Mortgage Porting

taylor86

Morning all, hoping there’s someone who can clarify…. We are selling our home and have reserved a new build due to be completed in March. We are porting our mortgage rate and a Halifax advisor originally told us we need to complete on sale and purchase within 12 weeks however yesterday our Halifax mortgage advisor said that’s not the case. We need to complete on sale and apply for the new mortgage in 12 weeks which we have. 

Can anyone confirm which is correct? We’re negotiating dates to move out and I don’t want to risk losing the rate by having more than 12 weeks between completion dates.

Thanks!

amnblog

To port a product the new mortgage application must complete simultaneously with redemption of the current mortgage. The conveyancer must indicate a product is being ported when they obtain a redemption statement for the existing mortgage; the statement will then explain that the ERC does not need to be included in the redemption monies.

If the amount to be ported to a new loan is lower than the amount currently on the product the full ERC will need to be paid upon redemption, but a partial refund of the ERC will be arranged following redemption on a pro rata basis i.e. if £100,000 of £200,000 on the existing product is being ported then 50% of the ERC paid would be refunded.

Within the last 3 months of an ERC period the product does not need to be ported to a new mortgage; as long as the new loan amount is not lower than the existing amount on the product with ERCs, a product from the new current range can be chosen for the new mortgage and the early repayment charge will be waived.

Where a customer sells their property and repays their existing mortgage before they complete on a new purchase, they will incur any ERCs that apply. However, if they apply for a new mortgage with us within three months of repaying their existing mortgage, while they cannot port and would choose a new product from the current range at that time, once the new mortgage has completed we will process a refund of the ERC.

taylor86

Thankyou for your reply, that is helpful information. My question really though is whether or not I am restricted to a 12 week deadline to complete on sale and then purchase with a Halifax port.

I don’t want to lose my rate if my new build gets delayed.

amnblog

As it says, if you repay the current mortgage before you complete on the purchase you cannot port your rate. You can however reclaim early redemption charges within 3 months.