Porting Mortgage - New Build Homes

mpa91

Hi All, I am a home owner who has recently been exploring the possibility of moving out of central London and have found a number of new build properties that I would consider purchasing. Most developers I have spoken to require buyers to be proceedable (sold stc or chain free) before being able to reserve a property, which can take place up to 6 months prior to completion. My dilemma is that the mortgage deal I have on my existing flat is in place until September 2025 and I would incur an ERC of 5% of the outstanding balance if I paid it off early. It is portable but I don’t see how I would be able to port my mortgage if I’m expected to sell my current property ahead of completion on the new property. Is my understanding correct or is anyone aware of a workaround that would mean I could port a mortgage in such a case and not incur the ERC?
Thanks in advance.

K_S

@mpa91 Depends on the lender but many will allow a "grace period" between the completion of your sale and the completion of your onward purchase. You will still need to pay the ERC upon sale and then get it refunded as long as the onward purchase happens within a a specified period (usually X months).