6 Aug

Information On Port Mortgage Negative Equity

To port a mortgage means that you are transferring an existing mortgage to a new property, commonly referred to as portable mortgage or simply port mortgage. Essentially, you would want to port your mortgage in order to get out of dangerous grounds like negative equity which can become severe if left with no action. Low interest rate could also encourage you to go for port mortgage so as to take advantage of the current low rates. Porting your mortgage can also help you escape possible penalties.

Limited lenders
It is understood that only a few lenders would allow you to port mortgage due to negative equity because they want to limit risks as much as possible. Most of them did allow borrowers to port mortgage negative equity during the early nineties but this was specifically done as a way of stimulating the market. There are still a number of them allowing it and you might be lucky to find out that your lender is one of them. All the same, if you really think that port mortgage negative equity is the best option you have got, don’t be discouraged. Go a head and discuss it with your lender, convince them why you think you must do it.

Better than selling
When faced with negative equity, most borrowers find themselves in devastating conditions with very limited options. Often, selling the property could just be the main alternative available to you as a victim of negative equity. However, selling is not actually a wise decision because it can often be a cause of significant mortgage shortfall and this will worsen the situation further. Instead of selling, porting will be most appropriate in such circumstances and you will need to consult with your lender before making any move towards selling. Provided you have no intentions of acquiring additional lending, there are some lending entities that will allow you to port your current mortgage to a new property all together. Examples of lenders that can allow you to port your mortgage include Lloyds Banking Group (part of it), Lloyds TSB and Halifax, plus Nationwide and Coventry building societies.

You can port part of the mortgage
If you are not keen on porting your entire current mortgage, it is still possible to port just part of the mortgage and be left with the rest. This would happen in circumstances where you still want to retain some of the current features due to specific reasons that would favor your situation. It could be that there are certain features of the mortgage you do not want to let go. Maybe it’s a special rate that you want to retain because you will not enjoy it if you port your entire mortgage.