Porting mortgage after selling first

hellywelly84

A bit of a conplicated one. We sold our property in September and had to pay a exit fee. We then found a new property (higher value) and were told we still had 3 months to  port the mortgage from santander so we could get that rate and the repayment charge refunded. The broker said we would pay the lower interest rate on that part (so essentially 2 mortgages) until it ends in feb 2023 and then it would all go on to the same rate as one mortgage. Got our offer today and it says from feb 23 that part of the mortgage will move to variable rate (poss 9%). If thats the case we may aswell not bother its totally unaffordable. Plus that part of the mortgage has been settled in full with the sale. Im so confused and anxious now. Waiting to talk to broker...but is this easy enough to solve??

housebuyer143

hellywelly84 said:

A bit of a conplicated one. We sold our property in September and had to pay a exit fee. We then found a new property (higher value) and were told we still had 3 months to  port the mortgage from santander so we could get that rate and the repayment charge refunded. The broker said we would pay the lower interest rate on that part (so essentially 2 mortgages) until it ends in feb 2023 and then it would all go on to the same rate as one mortgage. Got our offer today and it says from feb 23 that part of the mortgage will move to variable rate (poss 9%). If thats the case we may aswell not bother its totally unaffordable. Plus that part of the mortgage has been settled in full with the sale. Im so confused and anxious now. Waiting to talk to broker...but is this easy enough to solve??

That's right, you will be required to remortgage that part in February or go on variable. Having too mortgages that finish at different times is hassle and probably more expensive. 
How was much was the ERC? If it wasn't much I would be tempted to just get a whole new mortgage and get your offer from the cheapest in the market rather than being stuck with Santander.

JMA74

Santander should allow you to take thr whole lot on a single product and still refund the previously paid erc.  Would likely be easier

K_S

@hellywelly84 What JMA said. From what I can recall, with Santander, if you have less than 6 months (at the point of application) to the end of the fix, you can choose to have the whole mortgage on a single part and yet avoid ERC on the current fix.

I don't know if that option is still available at this point given that you've already applied to port but I would think it should be possible.

hellywelly84 said:

A bit of a conplicated one. We sold our property in September and had to pay a exit fee. We then found a new property (higher value) and were told we still had 3 months to  port the mortgage from santander so we could get that rate and the repayment charge refunded. The broker said we would pay the lower interest rate on that part (so essentially 2 mortgages) until it ends in feb 2023 and then it would all go on to the same rate as one mortgage. Got our offer today and it says from feb 23 that part of the mortgage will move to variable rate (poss 9%). If thats the case we may aswell not bother its totally unaffordable. Plus that part of the mortgage has been settled in full with the sale. Im so confused and anxious now. Waiting to talk to broker...but is this easy enough to solve??

hellywelly84

Thanks @housebuyer143 we didnt have to stick with santander. Its just if we did we would get our early repayment charge back but dont even think we will complete in time. Your right the we will have to fix the mortgage when we complete...it works out more expensive even though the broker thinks not. Not happy but what can you do.  Hoping that rates may reduce slightly towards the end of the year as the news is reporting...🤞