So, you already have a Halifax mortgage, and you’re planning to move home. You might have the option to move or ‘port’ your mortgage to a new property. There are a few factors to consider to determine if it’s viable and if it’s the right decision for you. In this guide, we’ll explain everything you need to know about porting a Halifax mortgage.
Can I transfer my Halifax mortgage?
The mortgage porting process involves repaying the existing mortgage on the first property and reapplying for a mortgage on the new property, with the rate and product then transferred onto the new property.
Most Halifax mortgages are in principle portable; however, the process itself is very similar to any other home mover mortgage and is subject to similar affordability and criteria checks. It’s important to check your eligibility with a mortgage broker if you’re considering moving.
Could I be refused porting my mortgage?
“Yes, it’s possible to have a porting application declined. While you may already have a mortgage with the lender, there are no guarantees when it comes to porting. Several factors could result in a porting application being declined, including:
– Higher loan-to-value borrowing: For example, if you have a £60,000 mortgage on a £100,000 property and try to port the same amount onto a property worth £70,000, the eligibility rules may be different.
– Change in income or circumstances: Since you took out the mortgage, such as loss of earnings, being out of work, or experiencing adverse credit.
– No longer meeting lender criteria: Your circumstances or the property you intend to buy may no longer meet the lender’s criteria.
Can I port a Halifax mortgage and borrow more money?
Yes, subject to affordability and criteria & credit checks. The affordability model is usually very similar for porting applications compared to normal home moving applications. Your mortgage is broken down into separate sub-accounts for the existing mortgage and any additional funds raised.
For example, if you have a £100,000 Halifax mortgage secured at 1.5% fixed until 30th September 2027, and you choose to borrow an additional £50,000 for the new purchase, let’s assume the going rate for additional borrowing at the time of the move is 5% for 2 years. You would have £100,000 at 1.5% until September 30, 2027, and the remaining £50,000 at 5% for 2 years from the point of application.
What terms can I port my mortgage on?
Halifax will usually allow you to change the term, borrowing amount, and potentially the repayment type of the existing mortgage when porting, all subject to affordability, criteria, etc. For example, you may have a £100,000 mortgage over 15 years.
If you’re looking to increase your mortgage to £200,000, however, with increased rates and extra borrowing, you may prefer to extend the term. You could potentially extend the term to 25 years, for example, on both the existing and top-up borrowing, subject to age and criteria, etc.
Can I reduce my borrowing amount when transferring my mortgage?
Yes, it’s possible to reduce your mortgage balance when porting, however, you need to be aware that you may incur exit fees. For example, if your mortgage is £100,000 and you are limited to making only 10% overpayments per year without penalty, if you move and take out a £50,000 mortgage, you may incur early repayment charges on the £40-£50k you’ve overpaid when moving. This is usually most applicable to fixed-rate mortgages.
Do I pay exit fees when porting a mortgage?
Potentially, if you are overpaying on your mortgage by more than the terms of your mortgage allow.
What is the process for porting?
The first stage of the porting process is to speak with an experienced mortgage broker to understand your options, both with your existing lender and compared to the whole market. Once you’ve determined the most suitable deal, it’s then important to secure an Agreement in Principle (AIP).
It’s usually a common misconception that this is not a requirement when porting, although the process is almost exactly the same, with the exception of transferring the rate. After having an offer accepted on a property, you would apply for the full application and secure a mortgage offer after survey and underwriting.
Speak to a Halifax Mortgage Expert
What documents do I need to port my Halifax mortgage?
The documents Halifax usually require for porting include proof of ID and 1-3 months’ payslips for employed applicants. For self-employed individuals, they may request 2 years of accounts, SA302s, or other relevant financial statements. Additionally, Halifax may ask for bank statements and proof of deposit. The specific requirements will vary depending on your circumstances.
Halifax porting products
The products available to Halifax customers porting their mortgage typically include fixed or tracker mortgages. They usually offer 2, 3, 5, or 10-year fixed rates, as well as 2-year trackers. These options are available for clients borrowing additionally to their current mortgage.
Porting a mortgage can be advantageous under certain circumstances, but it ultimately depends on various factors.
Can I transfer my Halifax mortgage with a broker?
Yes, it’s possible to port your mortgage with a broker. They will usually compare the whole market and the terms offered with Halifax, advising on the best possible solution. They can then help secure and apply for the mortgage, assisting with all the chasing and paperwork.
Is it a good idea to port your mortgage?
Porting your mortgage can be a beneficial option, contingent upon various factors such as the rates offered, suitability of products, and potential exit fees. It’s crucial to carefully weigh these considerations, preferably with the assistance of a mortgage broker. They can provide tailored guidance based on your individual circumstances, ensuring you make an informed decision.
Halifax porting mortgage brokers
At Strive we have a wealth of experience dealing with home owner applications and specifically Halifax porting applications. If you would like to explore your options in more detail we would love to hear from you to offer our expertise.
FAQ’S
Does Halifax charge a fee for transferring a mortgage? They don’t charge a fee specifically for porting, although you may incur valuation fees or arrangement fees on additional borrowing products.
Do I have to buy and sell simultaneously to transfer my mortgage? Yes. Halifax may allow a porting window if you ‘break the chain’ although it’s important to note that if you’ve sold, moved out and your chain collapses you could lose your exit fees and the ability to transfer your mortgage.
Can I port with bad credit? Yes, it’s possible to port with bad credit, some lenders are more lenient than others and it will depend on the level of adverse. It may also help if you are not borrowing additionally or reducing your mortgage balance when moving.
Contact us today, and we’ll work hard on your behalf to find you a competitive mortgage.
For more information on mortgages for contractors, please contact a member of the Strive team, by emailing [email protected] or call us on 01273 002697.
