Bridging finance to port a mortgage

THE SCENARIO

Bridging finance can be an ideal solution for borrowers who need the funds to complete on a new property, but are waiting on an external situation to be resolved before this can happen. If you are in this situation, Enness will always work to find a route to enable you to achieve your goals.

For example, I have recently worked with an expat who had lived abroad for many years. My client had a small property portfolio, and was currently looking to purchase a new property whilst simultaneously selling an old one.

To buy the property she had in mind, she needed to move quickly as the seller was working to a tight timeline. This meant she needed to complete before receiving the funds from the sale of her old property.

As she was selling one buy to let and purchasing another, my client wanted to transfer her current buy to let mortgage from her old property to the new, which is known as ‘porting’ a mortgage. Mortgage porting is only available in certain circumstances, but can sometimes be used if you wish to transfer your product rate and loan amount to a new property without paying early repayment charges.

OUR SOLUTION

To do this, you are technically required to pay back the loan before taking out a new, identical facility. Whilst this is fine when selling and simultaneously purchasing the new property, this was obviously not possible in my client’s situation. We therefore planned to arrange a bridging finance facility.

Unfortunately, the lender was not happy with this as a temporary solution, so we had to take a different approach. I therefore raised bridging finance against the property for sale and another property in her portfolio. This allowed her to repay the outstanding mortgage on the property to be sold and port the mortgage across to the new property while also filling the gap the equity in the property would have covered for the purchase.

Even if our initial solution turns out not to be a good fit for your scenario, I will always work tirelessly to ensure we can find a resolution which enables you to carry out your plans successfully.

GET IN TOUCH WITH US

ARE YOU THINKING ABOUT A MORTGAGE?

CONTACT US