If I have a lifetime mortgage, what happens if I want to move house?
For many, retirement is a time to enjoy your home and garden, and the majoirty of retirees think they'll stay in their home for the long-term. However, whether you've already got a lifetime mortgage or are considering taking one out, it's always good to know what your options are in the future.
The option to 'port'
If you already have a lifetime mortgage and decide you want to move house, it may be possible to transfer your mortgage from your current property to your new property – we call this ‘porting'. If the property is acceptable to the lifetime mortgage Lender, you will be able to move the loan with the same Terms and Conditions.
If you want to move your lifetime mortgage to a new home, your lifetime mortgage lender will help you start a porting application. If your mortgage is with Retirement Advantage, here's what we would do:
1. Finding the property you want to move to
This is the first step, and you should only start the process once you've found a property you'd like to move to. Once you’ve found the property you’d like to purchase, you’ll need to contact our Customer Services team.
2. Our Underwriters will talk to you about the next steps
Our team will be able to talk you through the next steps and have a porting application form sent out to you. You’ll need to fill this out so that we can check your new home is acceptable to our current lending criteria. If you tick any of the grey boxes on the form, you’ll be prompted to give our Underwriting team a call and they’ll be able to tell you if the property is acceptable. We’ll also need to know the selling price of your current property, and the purchase price of your new property.
What happens if the purchase price is different to my selling price?
If your new property is of a lower value than your current one, you may need to repay some of your mortgage. This is to make sure the percentage you borrowed against your home remains the same. We won't charge you an early repayment charge if you need to make a repayment for this reason.
Equally, if your new property is worth more, you may be able to borrow more. Your financial adviser will be able to talk to you about this in more detail.
Once you’ve completed your application form, we’ll instruct a valuer and they’ll contact the estate agent or the seller of the new property to arrange a valuation. Upon completion, our Underwriters will review the valuation report and ensure that the property meets our lending criteria.
4. We'll send you an Offer Letter
If the property is acceptable to us, you’ll receive an Offer Letter confirming the details of what your new ‘ported’ mortgage will look like, including any amount you may need to repay.
Steps 1-4 generally takes 2 weeks, but they can be quicker.
We’ll also send a copy of the Offer Letter to your solicitors, who will start the legal process. The legal stage is generally the lengthiest part of the application and can take between 4-6 weeks (although it can sometimes take longer if a case is more complex).
The porting application will run alongside your house purchase, and we’ll liaise with your solicitors to ensure that everything completes on the same day. At that point, we'll simply remove the charge we hold on your first property, and put a charge on your new property.
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