We have been told that in order to port our mortgage to a new home we must apply for our new mortgage at least one day before the point of redemption.
When is this though?

At the point of the agreed sale?
At the point of moving out/handing over keys etc to solicitor?

This is the first place we have sold, so all new to us.

 

Don't worry about all that...........it's why you pay solicitors and Banks / Building societies vast wads of cash !

Shaun

 

Why not ask your bank/building society?

Chip

 

the solicitor deals with the finer points of the transaction, and will release the monies to the mortgagee

when that is depends on the financial mechanics of the sale

 

I spoke to them this afternoon, then tonight when i got home and explained things to my wife about the process of porting, she asked the question of "at what point is the mortgage redeemed?", to which i did not have the answer.

The situation is we must apply for the new mortgage before redemption of the old one. However as we have not found a property to suit as of yet, we cant apply for a mortgage.
In other words, when we agree a price with the buyer of our home, does the transaction of monies take place then or on the actual day of moving?

 

I am doing a similar thing right now. BS rules will vary but in our case we applied for a new mortgage with same company and on the completion date (when we move out and in) then old mortgage is redeemed and new mortgage kicks in.

Just keep good communications going with your BS. In my case I HAD to complete both houses on the same date to seal the deal. If I'd left to all to my solicitor I could have been caught out with a hefty redemption penalty. dl

 

I think you have just hit the nail on the head there mate. So basically we have up until the day we move out, to have applied for the new mortgage, as thats when the money will exchange hands.

 

In our case we had to find a place to move into on the same day we moved out to be able to port the mortgage. Some BS are more flexible. But ring them as they will be helpful. But basically the main money transfer/s takes place at completion date (when you move in or out). You exchange contracts a few weeks before the completion date which commits you to going ahead with the deal and the buyer/vendor has to pay say 5 or 10% of the house value to the solicitor to hold safely which you will lose if you pull out of the contract. dl