HSBC Mortgage Porting
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Many people have a plan to move home but have a fixed term mortgage on an existing property and don’t know where to start the process. If you have a mortgage with HSBC on your current home, HSBC offers existing borrowers the option to port their current mortgage to a new home. Many home movers worry about losing their low rate mortgage or having to pay early repayment shares if they break the mortgage early. They may not be aware of the mortgage porting option with HSBC, which means that their current mortgage can be taken to a new property they want to purchase.
What is a Mortgage Porting?
Mortgage porting is moving your current mortgage to your new home. While keeping the same mortgage terms and conditions throughout the fixed term of your mortgage. Not all the mortgages are portable, as it can depend on a couple of factors.
How to Port A HSBC Mortgage?
Before you start the process, it is important to understand that a having a current mortgage does not necessarily mean that you are entitled to port a mortgage to your new house. Most HSBC mortgages are portable to a new property. The best way to get started is to talk to your mortgage broker (like us at Marianna FS) and let them work on the options you may have. You can also talk to HSBC directly and they can guide you about porting a mortgage.
Mortgage porting can be straight forward if you are doing a similar mortgage from your current property to a new one and there are no changes in your circumstances. But an additional top up loan required for bigger properties may need additional documents and income, with a spending assessment form from the bank.
Once your application is sent to the lender, they will conduct a thorough credit check and financial assessment of your income and your spending. Your bank will look for any changes in your financial circumstances since you got your existing mortgage.
If HSBC is happy with your income assessment and after a satisfactory valuation of the new property, the bank will issue your mortgage offer.
However, your bank could decline your porting application for many reasons, which we will touch on later.
Important Factors To Consider When Porting HSBC Mortgage.
Income
Porting your mortgage may get difficult if your income or your employment type has change recently or after having a mortgage on a property. You may not fit the lending criteria of HSBC which means the lender could decline the application due to the change in income.
Deposit
Your loan-to-value (LTV) may change while porting your mortgage, depending on the value of your new property and your deposit amount. Property price and deposit amount will determine the loan to
value. LTV will have an impact on your mortgage rate and on the amount you want to borrow. If you are going for a bigger mortgage, the lender may ask for a bigger deposit.
Credit Scoring
Your credit scoring will have a major impact on your application. HSBC do not like borrowers with poor credit rating. If your credit rating has gone down it will affect the mortgage porting application with HSBC.
Additional Cost
Mortgage porting could involve extra costs like legal costs, valuation fees, your mortgage broker charges, stamp duty and the moving cost. Always calculate every charge involved in your home move avoiding any last-minute surprises. You could seek advice from a fee free mortgage broker firm, like MariannaFS, to resolve any discrepancies/queries. We’re happy to help!
Should I Go Direct to HSBC or Use a Mortgage Broker?
Many mortgage borrowers ask how long a mortgage application take through mortgage broker?
Going direct to a local high street bank chain, of HSBC, may seem a lot quicker and easier for mortgage porting advice. Even calling customer service over the phone may not get the prompt and quality advice you would hope for.
In both cases, you will wait longer to submit the mortgage application, respond to the queries from the lender and get approval. Going directly to the bank is always longer than going to a mortgage advisor.
This boils down to many reasons, one of which is that mortgage brokers are highly aware of the mortgage market. Our Brokers at MariannaFS have the expertise that would help to prepare mortgage porting applications a lot quicker.
Our team will check the current mortgage offer, submit the mortgage porting application for you and deal with the required paperwork with HSBC.
Always remember that your bank may not be open 24/7, but mortgage brokers are. Your bank won’t offer an alternative if your application is declined, but your mortgage broker does just that.
And most importantly, not all mortgage brokers charge fees. MariannaFS can help you with mortgage porting application. Get in touch to see how we can help you without charging broker fees.
Benefits of Mortgage Porting with HSBC.
Keep the same rate
When you port your current mortgage to a new property, you can keep the same mortgage rate, along with the current terms and interest rate. Porting your mortgage can save you from higher mortgage rates.
No early repayment charges to pay
Paying off your mortgage early could trigger early repayment charges but porting your current fixed rate mortgage to a new property lets you keep your existing mortgage rate, while avoiding early repayment charges.
Important Factors About HSBC Porting
Porting your mortgage with HSBC can give you several advantages, but a few factors you should consider before moving forward with porting are below.
Change in current financial circumstances
Porting your mortgage may get difficult if your financial circumstances have had changes since you purchased your older property. Speak to MariannaFS before making your application.
Loan-to-value
Your loan-to-value (LTV) may change while porting your mortgage, depending on the value of your new property.
Property Value
Your new property price with HSBC will influence the overall arrangement. You may also need to pay a nominal valuation fee to get your property assessed. Higher property price means you may need to pay more in a deposit or borrow more.
HSBC ERC Calculation Examples:
Let’s explore some detailed scenarios of HSBC mortgage porting ERC payables.
Scenario: Porting the SAME mortgage amount from the current property to the new one.
Current mortgage: £100,000 (fixed rate deal)
And if you are Porting £100,000 to a new property, there is no ERC payable
ERC payable: £0
(Reason: No mortgage amount has been redeemed; therefore, no ERC payable)
Complex Borrowing & Sub-accounts
Complex Borrowing & Sub-accounts:
When you have a mortgage with HSBC, your borrowing can sometimes be structured into multiple smaller loans, known as sub-accounts, each with its own interest rate, repayment terms, or expiry dates.
This structure typically arises if you:
- Borrow additional funds at different times.
- Port your mortgage and borrow extra funds on top of your original amount.
- Have combined different mortgage products (e.g., fixed rate, tracker rate) into one overall loan.
MariannaFS offers fee-free mortgage advice.
Get in touch with us to get your mortgage porting sorted in no time.
Related Guides
HSBC Remortgage Rates
HSBC Product Transfer Rates
HSBC Mortgage In Principle
Mortgage Application Through Broker.
What Documents Required to Remortgage
