Strategic Mortgage Porting For High-Net-Worth Home Mover
The latest industry news and guides from Active Mortgages.
The latest industry news and guides from Active Mortgages.
Our client, a high-net-worth individual and company director, was looking to sell their current home and purchase a new £1.6 million property. Their existing mortgage was around £700,000, on a very competitive 1.69% fixed rate, with a significant early repayment charge (ERC) of 3%.
Their goal was to secure a 75% loan-to- value mortgage on the new purchase – without triggering costly ERCs or losing their low interest rate.
The key challenge was how to secure the required borrowing without incurring the 3% early repayment penalty – which would have amounted to tens of thousands of pounds. Additionally,
the client was a limited company director with retained profits in the business, so we had to ensure that the income and affordability were presented in a way that matched the lender’s criteria.
We recommended a smart two-part mortgage strategy:
✔ Port the client’s existing mortgage (£700,000) to the new property – keeping the 1.69% rate and avoiding the ERC.
✔ Top up the borrowing with a new 2-year tracker product at 4.89% to reach the full 75% LTV required.
The tracker product was selected strategically – it had low early repayment charges, giving the client flexibility. When their current fixed deal ends, they’ll be in a strong position to combine the full mortgage into one product. We also worked directly with the existing lender, ensuring a seamless transition with no need to move lenders or remortgage the full amount.
✔ 75% loan-to-value mortgage secured on a £1.6m property.
✔ No early repayment charges paid.
✔ Client kept their ultra-low 1.69% fixed rate on £700,000.
✔ Top-up agreed at 4.89% on a flexible tracker product.
✔ Set up for easier refinancing when the fixed rate expires.
The client was extremely impressed with how we structured the mortgage, particularly how we preserved their low-rate deal and avoided unnecessary costs.
“I didn’t even know this was possible – I’m so glad I got the right advice before jumping into a remortgage.”
✔ Porting your mortgage can be a highly effective way to avoid early repayment charge – especially if you’re on a strong fixed rate.
✔ Smart structuring now can set you up for easier refinancing later.
✔ Always check with a broker before redeeming a mortgage – there may be better options than a full remortgage.
Book a call with one of our team to talk about your requirements.
