How does porting work?

ferry

Hi. After some advice please on how porting our mortgage would work for us.
We are looking to move house and hope to take our rate with us and Santander have confirmed our mortgage is portable.
The property however is approx 10k more than the one we are selling.
Can we please get advise on how to proceed with this with a mortgage currently in place-how the process would work etc?


Thanks as usual

kingstreet

When you sell, your current mortgage is repaid.

You apply to your current lender for a new mortgage for the amount you need to borrow.

The rate from the old mortgage will be transferred to the new one at completion.

At application, you pick a new product for any increased borrowings so after completion, you will have a mortgage split across two sub-accounts, one for the old rate for the existing mortgage amount and one for the new rate, lower amount.

You cannot transfer a mortgage from one property to another but you can transfer the rate and terms from one mortgage to another.

ferry

Thank you much clearer.

scoops82

Is porting allowed within a fixed deal (or is that when it is mainly done?)

kingstreet

scoops82 wrote: »

Is porting allowed within a fixed deal (or is that when it is mainly done?)

You would usually port to avoid having to pay early repayment penalties and as these are most associated with fixed rates I'd say yes to your question.