Porting Mortgage

HeyThere_2

Hi folks.

We are moving house soon. Our current mortgage deal is up in September and carries an early repayment charge of £3000 :mad:

We have worked out it is financially better to move our existing mortgage to the new house and add the additional borrowing with our current provider rather than paying this early repayment fee and starting over with a new provider.

All good, or so we thought.

We want to move in 22nd April, so just 5weeks from now...
When we called Tesco (who our current mortgage is with) they say it can take 5 to 8 weeks to arrange this..

Does anyone know how long it typically takes to port a mortgage and add additional borrowing with your current provider (any Tesco specific info would be great)

Thanks in advance for your help :beer:

LeoTLion

We ported a Woolwich mortgage with additional borrowing last October. It took approx 4 weeks from application to offer. The slowest part of the process was the valuation, which I think took around 11 days from instruction.

Porting with additional borrowing is essentially just a new mortgage application, so no shorter than if you were a new customer.

I can't offer any Tesco specific advice. Sorry.

Thrugelmir

HeyThere wrote: »

We want to move in 22nd April, so just 5weeks from now...

Completion date is normally set once exchange of contracts has taken place. 5 weeks is optimistic to complete the process. That's only 23 working days.

HeyThere_2

A survey was done on the property in November 2015 so I wasn't sure if they could maybe just use that?

HeyThere_2

You aren't telling me anything I am not 100% aware of. I wasn't asking for opinions regarding the timescale, I was trying to use identify the feasibility

Annisele

If I was in charge of the world, I'd ban the phrase "porting a mortgage". I know that's what everybody calls it - including lenders - but IMO it's misleading. I'd prefer to call it "porting a mortgage rate".

A mortgage is really a loan secured on a property. But it's not secured on any old property; it's secured on the particular property it was taken out to buy. If you want to change the property, you need a new mortgage.

A new mortgage means a whole new application, affordability/credit assessments, and checking the property is a suitable security for a loan (for example, not all lenders will lend on high rise flats). Some of the terms of the old mortgage will carry across to the new one - most notably the rate and the ERC - but it'll still be a new mortgage.

I think it's unlikely the lender will be prepared to rely on a survey that wasn't carried out with their interests in mind, but you could always ask.

It's also worth checking Tescos' criteria if there's anything unusual about your new property. For example, non-standard construction, listed building, high rise flat, next to a takeaway, has Japanese knotweed in the garden, etc. If the property doesn't fit Tescos criteria, you want to work that out as soon as you can.

Thrugelmir

HeyThere wrote: »

You aren't telling me anything I am not 100% aware of. I wasn't asking for opinions regarding the timescale, I was trying to use identify the feasibility

You've provided no facts. Can only comment on what you've said and specifically asked.

HeyThere_2

I didn't needed to provide an explicit outline of facts as the question I was seeking help with was noted at the bottom of my post...

kinger101

HeyThere wrote: »

I didn't needed to provide an explicit outline of facts as the question I was seeking help with was noted at the bottom of my post...

You shouldn't really rebuke people for commenting on related aspects, even if they don't directly answer your question. It was still relevant to your post.

Often on here, people post one thing and discover they've overlooked something else.

Who did the original survey in November 2015? If it wasn't done by a surveyor appointed by Tesco, or at the very least a surveyor they use themselves, I can't imagine them using it. I think Tesco use Countrywide Surveying Services.

kingstreet

Annisele wrote: »

If I was in charge of the world, I'd ban the phrase "porting a mortgage". I know that's what everybody calls it - including lenders - but IMO it's misleading. I'd prefer to call it "porting a mortgage rate".

A mortgage is really a loan secured on a property. But it's not secured on any old property; it's secured on the particular property it was taken out to buy. If you want to change the property, you need a new mortgage.

A new mortgage means a whole new application, affordability/credit assessments, and checking the property is a suitable security for a loan (for example, not all lenders will lend on high rise flats). Some of the terms of the old mortgage will carry across to the new one - most notably the rate and the ERC - but it'll still be a new mortgage.

Spot on. Porting is about rates and not the security or the loan.

The mortgage is the security which ties the homeloan and security property together.

shebu

You may have checked this but my mortgage company (Santander) waives the ERC if you're moving home in the last 3 or 6 months (can't remember which) of your deal. Might save you some money.

Santander arranged the port of my rate in less than 2 weeks. I was reducing my amount, moving to repayment and had a very good loan to value so I don't know if that was a factor but even with the maximum time they quoted it would have only been 3-4 weeks. It does count as a new mortgage and you have to go through all the new mortgage questions/affordability etc.

If you're buying, the sooner you start the process the better! And definitely make sure you have everything in place before you arrange the completion date.

Good luck with your move!