Porting a mortgage | Barclays (2024)

FAQs

How hard is it to port a mortgage? ›

Your lender will carry out affordability checks and run a credit search which means there's no guarantee you'll be accepted again, even though you were the first time. If your financial circ*mstances have changed – for example, if you're in a different job and taken a pay cut – you might not qualify.

Most lenders will allow you to borrow more when you port a mortgage. However, there are certain conditions. Firstly, you must qualify for the larger mortgage amount. The lender will requalify you to ensure you can afford the larger mortgage.

How long does it take to port a mortgage? If your lender lets you progress with a mortgage port, moving a mortgage to your new property could take anywhere from 30 days to three months to complete, giving you time to move into your new property.

How much extra you borrow will depend on the amount you sell your current property for and the price of your new home. You may also put some money towards the new home. This is known as equity. The amount left over will be the amount you'll need to borrow on your new mortgage.

The cons of mortgage portability

Another thing to keep in mind is that you may not be able to take advantage of better mortgage rates or terms that are available on the market. If you port your mortgage, you're locked into your existing rates and terms, so you won't have the option to shop around for a better deal.

Bank of America Wells Fargo Chase U.S. Bank PNC Bank First Republic Bank Capital One Quicken Loans Mortgage Porting is the process of transferring your existing mortgage from one property to another. This allows you to keep your current interest rate, term, and other terms and conditions when you move.

Credit checks & change of circ*mstances

If you've missed any mortgage repayments on your current mortgage, you may also find it difficult to port your mortgage as lenders have been known to reject applications for porting in the hopes that you will voluntarily exit your mortgage agreement with them.

Porting your mortgage might be the right choice because: It allows you to keep your current interest rate which may be lower than the new rates curently available. There may not be an Early Repayment Charge (ERC) to pay as you are not breaking your current deal.

Adding your partner's name to your mortgage through remortgaging offers potential benefits like joint ownership and improved borrowing power. However, it's like a whole new application, with joint credit checks and potentially higher rates if their credit score is lower.

In addition, since some servicing companies have different escrow procedures and requirements, the amount that is held in escrow may change. This could result in a small change in the monthly payment amount. A mortgage can be transferred to a new servicing company any number of times during the life of the loan.

How quickly can you switch mortgage? ›

So, how long does it take to switch mortgages? The mortgage switching process typically takes between six to eight weeks. It's important to keep this in mind as you approach the end of your fixed term if you don't want to roll over onto a variable rate.

Changing lenders can take months and may cause delays in closing time. When you switch mortgage, you will need to go through another credit check. You may need to get a new appraisal.

In the first instance you should check that your existing mortgage product is portable. If it is, you can arrange a port in one of two ways: Speak to your current mortgage lender. Discuss your options with a mortgage broker.

If the sale and purchase doesn't happen simultaneously, most lenders offer a period of grace, usually up to 30 days. If the delay is longer, most won't allow you to port your current deal. However, if you opt for a deal with the same lender, they may offer to refund any early repayment charge you've paid.

What is porting your mortgage? Porting your mortgage means taking your existing mortgage—along with its current rate and terms—from your current home to your new home. You can port your mortgage if you're purchasing a new property at the same time you're selling your existing one.

It may suit you if you're still in the fixed term period of your existing mortgage as you won't face the early repayment charges of remortgaging. Porting is also a good idea if you're on an exceptionally good deal with low interest rates and great terms – particularly if the deal doesn't exist to new customers anymore.

If porting, you will still have certain additional fees to pay, including valuation fees, arrangement fees, legal fees and possibly a small exit/transfer fee.

In most circ*mstances, a mortgage can't be transferred from one borrower to another. That's because most lenders and loan types don't allow another borrower to take over payment of an existing mortgage.

To know for sure whether you can port your mortgage you'll need to talk to your mortgage representative. There are some general conditions for being approved for porting your mortgage however. First of all, most lenders will only port a fixed rate mortgage.