Moving house (porting)
If your client has a mortgage with us, they can transfer the mortgage to another property, providing that certain criteria is met.
You can use our affordability calculator to ascertain if this is affordable for your client before making a recommendation and applying. If your client isn’t reducing their mortgage balance when they move property, an early repayment charge (ERC) won’t be applied. If your client needs to borrow more to buy their new property, we can consider this at the same time. An ERC will not apply if the sale and purchase transaction happens simultaneously. If not completed at the same time, an ERC will be payable on redemption, however, this will be refunded if completion of the new property happens within 6 months.
How much can be borrowed?
For Residential mortgages we can consider lending up to 95% subject to criteria. This may be reduced if there is any of the following:
- Interest-only lending
- New build house, flat or maisonette
- Property is a flat or maisonette
What rates are available?
If we agree any additional borrowing, it will not be based on the product and interest rates offered for new business. The additional borrowing will be based on our range of Additional Borrowing Rates, which can be found in the link below. These interest rates change over time and they may be higher than your client's existing rate on their main mortgage. Therefore it is important that you and your client review our rates prior to submitting an application to check that the required product is still available. Some of our rates carry an application fee, but we also offer the option of fee-free products.
View Residential and Buy To Let Further Advance Interest Rates (PDF)
How much will it cost?
We usually charge a Porting fee to transfer mortgages to another property (see Literature page for Tariff).
A valuation fee will always be chargeable for porting, which is a variable fee based on estimated property value.
If we agree to any additional borrowing, this will be an amount negotiated with the client.
Conditions for early repayment charges
- If your client has paid off their old mortgage and doesn’t take up their new property immediately, there will be an early repayment charge on redemption. The charge will then be refunded when the new purchase is completed, as long as the time between redemption and purchase is no longer than 6 months
- If the new mortgage is smaller than the previous one, there may be a pro-rata early repayment charge
- If the existing mortgage is not taken to the new property we will treat this as a completely separate arrangement. An early repayment charge will have to be paid.
Does new borrowing have to be on the same term as the existing mortgage?
No, however, the term on the additional borrowing must not be longer than the remaining term on the existing mortgage account. Your client can change the term on their existing Mortgage as part of your review, subject to meeting criteria.
If your client would like the term of the additional loan to be the same as the existing mortgage account, you should reduce the term on the additional borrowing by 4 months to ensure that the term doesn't exceed the term of the main mortgage.
Will I receive a procuration fee?
Yes, we will pay a procuration fee for ports of 0.3% of the total amount being ported plus any additional borrowing that is approved and lent to your client.
Transitional arrangement
There are borrowers who are currently maintaining monthly payments which demonstrates that their mortgage is affordable, but on assessment would fail the standard affordability assessment. To ensure the continued fair treatment of customers, the Bank applies transitional arrangements provisions under MCOB 11.7, If you feel your client would benefit from a Transitional Arrangement, they will need to contact us directly on 08000 288 288 (Call charges) so that we can understand your client’s current position and circumstances, before agreeing the best way in which to support your client.
What if my client is approaching maturity and would also like to do a Product Transfer?
You will only be able to request Product Transfer and Additional Loan variations separately. So once affordability for an additional Loan has been established, you will need to consider in which order to progress the variations to provide the best outcome for your client. If it will be in the client's best interest to complete a Product Transfer and Additional Loan simultaneously, your client must be referred to Bank directly to progress a combined Product Transfer and Further Advance.
You will only be able to request Product Transfer, Port and ToE variations separately. You will need to consider in which order to progress the variations to provide the best outcome for your client.
How do I apply?
Please click on the link below to see how you can apply for a Port with additional lending on behalf of your client.