Mortgage porting is a process that allows homeowners to transfer their existing mortgage to a new property when they move. This can be a convenient option for those who want to avoid early repayment charges or secure favorable interest rates. To assess the feasibility of mortgage porting, our Mortgage Porting Calculator comes in handy.
Formula: The formula for calculating porting potential is straightforward:
Porting Potential = Current Property Value – Existing Mortgage Amount + New Mortgage Amount
How to use:
- Enter the current value of your property in the designated field.
- Input the remaining amount of your existing mortgage.
- Provide the amount of the new mortgage you are considering.
- Click on the “Calculate” button to see the porting potential.
Example: Let’s say your current property is valued at $300,000, your existing mortgage amount is $200,000, and you’re considering a new mortgage of $250,000. By inputting these values into the calculator and clicking “Calculate,” you would find that your porting potential is $350,000.
FAQs:
- What is mortgage porting? Mortgage porting is the process of transferring an existing mortgage from one property to another.
- Why would I consider mortgage porting? Homeowners may consider mortgage porting to avoid early repayment charges or secure favorable interest rates on their new property.
- Can anyone port their mortgage? Not necessarily. Mortgage porting eligibility depends on various factors, including the terms of your current mortgage and the lender’s policies.
- Is mortgage porting the same as remortgaging? No, they are different. Remortgaging involves switching to a new mortgage deal or lender, whereas mortgage porting involves transferring the existing mortgage to a new property.
- Are there any costs associated with mortgage porting? There may be administrative fees or charges associated with mortgage porting, depending on your lender.
- Can I port my mortgage to any property? Not always. Your lender will typically assess the new property to ensure it meets their criteria for mortgage porting.
- What happens to my existing mortgage if I don’t port it? If you choose not to port your mortgage, you may need to pay early repayment charges or arrange a new mortgage for the new property.
- Can I increase my mortgage when porting? Yes, you can increase your mortgage amount when porting to cover the cost of the new property, subject to the lender’s approval.
- Can I port my mortgage if I’m downsizing? Yes, mortgage porting is possible when downsizing to a smaller property, but the lender will assess the new property’s value and your financial situation.
- Is mortgage porting available for investment properties? Mortgage porting options may vary for investment properties, so it’s essential to check with your lender for specific details.
Conclusion: The Mortgage Porting Calculator simplifies the process of determining the potential value you can port from your existing mortgage to a new property. Whether you’re upsizing, downsizing, or simply relocating, understanding your porting potential can help you make informed decisions about your mortgage options.