taken out. This should be highlighted by the mortgage adviser and illustrated on a mortgage offer.
A portable mortgage is where the mortgage is transferable without PENALTY if you move home. Without this feature an Early Repayment Charge maybe payable if the consumer decides to move within the scheme period.
A portable mortgage is suitable to those seeking to move home in the short term whilst in the scheme period. Applicants whom seek to move within the short term for whatever reason i.e. bigger property are advised to take out a mortgage with a portable feature
It is important to note that not all mortgage products are portable especially in the sub prime market.
At the initial mortgage application stage, a Key Facts Illustration will demonstrate whether the mortgage is portable or not. The Key Facts Illustration will highlight all features of a proposed mortgage.
If you require mortgage advice on a portable mortgage, please speak to one of our mortgage advisers. As stated, portable mortgages are important features within mortgage terms. This mortgage feature is important and offers flexibility for the mortgage borrower. Please note, the mortgage lender generally would want the same or more of a loan amount to be transferred. If the mortgage borrower is seeking to transfer less to the new property, it is most likely the mortgage lender will charge an early repayment charge for the difference.
Please speak to your individual mortgage lender or call us for further mortgage advice.