We always need to make changes with time for ourselves and our family as a priority. So we chose to mortgage a property. However, in case our family grows and we need more space, or a retired person requires a different location to live, or sometimes people don’t need more space, so they want a smaller property. While doing a home mover mortgage, we should choose the option for Porting Mortgage rather than changing lenders. At that, we should choose the option for Porting Mortgage. We will discuss today about Barclays Porting Mortgage.
Porting a mortgage is nothing but changing your property with the same lender and the same benefits. Sometimes it happens that we are happy with the lender and we don’t want to lose the current mortgage benefits. In this situation, porting a mortgage is a good and comfortable option for us. This facility is available in Barclays Porting Mortgage. Barclays is a big and reputable lender in the UK. Barclays provides new options for mortgaging and remortgaging a property as per the borrower’s requirements. In case of porting the mortgage, Barclays gives good options and details.
Can I port my Barclays mortgage?
Surely. Barclays Porting Mortgage is possible. 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.
Mortgage Option:
First, we will understand the lender’s criteria and the option of mortgaging. Mortgages have two types:
Fixed-rate mortgage: Provides a constant interest rate for a certain period of time.
Variable Mortgage: It provides a lower interest rate compared to a fixed-rate mortgage, but over time, it can increase.
Lending Criteria:
Now we will see the lending criteria for Barclays mortgage porting:
Exact timing to port:
It’s possible we can sell our old house to buy a new one using the same mortgage in 90 days.
Additional Borrowing:
At the same time, if any additional borrowing is needed, it can be done on a different product.
Early Repayment Charge (ERC) Refund:
If there is any penalty on our current mortgage to pay off early, this penalty will be refunded when you port the mortgage to a new one. Usually, the new mortgage should be complete in 90 days from the time the old mortgage is paid off.
Process of Porting Your Barclays Mortgage
- Porting a mortgage from an old to a new property is easy when both properties have the same mortgage amount.
- If we are interested in buying a new property that is bigger than the old one, then we need to take a top-up loan. At that time, the bank checks our details for bank security to determine whether we can pay a top-up loan or not.
- Barclays will review your finances. It checks our credits and if there are any changes in our financial background since the time we first bought a mortgage.
- The checking details of our new property, for which we want a mortgage. Means it is suitable for a loan or not.
- When our Financial background and new property valuation are satisfactory, then Barclays gives a mortgage offer.
- If our credit score decreases from the first mortgage application, then our request may be refused.
The Benefits of Barclays Porting Mortgage:
1. Maintain current Mortgage Rate:
It maintains current mortgage rates. Means it continues the benefits of our old mortgage deal to the new one. So the process becomes smooth for buying a new mortgage property.
2. Avoid ERC:
If we break the terms of our Barclays mortgage, then we have to pay Early Repayment Charges, but if we do not, then Barclays doesn’t charge ERC.
3. Flexibility:
It avoids negotiation for the new property mortgage rate. Because it works with existing.
Less taxing and stress.
Low moving Cost and time.
4. Additional Borrow:
We can borrow additionally for a new property if it’s bigger than the old one, without affecting the current mortgage agreement.
Factors to Consider for Barclays Porting Mortgage:
Barclays Porting Mortgage gives us good benefits, but there are some factors that we should consider to avoid decline.
1. Financial Circumstances:
If there are any changes in our financial background before porting from a current mortgage to a new one, the lender can decline your request. To avoid this problem, we have to always talk to our Mortgage broker before starting the process.
2. Loan-To-Value:
LTV means nothing but the loan of your new mortgage against the property value. If the LTV increases, it will impact your current mortgage rates, and it will affect our affordability.
3. House Value:
Your whole process of Barclays porting the Mortgage depends on your new property value. Sometimes you will need to pay a fee for a property survey. If the new property is higher than the old one, then you will need to pay a higher deposit or borrow additional loans from the bank.
4. Additional Cost:
In this whole process from start to end, there are various types of fees the buyer will need to pay, like legal costs, valuation fees, your mortgage broker charges, stamp duty and moving costs. So we should consider that before applying to avoid further fee-related barriers.
5. Documents:
You should be clear about all documents that are necessary for Barclays Mortgage Porting. For more details, refer to what documents do i need to remortgage.
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How a Mortgage Broker Can Help You Port Your Mortgage
The Process of porting a Mortgage will be more complex, but if we take help from a Mortgage Broker, then it will definitely be easier, and the process will become smooth and hassle-free.
1. Expert Advice:
If we work with an experienced mortgage broker, they will explain to us the whole process of porting, additional costs, benefits, terms and conditions, which overcome barriers from start to end. The process of Barclays Porting Mortgage will be easier and smoother. Apart from that, the Broker will Compare Remortgage Rates.
2. Application:
We know that if your new property is more expensive than an old one, then we have to go for a loan, or we can say a top-up. At that time, the broker will help to fill out all our necessary forms, applications, etc. It makes the process stress-free and doesn’t require much more time. So, the big question of how long does a mortgage application takes through a broker will be easily solved here.
3. Mortgage Affordability Calculators:
An Expert Broker have all the access to the necessary tools and calculators like Mortgage affordability calculators. So Broker can give us a full estimate of our costing from start to end. It is good to plan for a successful mortgage process.
4. Mortgage Broker for Specific Areas:
As we discussed before, sometimes we need to change our living locations for many reasons. So, on the new place details, mortgage affordability, values and the consuming process of porting mortgage will be much easier with Expert Mortgage Broker. If we need to switch the location to Hounslow, then Mortgage Broker Hounslow will help us with mortgage porting.