Porting changes for Mortgage


Although increasing numbers of homeowners are requiring flexibility in porting a mortgage, as a sluggish housing market means sellers waiting to complete are sometimes having to move into a short-term rental property rather than risk losing their buyers, lenders are moving in the opposite direction.

Nationwide building society has made it harder for people moving house to port a mortgage from one property to another one. Borrowers who could previously redeem their old mortgage and take the same deal out with the building society on a new property six months later now have just a three-month window. They can also only take up that same deal again if they have told Nationwide of their intentions before redeeming the old loan – something that wasn't required previously.

Woolwich has also tightened its porting criteria. David Hollingworth of brokers London & Country said: "Now you have a 30-day window to redeem your mortgage on your old property and start it up again on your new one. Otherwise, Woolwich will only reimburse you any early redemption charges if you take out a different loan with it within six months."

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