Porting

Porting criteria

General:

• Not all products can be ported. Your client's original offer letter will confirm their mortgage is portable.
• The property your client intends to port to must become their main residence at the point of completion.
• Your client cannot port if they are more than one month in arrears.
• Your client cannot port two separate mortgages onto one property.

Additional borrowing

• If your client wants to borrow more than their existing mortgage balance, they'll need to choose a product from our current Home Mover existing range. This may have a different rate.

Second properties

• If your client already owns the property they intend to port to, this property cannot already be mortgaged to Nationwide.

Interest Only or Part and Part:

•  Your client can keep the interest only amount they owe when their mortgage product is ported, but they must have an acceptable mortgage repayment plan in place.

•  Any additional borrowing must be on a repayment basis, from our current product range. If your client has an Interest Only product and wants to increase their interest only borrowing, speak to your BDM.

Early repayment charges (ERCs) and other fees

ERCs

Your client will not have to pay ERCs when they port the full balance of their existing mortgage to a new property.

If your client wants to borrow less than the outstanding amount on their existing mortgage, the difference must be repaid on completion of the new loan, and ERCs may apply to this amount.

For example, if your client owes £100,000 on the existing property and they want to borrow £80,000 on the new mortgage product for the new property, they'll need to pay ERCs on £20,000.

When we calculate ERCs, we treat partial porting the same way as an overpayment.

For example, if your client is not porting £20,000, but they have an unused overpayment allowance for the year of £10,000, we'll only charge an ERC on the £10,000 difference.

Any overpayment of an ERC or other fees will be refunded. If the borrowers have changed, the refund will be sent to their solicitor. If the borrowers are the same, the refund will be sent to the bank details provided on the account being redeemed.

The redemption statement we send to your client will show ERCs that are part of the mortgage product, even if they are not payable. Your client’s solicitor will need to remove the fees and only send through the redemption amount owed.

How to apply online

Delayed purchases

When porting, we usually expect the sale and purchase transactions to complete on the same day. However, we understand there could be delays in the completion of a purchase, or your client may not have found a new property yet.

The original product term will pause at redemption and restart on completion. This means that the original product end date will extend by the number of days between redemption and completion.

If your client must redeem their existing mortgage prior to completion of their new mortgage because of a delayed purchase, they'll need to pay any ERCs on redemption.

• If we’ve already produced a mortgage offer, we'll continue to process your client’s application. The new property purchase must complete within the offer validity period, with no material changes to the offer.
• If we've not produced a mortgage offer or material changes are required, your client will have up to 180 days from the redemption date to reach completion. However, a paper mortgage application form will be required in these cases.