Porting with additional borrowing
If you need to borrow more than the amount on your existing mortgage.
You can port your existing mortgage product to all or part of the mortgage balance. But, for the outstanding amount, the ported interest rate doesn't apply. You will need to choose a new mortgage product or deal to cover it.
The equity from your existing property can go towards the new mortgage loan amount.
You don’t have to pay an ERC with additional borrowing.
Additional borrowing is subject to meeting our lending criteria.
For example:
Your existing property value is £200,000, with an existing mortgage loan of £125,000. From the sale of your existing property, there is £75,000 equity.
The new property you want to buy is £350,000.
£125,000 of the existing mortgage is ported with the existing product rate.
You need to borrow more on a new mortgage loan to cover the rest of the new property amount. £75,000 of the equity is included from your existing property sale, plus £150,000 is borrowed on a new mortgage loan to make up the new property price.
Partial Port (Borrowing less)
If you need to borrow less than the amount on your existing mortgage. You can port the mortgage product to the smaller loan amount.
However, the difference must be repaid on completion of the new loan, and an ERC will apply to this amount.
Your existing property value is £200,000 with an existing mortgage loan of £150,000. From the sale of your existing property, there is £50,000 equity.
The new property you want to buy is £150,000.
£100,000 of the existing mortgage is ported to the new property.
£50,000 of the equity is included from the sale of your existing property. This means that the mortgage is reduced to £100,000.
There is £50,000 left on the mortgage loan that is no longer needed and is subject to an Early Repayment Charge.
Like for like
If you need to borrow the same amount that’s left on your existing mortgage, the term is the same and doesn’t require any other changes or new borrowing.
For example:
The new property you want to buy is the same value as your current property at £250,000.
£100,000 of the existing mortgage is ported to the new property.
The existing mortgage loan has not changed, so is ported to the new property.
With Like for like porting, you don’t have to pay an ERC.