What is a portable mortgage?
A portable mortgage is one that can be transferred from your existing home to your new home when you buy a new property. It's one less thing to worry about when you purchase a new property because you have the reassurance of keeping your current interest rate terms and other scheme terms.
Most of our mortgage schemes are portable, but it's worth checking the details of your original mortgage offer to make sure the scheme (or schemes if you've borrowed more or split your borrowing across various rates and terms) are portable, because different schemes have different rules. If you are unsure about your scheme terms and conditions, call us or visit your local branch to talk to one of our expert advisors.
How much can I transfer to my new property?
You can move all or part of your loan on a portable mortgage scheme to your new property, and you may be able to borrow more, subject to our lending criteria and the terms and conditions of your mortgage scheme. The details of this are explained below. If you wish to increase your mortgage, you can choose to borrow up to an additional £5,000 in total on your existing portable mortgage scheme(s). However, please check if there are any exceptions?. If you need to borrow more than this our advisors will be happy to speak to you about borrowing more with one of our current mortgage schemes.
Are there any costs to consider?
Apart from the usual costs associated with buying a new property, you will also have to pay a booking fee and you may have to pay an arrangement fee, if you take out a new mortgage scheme. These fees, if applicable, will be detailed in your Key Facts Illustration.
If you have borrowed additional funds since your initial mortgage, your mortgage will be divided into accounts known as sub-accounts. If you port at least £5,000 from each sub-account you won't have to pay any early repayment charges (ERCs), subject to the requirements of our porting policies. You must, however, complete the purchase of your new property within a given timescale – please see 'Porting policies' below for details of how long you have to port your mortgage.
Our general porting policy
- Where this porting policy applies, you can take your existing scheme(s) to a new property
- The minimum amount that can be ported is £5,000 per sub-account
- The maximum amount that can be ported on the existing scheme(s) is the total balance outstanding at the time you redeem your mortgage, plus up to a total of £5,000. If you require more than £5,000 additional borrowing, all the additional borrowing will need to be on a new mortgage scheme
- The ported mortgage scheme(s) can only be used to purchase a new property, not to remortgage a property you already own
- Completion of the new purchase must be on a working day within six months of redeeming your existing mortgage
- To receive a full refund of any ERCs, the purchase must be completed during the initial/benefit period of the mortgage (such as the first three years of a 3 Year Fixed Rate mortgage), and within six months of redeeming the existing mortgage. The purchase must also be funded by:
- the existing full mortgage balance, or
- a minimum of £5,000 from each sub-account attached to your mortgage and no new borrowing, or
- the full mortgage balance plus a new mortgage scheme1 (or increased funds on an existing Offset mortgage scheme)
1Does not apply to Self-certification mortgages.
Stroud & Swindon mortgage schemes
If your mortgage scheme(s) was taken out with Stroud & Swindon Building Society before 1 October 2011, the following policy will apply:
- You can take your existing scheme(s) to a new property or take out a new mortgage scheme
- The minimum amount that can be ported is £5,000 per sub-account
- The maximum amount that can be ported on the existing scheme(s) is the total balance outstanding at the time you redeem your mortgage, plus up to a total of £5,000. If you require more than £5,000 additional borrowing, all the additional borrowing will need to be on a new mortgage scheme
- The ported mortgage scheme(s) can only be used to purchase a new property, not to remortgage a property you already own
- Completion of the new purchase must be on a working day within twelve months of redeeming your existing mortgage
- To receive a full refund of any ERCs, the purchase must be completed during the initial/benefit period of the mortgage (such as the first three years of a 3 Year Fixed Rate mortgage), and within twelve months of redeeming the existing mortgage. The purchase must also be funded by:
- the full mortgage balance, or
- a minimum of £5,000 from each mortgage scheme attached to your mortgage and no new borrowing, or
- the full mortgage balance plus a new mortgage scheme1
- Where a new scheme has been chosen instead of porting the existing scheme(s), a minimum balance of £5,000 must be taken on the new mortgage scheme
1Does not apply to Self-certification mortgages.
I have a Stroud & Swindon and a Coventry Building Society mortgage scheme
It is possible that both policies could apply to you because each scheme has its own relevant porting policy. For example, if your main loan was with Stroud & Swindon Building Society and you subsequently took out a further advance with Coventry Building Society.
In this case, you will need to complete your new mortgage within six months of redeeming your existing mortgage to benefit from a full refund of any ERCs. Please speak to a mortgage advisor if you require further information.
Are there any exceptions?
Some mortgage types or schemes have specific policies in addition to our porting policies, and these are summarised below.
Offset
If you wish to port your Offset mortgage and borrow more, all additional borrowing must be on your existing Offset mortgage scheme. This is subject to lending criteria and the maximum loan to value that is allowed on your Offset scheme.
Residential Flexx for Term
When porting your Residential Flexx for Term mortgage and borrowing more, you can choose to add to your existing mortgage scheme or take the extra borrowing on a new mortgage scheme. This is subject to lending criteria and the maximum loan to value that is allowed on your Flexx for Term scheme.
MOREgage
If you wish to port your MOREgage and borrow more money, you can add up to £5,000 to your MOREgage mortgage scheme. If you need to borrow more than £5,000 you can apply to borrow all the additional funds at our Standard Variable Rate. Remember, the personal loan element of a MOREgage is not secured on your property and the value and term of the personal loan cannot be changed. You can keep your personal loan when you move, but if you change your mortgage scheme to something other than another MOREgage scheme, your personal loan rate will increase by 5%. Please refer to your original mortgage and loan documents for more details. The unsecured personal loan is not regulated by the Financial Services Authority and is provided in accordance with the Consumer Credit Act.
Self-certification
If you wish to port your Self-certification mortgage, you can transfer up to your total outstanding mortgage balance to your new home. You may also be able to borrow up to an additional £5,000.
Unfortunately your mortgage cannot be ported if you need to borrow more than £5,000 and you'll need to apply for a new Residential mortgage for the full amount required. This will include providing proof of your current income. In this case, fees relating to your new mortgage and any ERCs are payable and non-refundable.
Credit Impaired
When porting your Credit Impaired mortgage, you can transfer up to your total outstanding mortgage balance to your new home. You may also be able to borrow up to an additional £5,000.
Unfortunately your mortgage cannot be ported if you need to borrow more than this and you'll need to apply for a new Residential or Credit Impaired mortgage, where available, for the full amount required. This may include providing proof of your current income. In this case, fees relating to your new mortgage and any ERCs are payable and non-refundable.
Flexible mortgages (with a drawdown facility)
If you wish to port your Flexible mortgage (with a drawdown facility) you may transfer up to your current outstanding mortgage balance, plus the total available amount on the drawdown facility, to buy your new property.
In addition to this, if you need to borrow more, you can apply to add up to a total of £5,000 to your existing scheme(s). If you wish to borrow more than £5,000 above the total of your current outstanding mortgage balance and available drawdown facility, then the extra amount must be taken on an appropriate new Residential or Buy to let Flexible Mortgage scheme (with drawdown facility). Fees relating to the new mortgage scheme will be payable.
Stroud & Swindon Buy to Let mortgages
When porting a buy to let mortgage that was originally arranged through
Stroud & Swindon Building Society, you may transfer up to your current outstanding mortgage balance to purchase a new property.
If you need to borrow more on your mortgage, you can apply to add up to a total of £5,000 to your existing schemes. If you need to borrow more than £5,000 then the extra amount can be taken on a new Stroud & Swindon Buy to Let mortgage scheme or a new Coventry Buy to Let mortgage scheme.
Important
Please remember that we reserve the right to vary the details of our porting policies at any time. Any lending we agree to will be subject to you meeting our lending criteria at the time you apply to port your mortgage and, if applicable, increase your borrowing. We will assess your requirements based on our lending policy, the loan to value limits of the scheme and your ability to meet the repayments on your mortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage.
