Santander Porting.

mummy2threeboys

HI, wonder if anyone can help please
So I'm thinking porting is the best for us. But I'm confused Sorry we have lived here 20 years and this is only our 2nd time buying, first time seller. The bit it bold reads to me the original mortgage (Now portable) must be paid off a few months after we move in ? Thank you x


Option 1: Keep your current mortgage deal
If you want to keep your current mortgage deal because it’s lower than other mortgage rates available, you can apply to transfer it to your new home. This is known as ‘porting’. Porting applications are subject to our current lending criteria and a full credit assessment.

Also you won’t pay an early repayment charge if you transfer the same amount. If you want to borrow more, you can apply for a new deal on the extra amount from our current mortgage range.

Normally you’d complete on your new home and pay off your old mortgage on the same day. If for some reason you’re unable to do this, you can still take your existing mortgage rate with you, as long as you complete on your new home within three months of paying off your old mortgage.

The only time you can’t is if you’ve got a Flexible Offset mortgage. On this type of mortgage, to take your rate with you, you must complete on your new home and pay off your old mortgage on the same day.

Thrugelmir

Most people complete a sale and purchase on the same day. If your sale was to complete but your purchase didn't. Then the mortgage offer (i.e. the ability to port your existing mortgage to the new property) remains valid for a further 3 months. After which it will lapse.

KnowledgeIsLife

Basically for example you sell your house on 1.1.19 you pay your Santander mortgage off including ERC as there is no guarantee you will complete on a new mortgage with Santander withing 3 months. You have until 1.4.19 to complete on your new property and aslong as you do you can port your mortgage and the ERC will be refunded back if not you lose the ERC and can not keep your existing interest rate and will have to choose a new interest rste. It does not mean you have to pay off your mortgage within 3 months of completion hope this helps.

mummy2threeboys

Thank you both! Now it makes perfect sense, sorry my head is full of fluff ! Have a fab week and thanks for the help.

KnowledgeIsLife

No problem at all if you have any further questions in regards to this feel free to ask I actually work in this department.