Fee to leave a mortgage

mrginge

fudge7000 wrote: »

mrginge - I'm talking about taking another loan to pay off the mortgage at the same time as buying the new house, so I can still port the mortgage, so the house wouldn't be sold at the time I paid off the first mortgage.

This doesn't make any sense.

fudge7000

Mrginge - it was suggested further up, that if i "re-mortgaged" the initial loan with other finance at the same time that I took out the new loan, then the mortgage could still be ported (currently, as it's not happening at the same time, i have to pay the fee) to the new loan. - post #2 and #5, I was just exploring that possibility, however I'm not sure if it would work or not

minimike2

It is pretty standard that to port a rate it has to be onto a property that you are purchasing at the same time as selling your previous property.

Some lenders, including Santander allow a grace period where you can keep the rate if the new mortgage completes within a set time of the old property selling (say 30 days as an example) and some further still allow a refund of the ERC if your new mortgage completes within a set time of redemption of the previous one regardless of if the rate gets ported.

What you are looking to however, is keep hold of your mortgage deal, and then later port it onto a property which you will already own. You cannot do this - It must be moved onto the new property as part of the application for the mortgage to purchase it.


It is for this reason - all the potential different scenarios, that the lender doesn't have to do into all the fine detail about porting your rate when the illustration is given to you and that you will find something along the lines of "subject to eligibility" or "subject to our criteria" or words to that effect in the section about porting on the KFI.

Also what you are saying about remortgaging the current loan in order to port the existing loan - This is just another way of saying you are going to get bridging finance but try and do it via a residential mortgage product. No mortgage lender will allow this on a residential mortgage product as your reason for the loan will be bridging.

mrginge

What he said ^^^^

banks4u

Thing is find out from Santander this: basically most lenders will charge a Repayment Fee but if the mortgage isn't done on the same day but 30 days later for instance, you will have the fee refunded. Makes sense to me that the lender would want to protect their money. You should find out from santander

banks4u

It's actually 3 months https://www.santanderforintermediaries.co.uk/products-and-criteria/moving-home/

fudge7000

I think what everyone is saying, is that there's no way around the 7k fee... Unfortunately. Thanks for all your help though, I wish I'd asked in more detail when I took the mortgage out what the restrictions were. You live and learn I suppose!

AnotherJoe

fudge7000 wrote: »

I think what everyone is saying, is that there's no way around the 7k fee... Unfortunately. Thanks for all your help though, I wish I'd asked in more detail when I took the mortgage out what the restrictions were. You live and learn I suppose!

It's not really a restriction. It's such a fundamental thing that they don't spell out you can't do what you want because no one does. Santanders rules are actually about as lax as you'd get but the problem is the way you've chosen to sell and buy.

The only way round it would have been not to get such a long term fix with a big ERC when planning a move. Even if the lender allows it you are restricted to their products and a lot can change in 2-3 years. That's your live and learn, not looking at the details of Santanders mortgage.

JimmyTheWig

fudge7000 wrote: »

Mrginge - it was suggested further up, that if i "re-mortgaged" the initial loan with other finance at the same time that I took out the new loan, then the mortgage could still be ported (currently, as it's not happening at the same time, i have to pay the fee) to the new loan. - post #2 and #5, I was just exploring that possibility, however I'm not sure if it would work or not

I believe the suggestion was to find some other way to buy the new property, then when you sell your current one you could (possibly) port your mortgage to the new property and pay off the other borrowing.

minimike2

JimmyTheWig wrote: »

I believe the suggestion was to find some other way to buy the new property, then when you sell your current one you could (possibly) port your mortgage to the new property and pay off the other borrowing.

That can't be done. The product can not be ported onto an already owned property.