Mortgage Porting

inquisitivewanderer

Hi,
I am in a fixed-rate mortgage, of which the fixed-rate runs for approx another 4 years.
I would like to sell my house and move to something bigger in order to accommodate an expanding family & mother-in-law potentially moving in.
I know if I sell my house and move, I would have to pay the mortgage back, and therefore incur almost a £4k early repayment charge.

With the current situation around COVID19, there is a lack of bigger properties in my area, therefore although I could potentially sell my property, I wouldn't necessarily have anywhere to move into right away.

I know banks will sometimes allow a certain period of time to complete on a mortgage on the property you're moving into. So I have a couple of questions to gauge folks opinions based on their experiences/knowledge.

1) If I sold my house, but couldn't move into the purchased property right away, therefore couldn't complete on the purchase, would the bank normally allow a grace period of some kind where they wouldn't charge the early repayment fee? E.g. give us 90 days to complete before charging the early repayment fee.

2) And, if I sold my house, but hadn't found a property to move into, again, would the bank potentially give me a fixed amount of time to find another property before charging the early repayment fee?

Thanks,
L.

Thrugelmir

The fee will be charged when you sell the property irrespective of what the lender might allow with regards to the future. The lender isn't going to want the hassle of recovering the money after the event. People will attempt to take advantage if it were allowed. 

wayneski100

I am in a similar situation and was told by my mortgage provider (Skipton), that if we sell ours on the same day as we complete the new sale there is no penalty charged. However, if not you would have to pay the early repayment fee. BUT... Skipton stated that should we complete the new sale within 6 months, the fee would be returned.

amnblog

Some lenders will give you a window during which you can get a refund on your early redemption penalty.  This refund comes back when you take new lending on the new property. OtherS however, do not offer this option. Check with your own.

sarmia

We recently ported our. HSBC mortgage. They will refund if completion on the next purchase happens within 6 months.