Porting Mortgage

[TulipsfromAmsterdam]

Has anyone moved and ported their mortgage? Just wondered how straightforward it is and what is involved. Thanks

Yes, but we were downsizing, our income hadn’t reduced since taking out the original mortgage and we wanted to lend 35% of the property value.

We’ve upsized and ported and will complete next week and exchanged last week. With NatWest. Straightforward yes but obviously as we upsized we had to go through full process of affordability and credit checks again as per any new mortgage.

Yes, very simple! We ported and added more money, was fairly quick to sort out.

I intend to do this. I have spoken to my bank about it and they have explained how it will work and what the costs will look like. As the others have said, very straightforward and worth it in my case to avoid the ERC

Porting is quite restrictive, because the best deal for your property today might not be the best for the next. I spoke to my broker - free, L&C - who was very helpful and said in the majority of cases, porting is not the best solution. He suggested that we have a tracker mortgage for now, and then a new fixed term product when we move. The tracker is around 1%, and no exit fee, so perfect. Speak to a broker and see what they can offer.

Yes - so in our case it was to avoid the early repayment charge - so made total sense. It may not apply to your case in which case speak to a whole of market broker and go for what suits best

We potentially are, if our house purchase goes through within 6 months (renting to break the chain). Purely to avoid early exit fee, although it's only £2k so not the end of the world if it doesn't work out.

Only worth it (unless you have a great deal) if there’s a penalty. You still have to requalify. I lost the house I wanted to buy as seller had to port mortgage (not sure why as I said I’d pay the penalty if it was less than the stamp duty saving, but it was more because they were self employed, which didn’t make sense). I couldn’t wait for them indefinitely so pulled out and found another, and of course this meant when they did eventually find something they had no buyer, so ultimately stayed put!

We had 2 years left with a nice £3k ERC. We've ported and got a 2 year fixed rate so we will be able to remortgage in 2 years time. Might not have been the cheapest but it's only for 2 years and we didn't want to pay the early repayment charge. Was really easy to do as well!

Thanks for replies. Going to speak to bank as only 1 year in to a 5 year fixed rate and seems straightforward enough.

It was treated in effect as a new application, even though we weren't increasing the mortgage. We were using cash for the price difference and they were very demanding of access to all our bank account details, not just the one that showed the cash needed.

It was a small mortgage though and we are on a tracker rate so unlikely to get better elsewhere.

A flipping nightmare in my experience. What should be simple as moving from a house with 70% LTV to house with only 30% LTV and using cash to make up the difference has involved lengthy process of us providing lots of financial information, far more than we have ever been asked for before (including when a FTB!) and now after process was nearly complete they have decided they want to do a valuation survey. We were originally due to exchange tomorrow but mortgage company aren’t surveying property now till Tomorrow. I am not using them again for next mortgage

Depends on your LTV. I'm porting the mortgage from a house I sold a month ago to my new property which will complete goodness knows when

I'm almost doubling the old mortgage and have a high LTV, so having spoken to a broker, porting gets me the best interest rate, as since Covid happened lenders are more nervous, plus I'd like to get my not insignificant ERC back.

The process seems to be straightforward so far, and they have been extremely meticulous in scrutinising bank statements and payslips, so it's almost like a new application. This is with one of the largest high street lenders in the UK.

You need to work out whether your ERC saving is worth staying, or if you can get a better all in rate with someone else. At only 1 year into a 5 year deal, your ERC is likely to be quite high, unless your original mortgage was very low.