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Porting is when a borrower moves home and transfers their existing mortgage to the new property.
When porting their mortgage, your client can keep the amount they're borrowing the same or, if they're eligible, they could borrow more. They could also reduce the size of their mortgage (Early Repayment Charge may apply). Skipton pay a full a procuration fee when an existing Skipton mortgage is moved to your client's new property.
In order to port a mortgage the purchase of the new property should happen within 6 months of the sale of the old one (ERCs may be payable if the sale and purchase of the two properties are not simultaneous. The client will have six months to complete the onward purchase to receive a refund). Mortgage porting is subject to underwriting criteria, including affordability at the time of porting, the property itself and the purpose of the loan.
Check your client’s original mortgage offer to see if their mortgage is portable. Most of our products are, but some aren’t. For example, you can't port a residential mortgage to a Buy to Let (BTL) property, but you can port a BTL mortgage/product to a residential application. Alternatively, call us on 0345 601 6683 with your client’s relevant security details and we’ll be able to guide you. By porting their mortgage, your client may avoid the need to pay any Early Repayment Charges (ERCs), however there are cases where these may still need to be paid in part or in full. You should check the original mortgage offer to see if this is the case.
Work out how much your client needs to borrow for their new home. It doesn’t have to be the same amount as their existing mortgage. However, if they’re moving to a more expensive property, they might need to take out additional borrowing. This would be on an interest rate from our available product range at the time, which may be higher than their existing rate, and is subject to eligibility and affordability. The mortgage can also be reduced but an Early Repayment Charge may be payable on the difference in borrowing.
Just like a new mortgage application, you’ll need to check affordability, eligibility and the suitability of the new property. It’s important you key the mortgage illustration first which will allow you to port the existing product, our Broker Support team is ready to help with any of your questions. Your client may also be able to make other changes at the same time as porting, such as amending the term, repayment type and/or from a joint to a single mortgage, or vice versa, subject to criteria.
If the sale and purchase of the two properties are not simultaneous, any ERCs will be payable in full. The client will have six months to complete on the onward purchase to receive a refund of the ERCs.
Yes. But if the new property is not HTB or SO, then any top up would be from our available residential mortgage range at the time.
The existing customer mortgage box needs to be ticked as being ‘repaid’ on completion in the loans section, because porting is treated as a new mortgage.
We will pay a full procuration fee when an existing Skipton mortgage is moved to your client's new property.
