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If you’re an HSBC mortgage customer looking to move home, you may be able to port your mortgage to the new property. In this guide, we’ll explain eligibility, how the process works, and things you should consider.
Can I port my HSBC mortgage?
The vast majority of HSBC mortgages are, in principle, portable; however, there are some exceptions. It’s worth checking the terms of your mortgage for certainty. While the mortgage itself may have the option to be ported, there are no guarantees that you will qualify for a new mortgage with your current lender.
The application is re-underwritten at the point of application, and just because you qualified previously doesn’t mean you will again. Changes in lender criteria, as well as your own circumstances such as income or credit score, can impact your chances. It’s always important to check your eligibility as a broker at the earliest opportunity.
HSBC Porting criteria
There are reasons why you may not be able to port in some instances. For example, your credit score. Just because they granted a mortgage previously, you still need to have maintained a good credit score when porting your mortgage to a new home. The lender may also have changed thresholds for credit score since your original mortgage application.
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Increases in loan-to-value may alter the level of checks. For example, a first mortgage at £50k on a £100k property (50% LTV), and the next property with a £90k mortgage on a £110k property (81% LTV) may have higher score requirements.
Property; the lender may not lend on the property you want to move to, for example, a short lease, flat above commercial, or structural issues. Other lenders may be more lenient on certain property types.
Affordability: You will undergo affordability checks. Policy may have changed or your circumstances may have. Ultimately, plenty of people can port, but it’s not a given, as some of the examples above evidence.”
How do I transfer my HSBC mortgage to a new property?
The process of porting an HSBC mortgage is as follows:
- Book an appointment with a mortgage advisor, either an independent broker or directly through HSBC. A whole-of-market broker will consider both HSBC and other lenders.
- Calculate the equity in your property, moving costs, and the amount of mortgage you require for the new home.
- Determine if porting is the right option for you compared to other alternatives.
- Calculate the costs of borrowing, including both on the existing mortgage and any additional borrowing.
- Secure a decision in principle. A common misconception is that an AIP is not required for porting applications.
- Find a property and have your offer accepted. Then, apply for a full mortgage application. A mortgage offer typically takes 10 days to 2 weeks to be issued.
What are the benefits of porting?
The potential benefits of porting an HSBC mortgage include:
Lower rates: If mortgage rates have increased since you took out your original mortgage, porting allows you to keep your existing lower rate, potentially saving you money on interest payments.
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Save on exit fees: By porting your mortgage, you can avoid paying early repayment charges or exit fees that might apply if you were to switch lenders.
Streamlined process: Porting your mortgage with HSBC can be a more straightforward process compared to applying for a new mortgage with a different lender. This can save you time and hassle, as much of your financial information is already on file with HSBC.
What are the considerations?
When considering porting your HSBC mortgage, here are some important considerations:
1. Is your existing mortgage deal still suitable? Evaluate whether your current mortgage terms, such as interest rate and repayment terms, align with your financial goals and circumstances.
2. Have rates decreased since you applied? Compare your current mortgage rate with current market rates. If rates have significantly decreased, it might be worth paying an exit fee to leave your current lender if the savings from a lower rate outweigh the costs.
3. Can you borrow enough with your current lender? Assess whether HSBC is willing to lend you the amount you need for your new property. If not, consider if another lender elsewhere can offer you the required amount based on your circumstances.
4. Multiple sub-accounts: If you’re borrowing additional funds, you may have multiple sub-accounts with different interest rates. This can complicate remortgaging in the future if the end dates of your product rates don’t align.
5. Evaluate the pros and cons: There are various factors to consider when deciding whether to port your mortgage, including interest rates, fees, borrowing limits, and future flexibility. Assess these factors in relation to your specific circumstances and available options at the time.
Ultimately, the decision to port your HSBC mortgage depends on your individual situation and financial objectives. It’s essential to carefully weigh the benefits and drawbacks before making a decision.
Do I need to pay fees to port my HSBC mortgage?
While the home moving process may involve some mortgage fees, there are currently none that are specific to porting. For example if you are borrowing additionally you may choose a product which has an arrangement fee or valuation, however this isn’t exclusive to porting deals.
Can I move my HSBC mortgage and borrow more money?
Yes, it’s possible to move home and borrow additional funds. This will be subject to there being sufficient equity in the property and the lender deeming you to be able to afford it. HSBC usually offers income multiples of 4-5 times. However, they do offer up to 5.5 for certain borrowers, usually higher earners above £75k per annum. Also, subject usually to a minimum 5-10% deposit depending on criteria.
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How can a broker help?
While it’s possible to port an HSBC mortgage directly, you will only have access to HSBC direct products. A broker can explore whole-of-market options and still apply on your behalf, whether porting with HSBC or any other lender. They can assist with the whole process and may have access to exclusive rates better than those offered directly.
Do I have to pay exit fees when porting?
Are all HSBC mortgages portable?
Not all HSBC mortgages are portable; most are subject to eligibility, but some scheme mortgages or particularly old products may not be, including standard variable mortgages.
Can I port my buy to let mortgage?
Many.buy to let hsbc mortgages are probable although you will still need to meet criteria, minimum deposits and rental stress tests on the property. It’s important to check your mortgage terms to ensure they at portable and if so, on what terms.
Can I be declined my porting mortgage?
Yes, porting applications do not ensure guaranteed acceptance and regular mortgage checks are still required. Those looking to port the same or less than they currently owe may have less stringent checks
HSBC have declined my mortgage application, what can I do?
Firstly, check why? Is it affordability, credit check, criteria. Once established you could look at other lender options, see if borrowing less is an option or potentially appealing the decision.
Do I need a good credit score to transfer my HSBC mortgage?
HSBC usually insist on having reasonable credit, they are not known for being comfortable with high levels of adverse credit. Those porting their existing mortgages with no additional borrowing may have slightly more leniency.
Can an HSBC mortgage be ported?
Yes, subject to affordability, eligibility & credit score.
Are exit fees payable when porting a mortgage?
It depends on whether you are overpaying your mortgage. For example, if you keep the same amount or similar to your current balance, you may not incur any charges. However, if you overpay, you may pay on the amount you overpay.
For instance, if you have a £100,000 mortgage on your current home and move to take out a £50,000 mortgage, the £50,000 difference may be classified as overpayment and may qualify for early repayment charges (ERCs) on the £50k overpaid.”
Can I add someone on when porting a mortgage?
Yes. You can potentially add or remove someone from a mortgage when porting, assuming both borrowers when moving meet the lender’s credit criteria and affordability checks at the time of application.
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