It is sometimes possible to take a product rate with you to a new mortgage. We sometimes call this 'porting'. Your offer letter will say if any of your product rates can be taken to a new mortgage.
What does porting mean?
Porting means taking a product rate and the early repayment charge with you to another mortgage with the same lender.
You may be able to take the product and early repayment charge to the new mortgage for the amount that you currently owe on that product. If you are borrowing more, you will need to have a new product for the extra amount you borrow.
If you are borrowing less than the amount you owe on the product and the offer you have for your old mortgage says there is an early repayment charge, then you will have to pay an early repayment charge on the difference.
When will I not be able to port?
You can only take your product rate to a new loan if your offer letter says so.
The product rate can only be taken to a new loan while the product rate period(s) applies. You cannot take your product once you are paying interest at the lender variable rate that applies to that part of your mortgage.
We will decide whether to offer you a new mortgage based on our lending policies at the time you apply. If we do not offer you a new mortgage, you cannot port your product. Also, if you repay your existing mortgage, you will still have to pay early repayment charges.
What if I repay my existing mortgage before I apply for a new mortgage?
If you sell your property but are not yet ready to buy another, you will need to repay your existing mortgage. This means you will have to pay any early repayment charges that apply. However, if you apply for a new mortgage with us within three months of repaying your existing mortgage, you can take your old product rate with you to your new mortgage. However, if you apply for a new mortgage with us within three months of repaying your existing mortgage, you may be able to take your old product rate with you to your new mortgage.
Once your new mortgage has started, you can apply to us for a refund of the early repayment charge.
This is a concession and it may not always be available, so please ask about it before you sell your property.