5 year fixed mortgage - now want to buy new houae

[Rainbowdino]

Hello,
Can somebody please explain in simple terms how this works?
We have found our dream house, we weren’t planning on selling, it probably won’t happen (rush to get ours on the market) HOWEVER if we do want to put an offer in, how does it work with the mortgage?
I would assume we would need to stay with Santander so we have no exit fee. Do we phone them? Does anyone have any advice?
Thankyou v much, this is all so new

You can port that part of your mortgage over to the new property and get a separate mortgage for the extra (assuming you are going bigger/more expensive). Once your fixed rate ends you can combine the two. It's what we did.

Yep, very easy to do OP. We had a year left on our mortgage when we bought our current home, we ported this and took out a variable mortgage on the difference. The year expired in Jan and we then mortgaged on a new rate for the full amount. Very easy, but you will have to stay with your provider.

Yes what @MrsL2016 says, BUT you need to check that you can in fact port the mortgage. Not all mortgages allow this. If not you may have to pay an early exit fee which is usually a % of the mortgage amount with a multiplier depending on how long you have left on the mortgage product.

Eg our 5 year mortgage has a 14% early exit fee if we paid it off in the first year but ours explicitly says it can be ported. So it’s only an issue if you’re buying somewhere cheaper.

We did this with halifax and paid a penalty fee but then got it back once we had completed on our new place and stayed with them.

Not all mortgages are portable, so beat to call Santander and check if you can port your specific product. As per other posters, you just need to take extra product for the remainder (assuming the new house is more expensive?) the rate in the top up mortgage should be relatively low at the moment too - often they try to catch you with a high rate for that bit!!

Yes, the new house is more expensive.
Thanks for your help, I will check the documents and phone them.
Does that mean I need a mortgage in principle for the ‘top up’?

The paperwork for your mortgage should say whether it's portable. Might save you a call to the bank.

I think you still need to go through the normal mortgage process for the top up, but they should tell you on the phone. You may want to ask about your early term fees too, just incase that works out any better financially depending on where you are in your term.

We got a mortgage in principle with our bank when we were moving last year. They sent us a letter stating that they were happy to lend us £XXX extra for the move and port the current mortgage.

We looked at porting our mortgage, we were told our lender would want to reassess the affordability, even if we were not borrowing any more money.

I have recently ported a mortgage with Santander.

The process was basically like applying for a brand new mortgage. I could change anything I wanted to other than the interest rate and remaining fixed term. So I could (and did) change how much I borrowed, how long for and in my case, who was on the mortgage too.

They made the process really easy. Just give them a call to start the process and to see how much you can borrow. But it is like a new application so you have to prove affordability etc like you did the first time.