Porting and Further advances

Porting and Further advances

Further advance

A further advance is a great way for your client to borrow more against their current mortgage. They can also product transfer at the same time and if there are fees associated they will only pay once. We also revalue the property at no extra cost. Additionally, further borrowing may be taken on the same products and rates as the relevant product range available to new customers.

 

Please note: Porting, further advances and Transfer of Equity cases cannot be submitted online

How to apply for a residential further advance?

Step 1 - Check affordability or request information

Our online Affordability Calculator is for new applications and re-mortgages only. For additional borrowing, it should be used for guidance only. Therefore if you want an accurate affordability result please call us to check. When calling, select option 2.

If you require your clients' mortgage account information prior to submitting an additional borrowing application, we can help with this too. But remember - you'll need your clients permission to request this before calling.

Step 2 – Fully complete and return an amendable application form

Fully complete the Residential additional lending amendable application form by saving this to your PC and keying the information in the required fields. Click on the relevant application type below:

Send your signed and completed application form to us via secure mail intermediaries@thecoventry.co.uk and the case will be processed.

When you receive the mortgage acknowledgement email from us the fees will have been collected, the valuation instructed and the case will appear in your online case tracking.

How to apply for a BTL further advance?

Step 1 - Request information
If you require your clients' mortgage account information prior to submitting an additional borrowing application you'll first need their permission to request this. Once you have this call us and we'll be able to help. When calling, select option 2 and follow the instructions.
Step 2 – Fully complete and return an amendable application form

Fully complete the BTL additional lending amendable application form by saving this to your PC and keying the information in the required fields. Click on the relevant application type below:

Send your signed and completed application form to us via secure mail intermediaries@thecoventry.co.uk.

Once we've received this we'll produce an illustration and email this back to you and the case will be processed.

When you receive the mortgage acknowledgement email from us the fees will have been collected, the valuation instructed and the case will appear in your online case tracking.

Product exceptions

Exceptions

If your client is an Interest-only borrower our interactive guide will help you select the right product.

If your client is an existing Offset or Flexx for Term borrower they may be able to borrow more on their existing product, subject to our affordability requirements (for residential borrowing), lending criteria and the product LTV.

Note:

  • Clients with an Offset facility who are looking to borrow more can do so on the same term and product, subject to LTV limits. If they would like an alternative arrangement they will need to complete a Product Transfer.
  • If your client is an existing Godiva Standard Residential customer, and wishes to borrow more, you'll find details of the further advance products available to them in the product pages.

If your client has four or more mortgaged buy-to-let properties and is therefore a portfolio landlord, any further borrowing will need to be on a product from the portfolio landlord product page with the following exceptions:

  • Portfolio landlord clients on an existing Flexx for Term product that was applied for before 16th May 2019 can take further borrowing on their existing product or select a product from the portfolio landlord product pages.
  • Clients on an existing Flexx for Term product that was applied for on or after 16th May 2019 can take further borrowing on their existing product. But if they have since become a portfolio landlord they can only take further borrowing on a product from the portfolio landlord product pages.

For more information, please call us on 0800 121 7788 or refer to our Buy to Let product selection guide.

Who can apply for a further advance?

Eligible clients
Existing clients who meet current lending criteria and have had a mortgage with us for at least six months and have made six consecutive payments within the last six months are eligible to borrow more with a further advance product, subject to the above product exceptions.

Porting

Porting means your client can move house and apply to take their existing mortgage product with them to their new property. So, providing they meet our affordability (for residential properties) and lending criteria (for all properties) based on their current circumstances, they won't need to worry about finding a new mortgage product when they move. Their product will remain the same, including the end date of any initial period (such as a fixed interest rate period). Most of our mortgages are portable but please check below because different schemes have different rules.

 

If your client is an Interest-only borrower our interactive guide will help you select the right product.

 

Porting is subject to an application fee. Please refer to our Godiva Tariff of mortgage charges or our Coventry Tariff of mortgage charges.

How to apply to port a Residential mortgage?

Step 1 - Check affordability or request information

Our online Affordability Calculator is for new applications and re-mortgages only. For additional borrowing, it should be used for guidance only. Therefore if your client's porting application requires any additional borrowing and you want an accurate affordability result please call us to check. When calling, select option 2.

 

If you require your clients' mortgage account information prior to submitting a porting application, we can help you with this too. But remember - you'll need your client's permission to request this before calling.

Step 2 – Fully complete and return an application form

Fully complete the relevant mortgage application form. Send your signed and completed application form to us via secure mail at intermediaries@thecoventry.co.uk.

Once we've received this we'll produce an illustration and email this back to you and the case will be processed.

When you receive the mortgage acknowledgement email from us the fees will have been collected, the valuation instructed and the case will appear in your online case tracking.

How to apply to port a BTL mortgage?

Step 1 - Request information
If you require your clients' mortgage account information prior to submitting a porting application you'll need their permission first to request this. Once you have this, give us a call and we'll be able to help. When calling, select option 2 and follow the instructions.
Step 2 – Fully complete and return an application form

Fully complete the relevant mortgage application form. Send your signed and completed application form to us via secure mail at intermediaries@thecoventry.co.uk.

Once we've received this we'll produce an illustration and email this back to you and the case will be processed.

When you receive the mortgage acknowledgement email from us the fees will have been collected, the valuation instructed and the case will appear in your online case tracking.

Porting policies

CBS and Godiva porting policies
  • Where your client's original mortgage offer permits, and this porting policy applies, your client can apply to take their existing mortgage scheme(s) to a new property.
  • If your client chooses to port their existing mortgage scheme to a new property, an application fee may be charged. The amount depends on the scheme applied for, and is to cover some of the costs associated with the mortgage application on certain types of mortgage schemes. These fees, if applicable, will be detailed in the illustration.
  • The minimum amount that can be ported is £5,000 per sub-account subject to our lending policy and the loan to value limits of their mortgage scheme.
  • The maximum amount that can be ported on the existing scheme(s) is the total balance outstanding at the time the mortgage is redeemed, plus up to £5,000 subject to our lending policy and the loan to value limits of the mortgage scheme. If they require more than £5,000 additional borrowing, all the additional borrowing will need to be on a new scheme.
  • The scheme(s) can only be used to purchase a new property, not to remortgage a property they already own.
  • Completion of new purchase must be on a working day within six months of redeeming their existing mortgage.
  • If your client does not complete on the new purchase when they complete on the redemption of their existing mortgage, they may incur ERCs (depending on the terms of their mortgage product).
  • To receive a full refund of any ERCs, the purchase must be completed within six months from the redemption of their existing mortgage. The purchase must also be funded by:
    • the existing full mortgage balance, or
    • a minimum of £5,000 from each sub-account and no additional borrowing, or
    • the full mortgage balance plus a new mortgage scheme from us* (or increased funds on an existing Offset mortgage scheme).

*Does not apply to Self-certification or Credit Impaired mortgages.

Stroud & Swindon Building Society or ITL Mortgages Limited before 1 October 2011

If the mortgage scheme(s) was/were taken out with Stroud & Swindon Building Society or ITL Mortgages Limited before 1 October 2011, the following policy applies.

  • Where your client's original mortgage offer permits and this porting policy applies, your client can take the existing scheme(s) to a new property or take out a new mortgage scheme.
  • If your client chooses to port their existing mortgage scheme to a new property, an application fee may be charged. The amount depends on the scheme applied for, and is to cover some of the costs associated with the mortgage application on certain types of mortgage schemes. These fees, if applicable, will be detailed in the illustration.
  • The minimum amount that can be ported is £5,000 per sub-account subject to our lending policy and the loan to value limits of their mortgage scheme.
  • The maximum amount that can be ported on the existing scheme(s) is the total balance outstanding at the time the mortgage is redeemed, plus up to a total of £5,000 subject to our lending policy and the loan to value limits of the mortgage scheme. If your client requires more than £5,000 additional borrowing, all the additional borrowing will need to be on a new scheme.
  • Where your client's original mortgage offer permits and this porting policy applies, your client can take the existing scheme(s) to a new property or take out a new mortgage scheme but not to remortgage a property they already own.
  • Completion must be on a working day within 12 months of redeeming their existing mortgage.
  • If your client does not complete on the new purchase when they complete the redemption of their existing mortgage, they may incur ERCs (depending on the terms of their mortgage).
  • To receive a full refund of any ERCs, the purchase must be completed within twelve months from the redemption of their existing mortgage. The purchase must also be funded by:
    • the existing full mortgage balance, or
    • a minimum of £5,000 from each sub-account and no additional borrowing, or
    • the full mortgage balance plus a new mortgage scheme from us.*
    • If the terms allow, where a new mortgage scheme has been chosen instead of porting the existing scheme(s), a minimum balance of £5,000 must be taken on the new mortgage scheme.

*Does not apply to Self-certification or Credit Impaired mortgages.

Porting FAQs

What if both porting policies apply to my client's mortgage?
  • Both policies could apply to your client because each mortgage scheme has its own relevant porting policy. This could arise if their main mortgage was with Stroud & Swindon Building Society and they subsequently took out a further advance with Coventry Building Society.
  • However, to receive a full refund of any ERCs, your client must comply with the general porting policy and the purchase must be completed within six months from the redemption of their existing mortgage.
How much can be transferred to a new property?

Your client can move all or part of their portable mortgage scheme to a new property and may be able to borrow more, subject to our lending policy and the terms and conditions of their existing scheme(s).

If they wish to borrow up to an additional £5,000, they could add this to their mortgage. If they need to borrow more than this, they will need to apply for a new product.

Are there any costs to consider?

If your client has previously borrowed additional funds, their mortgage will be divided into accounts known as sub-accounts. If they port at least £5,000 from each sub-account they may not have to pay any early repayment charge (changing your mortgage), subject to the requirements of our porting policies (fees may apply).

Your client may have to pay a product fee, valuation fee and application fee (if applicable) if they take out a new mortgage scheme, these will be detailed in the illustration for their new property. They must also complete the purchase of the new property within a given timescale – see individual company porting policies above for details.

Coventry Tariff of mortgage charges

Godiva Tariff of mortgage charges

Are there any exceptions?

Your client's mortgage may have a specific porting criteria, in addition to our general porting criteria. These are summarised below, however these schemes may not be available to Godiva or ITL customers.

 

Offset

If your client ports an Offset mortgage to a new property and borrows more, all the additional borrowing must be on their existing Offset mortgage scheme only, whatever the amount. The additional borrowing is subject to the current lending policy and may not exceed the loan to value limit allowed on the Offset scheme.

On the redemption of the current mortgage, the funds in the Offset savings account will be moved to a new easy access savings account. When the Offset mortgage is resumed on the new property, a new Offset savings account will be opened automatically. It's your client's responsibility to transfer any funds they need from their easy access savings account into the new Offset savings account in order to continue to offset the mortgage.

 

Flexx for Term

If your client ports a Flexx for Term mortgage and borrows more, they can either add to the existing mortgage scheme or borrow more on a new mortgage scheme, whatever the amount. This is subject to lending policy and the maximum loan to value allowed on the Flexx for Term scheme.

 

MOREgage

When porting a MOREgage and borrowing more, your client could apply to add up to £5,000 to the MOREgage mortgage scheme. If they wish to add more than £5,000 they can only apply to borrow all the additional funds at our Standard Variable Rate (SVR), subject to our lending policy and the loan to value limits of the mortgage scheme.

The personal loan element of a MOREgage is not secured on the property and the value and term of the personal loan cannot be changed. Your client can keep the personal loan when they move, but if they change the mortgage scheme to something other than another MOREgage scheme, the personal loan rate will increase by 5%. The unsecured personal loan is regulated by the Financial Conduct Authority (FCA) and is provided in accordance with the Consumer Credit Act.

 

Self-certification

If porting a Self-certification mortgage, your client could apply to transfer up to the total outstanding mortgage balance subject to our lending policy and the loan to value limits of the mortgage scheme.

Unfortunately your client's mortgage cannot be ported if they need to borrow more than the total outstanding mortgage balance, and they'll need to apply for a new Residential mortgage for the full amount required. This will include providing proof of current income. In this case, fees relating to your client's new mortgage and any ERCs on their existing mortgage are payable and non-refundable.

 

Credit Impaired

When porting a Credit Impaired mortgage, your client can apply to transfer up to the total outstanding mortgage balance to their new home subject to lending policy and the Loan to Value limits of the mortgage scheme.

Unfortunately your client's mortgage cannot be ported if they need to borrow more than their outstanding balance and they will need to apply for a new Residential mortgage, where available, for the full amount required. This may include providing proof of your client's current income. In this case, fees relating to your client's new mortgage and any ERCs are payable and non-refundable.

 

Flexible mortgages (with a drawdown facility)

If your client ports a Flexible mortgage (with a drawdown facility) they may transfer up to the current outstanding mortgage balance, plus the total available amount on the drawdown facility.

If they need to borrow more, they can apply to add up to £5,000 to the existing mortgage scheme(s). This is subject to our lending policy and the loan to value limits of the mortgage scheme. If they wish to borrow more than £5,000 above the total of the current outstanding mortgage balance and available drawdown facility, then the extra amount must be taken on an appropriate new Residential or Buy to Let Flexible Mortgage scheme (with drawdown facility). Fees relating to the new mortgage scheme will be payable.

 

Stroud & Swindon Buy to Let mortgages

If porting a Buy to Let mortgage originally arranged through Stroud & Swindon Building Society your client may apply to transfer up to the current outstanding mortgage balance to purchase a new Buy to Let property.

If they need to borrow more, they can apply to add up to a total of £5,000 to the existing mortgage scheme(s). If they need to borrow more than £5,000 then the extra amount can be taken on a new Stroud & Swindon Buy to Let mortgage scheme or a new Coventry Building Society Buy to Let mortgage scheme.

 

Portfolio Landlords

If your client has four or more mortgaged buy-to-let properties and is therefore a portfolio landlord, they can still port their existing mortgage, but for any additional borrowing above £5,000 please refer to our Further Advance guide above. For more information, call us on 0800 121 7788 or refer to our Buy to let product selection guide.

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