Portability Rules

What happens if you do not want your mortgage anymore – portability rules

Here are our current rules which apply if you want to move your mortgage to a new property. They apply to all mortgages on our current terms. If you have an existing mortgage with us you should check the terms of your offer for the rules for “porting” your mortgage. Please call us on 0800 39 98 200 if you need any help.

(A) The "Special Rate of Interest" means the rate of interest applicable to your mortgage before it switches to the Principality Building Society’s Standard Variable Rate of Interest. The Special Rate of Interest is portable to another property in England or Wales, subject to the following conditions:

(1) You can only port until the date when your Special Rate of Interest ends;

(2) You must submit a new mortgage application which we must approve and you and your new property must meet our lending criteria current at the time of the transfer;

(3) You cannot port if you already own the property to which you wish to transfer the Special Rate of Interest at the time of the transfer;

(4) You can port where the amount you wish to transfer to your new property at the Special Rate of Interest is less than the balance outstanding at the time of transfer provided that you agree to pay a pro rata Early Repayment Charge in respect of the part of the balance not being transferred;

(5) You cannot port where you opt not to transfer your loan on its existing terms; and

(6) Where you are given a free valuation or cash back facility or where you avoid paying our legal fees by using our appointed solicitors, as part of the terms of this mortgage offer, these incentives will not apply to your mortgage account on porting.

(B) In order to transfer your Special Rate of Interest to another property you must redeem your existing mortgage account and open a new mortgage account with us at the same Special Rate of Interest. The Special Rate of Interest (and any Early Repayment Charge associated with it) will only apply to your new mortgage account for the remaining period for which the Special Rate of Interest (and the associated Early Repayment Charge) would have applied to your existing mortgage account, had you not redeemed it.

(C) You must open your new mortgage account with us in accordance with paragraph (B) and achieve legal completion on your new account within 6 months of the date when you redeem your existing account. You must comply with this timescale in order to be able to port your Special Rate of Interest.

(D) If you transfer your Special Rate of Interest you must also pay an Early Repayment Charge on redemption of your existing mortgage account, unless redemption occurs simultaneously with legal completion on your new property. Your solicitor must notify us if redemption and completion are to happen simultaneously. We will not treat redemption and completion as occurring simultaneously if we do not receive such notification and you will be obliged to pay an Early Repayment Charge.

(E) If you comply with paragraphs (B) and (C) we will refund any Early Repayment Charge you have paid in respect of your redeemed mortgage account. Any refunded Early Repayment Charge may be reduced on a pro rata basis to reflect a reduction in the amount borrowed under the new mortgage account.

(F) If you wish to borrow additional money, you may not do so on the terms governing the amount you wish to port. You must select another product from our range current at the time. The terms of the new product will apply to the additional borrowing.