Santander Mortgage Porting
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Most home movers often do not know that their current mortgage can be taken to their new property they want to purchase. If you are thinking of to home move, then the first thing you will want to sort out will be your mortgage.
But always find out if your current mortgage can be ported to your new property. Though not all properties are eligible, Porting is still often seen as very cost effective and can be done a lot quicker than a standard mortgage.
What is Mortgage Porting ?
Mortgage porting meaning transferring current mortgage from existing home to new purchase property while keeping the same benefit of current mortgage and meeting the lenders criteria .
How Does Santander Mortgage Porting Work?
If you have an existing mortgage with Santander and want to retain Santander mortgage rate while purchasing another property, you can approach Santander for mortgage porting.
But before you approach Santander for porting your mortgage, ensure that porting is possible. There are several cases where it is advisable for a borrower to stay on their existing mortgage deal. Consult your mortgage broker and let them assess your financial circumstances. If you are upgrading to a bigger property for example, then either you will have need of a higher deposit to cover the difference in property price and mortgage or you could borrow more from Santander if you fit in the income assessment.
Once you approach Santander, its team will conduct a thorough credit check and assess your financials. The lender will look for any changes in your circumstances since you bought your existing property. If your credit score has dipped or you have accumulated bad debt, Santander may reject your application to port your mortgage.
Furthermore, you will need to confirm if the lender agrees to keep the interest rate and mortgage term the same for the new property. While Santander will not make any major changes if you fit the bill, it may increase your interest rate and change the mortgage terms of your existing deal for the new property purchase.
How Can a Mortgage Broker Help with Santander Mortgage Porting ?
Our mortgage advisors are experts in mortgage porting. Mortgage brokers know the lending criteria of many banks such as Santander which will help you to prepare the porting application. A Mortgage broker can run through the terms of your current mortgage, run the income affordability, and submit the mortgage application for you, saving you a lot of time and effort while getting the approval in no time.
If mortgage porting to Santander is the best option for you or you should look at other options, which your mortgage broker can advise on. For any reason Santander decline the mortgage porting application, your mortgage broker will look for alternative options you may have.
We at MariannaFS offer fee free mortgage advice. Get in touch with us to get your mortgage porting sorted in no time.
Should You Go Direct to Santander for Mortgage Porting ?
Many mortgage borrowers ask how long does a mortgage application take through mortgage broker? They think going directly to their local high street bank may be a lot quicker and easier for mortgage porting advice. You can also try calling customer service over the phone. In both cases you may not know how long it could take to complete the process, or whether it will be completed at all. However, if you want to skip long wait times, it is always better to work with an experienced mortgage broker.
A skilled mortgage broker will have all the information you need about porting your mortgage with Santander. Your broker will guide you in porting your mortgage seamlessly.
What Are the Benefits of Santander Mortgage Porting
Keeping Your Existing Mortgage Rate
When you port your mortgage, you can keep your existing mortgage deal, along with the current terms and interest rate. If you are on a fixed rate this is a lot most helpful. If you are in the middle of your fixed term, porting your mortgage with Santander lets you continue with the same mortgage deal.
Pay No Early Repayment Charges
Porting your mortgage to your new property lets you keep your existing mortgage rate, while avoiding early repayment charges as Santander will wave off the early repayment charges if you port the mortgage.
Borrow More On Mortgage
If you are upgrading while purchasing a bigger property that is more expensive than the current one, Santander helps you borrow more with top-up mortgages. Without affecting the ongoing arrangement, you can borrow more and cover the additional expenses incurred while purchasing an expensive property.
High Flexibility
Moving home is already a time-consuming process. Porting your mortgage gives you the much-needed flexibility and ease in managing your debt.
Important Factors to Consider With Santander Mortgage Porting
Porting your mortgage with Santander 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. If you do not fit with Santander lending criteria, then the lender could decline the application. Consult your broker to help you evaluate the change in your financial circumstances 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. New property price and your deposit will determine the LTV. If the LTV increases, then it will impact the mortgage rates for additional funds, giving you a higher interest rate.
Property Price
Your new property price with Santander 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 deposit or borrow more.
Additional Cost
Mortgage porting could involve extra costs like legal costs, valuation fees and your mortgage broker charges. Your mortgage broker should help give ideas regarding the expenses involved.
You can also save on mortgage broker fees with MariannaFS as we offer fee free mortgage advice.
Get in touch with us to get your mortgage porting sorted in no time.
FAQs
Is there a Penalty for Santander Mortgage Porting?
No, quite the opposite. The primary reason for Santander mortgage porting is to avoid paying a penalty specifically the Early Repayment Charge (ERC). When you are within a fixed-term deal (e.g., a 2 or 5-year fix), leaving that deal early to move to another lender triggers an ERC, which can be hundreds of pounds. Porting is the process that allows you to take your current mortgage, including its interest rate and terms, with you to your new property without having to pay that penalty.
Applicant must be approved for the mortgage on the new property. The applicant will need to go through a full application process again, including credit and affordability checks. If the lender declines your application to port but you still proceed with the house move, you would have to pay off the mortgage, and the ERC would then apply.
How Long Does Santander Mortgage Porting Take?
The timeline for porting a Santander mortgage is essentially the same as a standard new mortgage application for a home move.
A typical timeline can be broken down as follows:
Application to Mortgage Offer: This part usually takes between 2 to 4 weeks. During this time, the lender assesses your application and values the new property, and if they are happy with the overall case, then the mortgage is approved.
Offer to Completion: This is the longest phase and depends entirely on the legal process (searches, enquiries, contracts) for both the property you are selling and the one you are buying. This can take anywhere from 6 to 12 weeks, or even longer, depending on the complexity of the property chain.
