Porting mortgage advice - new build

atlasmm

Hi all,

We’ve had our mortgage around 5yrs and remortgaged once prior. We have a fixed deal due to end 31/07/2027 and have now reserved a new build with an expected completion date of April/May 2027.

Porting seems like our best/only option given the ERC would be triggered if we didn’t. However really unsure on the best thing for us to do so hoping for some advice. Situation is as below:

Situation:

- Purchase price: £363,000

- Deposit: £36,300 (90% LTV)

- Total borrowing: £326,700

- Existing mortgage to port: approx. £236,700 at 4.35% fixed, ending 31/07/2027

- Additional borrowing needed: approx. £90,000

- Expected completion on the new build: April 2027

- Terms we’re considering: 26/28/30 years

Goal:

Both parts of the mortgage to finish on the same date (31/07/27), so that we can remortgage once with a new lender and drop the two-product split.

Options for additional borrowing:

1. A tracker/variable rate running to 31/07/27 ensuring no ERC
2. Fixed rate with a matched end date of 31/07/27 (if lender would offer this). Assume 6.05% no fee. Only a short period involved (3/4 months after completion)
3. A standard 2yr fix, then paying ERC when I remortgage in July 2027 on the additional borrowing. Around £900 (1% ERC on £90k)

Indicative monthly payments until 31/07/27 (existing - 4.35% top-up - 6.05%):

- 26 years: approx. £1,841

- 28 years: approx. £1,776

- 30 years: approx. £1,721

Indicative monthly payments after 31/07/27 (assuming 5.3%)

• 26yrs: approx. £1,930
• 28yrs: approx. £1,867
• 30yrs: approx. £1,814

Questions around timing: (given we will need to remortgage again around April when we’re hopefully moving into new home):

1. What is the porting deadline, and will you extend it if the new build completion is delayed?
2. What happens if completion slips beyond 31/07/2027, when my current fix ends? Can I secure a new product on my current home as a safety net?
3. Is there any minimum ownership period before I can remortgage the new property, and how far ahead can I lock in a new rate?

Typhoon2000

What is the antipated sale price of your house?( how much equity do you have). Will you be selling and moving into rented till your new place is built?

You should get addition borrowing when you obtain your new mortgage. Getting a tracker with no tie in seems the best bet if you aim is to have one product in the end rather than 2. Typically you will need to have owned the house for 6months in order to remortgage, though you can product switch your exiting lender at any time ( when you product ends on 31/07/2027).

Yes you can get a new fix ( with a new ERC) tracker on your existing mortgage if your completion slips beyond 31/07/2027 and you still haven’t sold your existing home.

kingstreet

https://forums.moneysavingexpert.com/discussion/6686157/porting-mortgage-advice-new-build

The most important question here is what lender is this? I can think of a few who will simply offer a whole new product if within x months of the expiry of the current product at the anticipated legal completion (ALC) date. You may also have issues with the ALC on a newbuild as it may exceed the offer expiry of a new product.