Most of the high street mortgages that are offered are portable. If you don’t know what a portable mortgage is then it simply means that you’re able to move the mortgage from one property to another without penalty. This is really helpful if you are moving house in York and you’re in the middle of a fixed rate deal because you may be able to avoid an early repayment charge.
Although portable mortgages are an option not all mortgages are portable. If your mortgage is with a specialist lender, the availability to port may not be available. The easiest solution to finding this out would be to call your lender and enquire.
When Porting is available, some customers sometimes don’t follow this route. It could be that your Lender will not lend you the extra money that will allow you to move home. The additional funds offered might also be a different rate to the ones on the current deal. Depending on the current deal and existing deals that are available, it might just be best to pay the early repayment charge and swap to a different lender.
A sub-account is created and added onto the mortgage should it be ported and additional monies end up being on a different deal to the original one. Therefore, this means that only one mortgage is set up and one direct debit, but two different rates of interest apply.
Sub-accounts can get quite annoying as different products eventually overlap with each other. In order to get these back aligned at some point will mean one of the sub-accounts will have to drift onto the lenders’ standard variable rate for a period of time.