Barclays Porting Mortgage: A Comprehensive Guide
Understanding Your Existing Mortgage: What is Mortgage Porting?
Porting your Barclays mortgage is a process that allows you to transfer your current mortgage deal from your existing property onto a new property. This can be particularly advantageous if your interest rate has become more favourable. Most mortgages from Barclays are portable, making the process relatively straightforward for existing customers.
Criteria for Barclays Mortgage Porting
Before porting your mortgage with Barclays, it’s essential to familiarise yourself with their specific criteria. These requirements exist so the process goes as smoothly and in accordance with the lending policies of the bank; understanding these can help determine if porting with them is right for you or not. Let’s take a deeper dive into them together!
Timing of Porting
Porting with Barclays must occur either at the time the customer redeems the mortgage product they wish to port and completes on a new mortgage or within 90 days of redemption of the previous mortgage.
Any additional borrowing required must be taken out on a product that is available at the time of porting.
Early Repayment Charge (ERC) Refunds
Customers moving home who incur an ERC on full redemption will have any ERCs refunded as long as they port their existing product, complete at the same time or within 90 days of redemption and the new mortgage is for at least 75% of their redeemed balance.
Failed Ported Applications
Ported applications that fail to complete within 90 days of redemption will need to be updated to a non-ported case on a new product available at the time, and any ERC arising from the original product will not be refunded.
The Benefits of Barclays Mortgage Porting
Porting your existing Barclays mortgage comes with many advantages that can make the transition more seamless and financially advantageous.
Maintain Your Current Mortgage Deal
Porting allows you to keep your mortgage on your current property, including its interest rate and terms. This may be especially advantageous if your interest rate is favourable or if you’re midway through a fixed-rate deal.
Avoid Early Repayment Charges
By porting your existing mortgage balance with its current deal, early repayment fees – which could run to thousands of pounds – can be avoided, significantly lowering moving costs and making life simpler for everyone involved.
Porting can provide flexibility, as it enables you to move home without having to renegotiate all of the terms of your current mortgage agreement, making the move much less taxing and stress-inducing.
Potential for Additional Borrowing
If you need additional borrowing power for a more expensive property purchase, Barclays offers top-up mortgages as a convenient way to increase borrowing without changing existing arrangements. These sit alongside your current mortgage deal while giving you increased borrowing capability without switching.
Case Study: Barclays Mortgage Porting
How to Port Your Barclays Mortgage
Barclays can make moving home easier when using their mortgage product – you’ll take your existing balance at your current interest rate and no early repayment charge may apply – all dependent on what terms and conditions exist in your existing deal, which can be found within either your offer document or variation agreement document.
Applying for a Top-Up Mortgage
If you need a bigger mortgage as you are moving to a more expensive property, Barclays can assist with applying for a top-up mortgage – this will sit alongside your existing mortgage but must meet their lending criteria again as your income, outgoings and credit rating may have altered since taking out your initial mortgage.
How a Mortgage Broker Can Help You Port Your Mortgage
Navigating the process of porting your mortgage can be complex, and this is where a mortgage broker can provide invaluable assistance.
Working with an experienced mortgage broker will ease the porting process for you. They can explain the terms and conditions of your current mortgage deal, along with any associated costs or benefits, before offering expert guidance as to whether porting is suitable in your particular circumstances.
Assistance with Applications
Applying for a mortgage or top-up can be a complex and time-consuming process. A mortgage broker can help make this task simpler by completing your mortgage application as well as helping fill out all necessary forms and paperwork accurately, increasing your chance of approval and decreasing stress levels during this process.
Negotiating with the Lender
Mortgage brokers have established relationships with each mortgage lender, including Barclays. They can negotiate on your behalf, potentially securing better terms or speeding up the approval process.
Time and Effort Saved
Utilising a broker allows you to save both time and effort during the porting process. They’ll handle most of the work for you so you can focus on other aspects of your move instead.
Access to Mortgage Affordability Calculators
Mortgage brokers have access to tools like a mortgage affordability calculator that can give a rough estimate of how much of a mortgage would be possible based on your income and outgoings – helping you plan for financial success more easily as well as keeping your mortgage repayments affordable.
Understanding Early Repayment Charges
Working with a broker will enable you to understand the implications of an early repayment charge, and how porting your existing mortgage can help avoid them.
Barclays Mortgage Porting: Important Considerations
While porting your current mortgage with Barclays can have financial benefits, it’s important to consider all aspects of the process.
By purchasing an affordable property, your loan-to-value ratio could increase, which may have an impact on your mortgage terms and requirements.
Change in Financial Circumstances
If your income or outgoings have changed significantly since taking out your existing mortgage, and therefore no longer meet its lending criteria for top-up financing, obtaining another may no longer be a viable option.
Early Repayment Charges
While porting can help avoid an early repayment charge it is still essential that you understand the details of your current mortgage deal and any potential costs associated with early repayment.
The new property will need to be valued as part of the porting process. This could potentially affect the amount you can borrow. A valuation fee could be payable although some mortgage lenders do not charge a fee.
If you need to borrow more for a more expensive property, the additional amount will be subject to the lender’s current rates and underwriting criteria.
Legal and Valuation Fees
There may be fees associated with the legal work and property valuation involved in porting a mortgage.
Frequently Asked Questions
Can Barclays mortgage be ported?
Yes, most mortgages from Barclays can be ported. This means you can transfer your existing mortgage deal, including the interest rate and any Early Repayment Charge (ERC) conditions, to a new mortgage when moving home.
How long does porting a mortgage take?
The timeframe for porting a mortgage varies based on personal circumstances and your lender's processes, but typically takes anywhere from several weeks to several months. For the most accurate timeline, speak directly with your broker or mortgage provider.
What are the disadvantages of porting a mortgage?
While porting a mortgage can have benefits, there can be disadvantages. These may include potential fees, the need to re-qualify for the mortgage, and limitations on the amount you can borrow. It's important to discuss these potential disadvantages with a mortgage advisor.
Is it a good idea to port a mortgage?
Porting a mortgage may be beneficial if your existing one offers a preferable interest rate or terms, or you wish to avoid early repayment charges. Before considering this step further it's essential that you assess your individual circumstances carefully and seek professional advice.
How common is mortgage porting?
Mortgage porting is quite common, especially among homeowners who have a favourable mortgage deal with affordable monthly payments that they would like to keep when moving to a new property. However, the exact prevalence can vary depending on market conditions and individual lender policies.
Is it difficult to port a mortgage?
Porting a mortgage can be challenging depending on a number of factors, including your financial status, lender criteria and terms of existing loans. Although this process can be time-consuming and complex, working with an experienced mortgage broker or advisor may prove invaluable in streamlining this process.
A Conclusion on Porting a Mortgage Barclays
Porting your mortgage with Barclays can be a beneficial move when moving home, enabling you to keep your current deal and existing interest rate and possibly avoid an early repayment fees. But in order to make an informed decision that suits your circumstances, it’s essential that you first gain an understanding of the process and its financial ramifications.
Remember, your home may be repossessed if you do not keep up mortgage payments. Always seek professional advice before making significant financial decisions.