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.
For Residential mortgages we can lend up to the maximum of the original Loan To Value (LTV) percentage, or 90% of the new property value, whichever is lower. This may be reduced if there is any of the following:
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.
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.
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.
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.
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 01752 236 550 (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.
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.
Please click on the link below to see how you can apply for a Port with additional lending on behalf of your client.