- What is a transferable mortgage?
- A mortgage (or home finance) that can be transferred to a third party (in the UK this is called Transfer of Equity)
- What is the difference between a transferable mortgage and a portable mortgage?
- A transferable mortgage can be transferred from the seller to their buyer
- A portable mortgage can be ported by the seller from the property they are selling to the one they are buying.
- Can anyone take over a transferable mortgage?
- Most UK lenders include a “due-on-sale” or “non-assignment” clause that says if the property changes ownership, the mortgage must be paid off
- Selected lenders (mortgages) and home finance providers (Home Purchase Plans) explicitly state their product is transferable subject to the Financial Conduct Authority’s mortgage market review affordability rules (helping sellers and buyers in all market conditions)
- Benefits?
- Sellers secure a buyer (seller has a transferable mortgage)
- Buyers secure against competition (buyer has a ready-made mortgage offer)
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