What is porting a mortgage and how does it work? - YBS - YBS DXP Prod (2024)

FAQs

What does porting your mortgage mean? ›

Porting a mortgage deal follows the same process as switching to a new deal. In effect, you are asking your lender to re-lend you the money to purchase your new property. When you buy a new home, the likelihood of it costing exactly the same as the house you're selling is low.

As part of transferring (or 'porting') your mortgage deal to a new property, you can borrow the same amount or less. This will be on the same terms as your current mortgage deal. You and your property will need to satisfy our current lending criteria.

When you port a mortgage you effectively pay off your current mortgage and take out a new one, but with the same lender and on the same terms.

It's different from porting your mortgage because you can choose from the whole remortgaging market and the great deals available, rather than staying with your existing provider. However, you could face big costs in terms of early repayment charges, arrangement fees, and charges for your new home loan.

Porting or transferring your mortgage means transferring every aspect of your existing mortgage, including the interest rate, remaining term, amortization, terms and conditions, and mortgage balance, to a new property without penalty.

Porting isn't without its challenges. You'll need to go through a new application process, which could be stressful during a move. If you need additional funds for your new property, you might have to take out a second mortgage at a higher rate, which can complicate your finances.

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.

The main reason that you would not be able to port your equity release is the new property not meeting the lender's criteria. Equity release lenders are becoming more and more flexible with their lending criteria. However, there are still some properties on which they are reluctant to lend.

Your eligible deposits with Yorkshire Building Society are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme.

Most lenders provide a grace period of up to 30 days if the sale and purchase do not happen simultaneously. However, if the delay is longer, then you should expect that the seller will not allow you to port your mortgage.

What is the process to transfer a mortgage? ›

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.

Then you have to pass the lender's affordability criteria. They consider your income, outgoings, debt and credit history before lending to you. If you don't pass their affordability checks, they may refuse to port your mortgage. Even if you're still meeting your monthly mortgage payments.

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.

Mortgage Switch

There is a good chance that you'll be able to find a lower rate with another lender. This is where you would switch your current mortgage balance and remaining amortization over to another lender. This is also known as a mortgage transfer.

In software engineering, porting is the process of adapting software for the purpose of achieving some form of execution in a computing environment that is different from the one that a given program (meant for such execution) was originally designed for (e.g., different CPU, operating system, or third party library).

For a port decrease (new mortgage amount is lower), your rate would likely be the same, but payments may be lower. You may also be required to pay a penalty if the difference between your existing mortgage and new lower amount exceeds your allowable pre-payment privilege (usually 10-20% annual lump sum is allowed).

Porting is generally a permanent means of moving a phone number to another provider, as the old account associated with the number will be closed. Compare this to forwarding, where the number keeps its old account association, but is forwarding to another number or person instead.