Porting Mortgage - Principality

SBD90

I am currently looking at moving home and have 6 months remaining on my mortgage deal with principality. I don't want to pay an early redemption fee so need to port the mortgage to see out the remainder of the initial rate. I owe £100k on my current mortgage on a 4.29% rate and I am wanting to borrow an extra £40k. How straight forward is it with regards to the extra £40k, does it simply get added to the mortgage on the 4.29% rate until the initial rate ends or is it something different. Thanks

kingstreet

No.

You can't port a mortgage, as in transfer a mortgage from one property to another.

On completion of the sale, the current mortgage is repaid by your solicitor.

If Principality will lend to you again (you have to meet current criteria and affordability) you may be able to port the rate from your old mortgage to the new one.

Any increased borrowing is offered on one of the lender's current products, so you end up with one new mortgage, split into two sub-accounts which represent the old borrowing on one rate and the new borrowing on another.

SplanK

kingstreet wrote: »

No.

You can't port a mortgage, as in transfer a mortgage from one property to another.

Eh? That is not what Natwest said to me when I specifically asked the question regarding moving when I moved my mortgage to them as we knew we would be moving within the fixed rate contract!


In our case, the existing mortgage continues, and a separate sub mortgage account gets setup with the additional lending. This sub account does not use the existing rate or length, but runs separately and has its own fixed rate interest rate and time limit!

kingstreet

A mortgage is a deed which ties the homeloan to the security property. For it to be cancelled for the property sale to be permitted, the homeloan has to be repaid to give "unencumbered title on completion."

The convention nowadays is the homeloan is the mortgage and it is to try to deal with this, I use the phraseology I do.

Lender employees are some of the worst I know in how they explain issues which they have no involvement with as this is handled by solicitors and the lender's completion department only.

However, I presume you have a mortgage which has two homeloans within it split into two sub accounts with two amounts/rates being represented. That is the effects of porting a rate from one "mortgage" to another.

SplanK

Fair enough! Although the end result is the same I suppose either way, the existing mortgage gets paid off, then a 2 new accounts get opened, one with the original value, and a 2nd with the additional lending

SBD90

kingstreet wrote: »

No.

You can't port a mortgage, as in transfer a mortgage from one property to another.

On completion of the sale, the current mortgage is repaid by your solicitor.

If Principality will lend to you again (you have to meet current criteria and affordability) you may be able to port the rate from your old mortgage to the new one.

Any increased borrowing is offered on one of the lender's current products, so you end up with one new mortgage, split into two sub-accounts which represent the old borrowing on one rate and the new borrowing on another.

Thanks, so if I were to port the rate over on the £100k until the fixed period ended in 6 months, and was also to borrow an extra £40k on one of their new rates, what would my options be in 6 months time when the fixed deal on the original mortgage comes to an end? Can I remortgage the whole lot?

Thrugelmir

SplanK wrote: »

Fair enough! Although the end result is the same I suppose either way, the existing mortgage gets paid off, then a 2 new accounts get opened, one with the original value, and a 2nd with the additional lending

Confusion arises as what for intents and purposes is a loan is now called a mortgage. Therefore people assume that the mortgage is simply transferred (when ported).

phoenix_w

SBD90 wrote: »

Thanks, so if I were to port the rate over on the £100k until the fixed period ended in 6 months, and was also to borrow an extra £40k on one of their new rates, what would my options be in 6 months time when the fixed deal on the original mortgage comes to an end? Can I remortgage the whole lot?

Principality customer here who has been through a similar thing recently.

After your existing mortgage offer has ended you'll fall back to SVR for that sub account only. You can then remortgage that sub account only. You have to wait for both sub accounts to lapse to SVR if you wish to merge them together or change providers without penalty.

Note that timing can be a PITA here. Our old mortgage offer expired the month we moved to our new property, but we couldn't remortgage that bit until we had made our first payment on the new account which was two calendar months after we moved in. Meant having to pay two months at SVR for the old sub account. Definitely something to factor into your moving calculations!