Fact Check: Are YBS mortgages portable?

Are YBS Mortgages Portable?

Introduction

The claim in question is whether mortgages from the Yorkshire Building Society (YBS) are portable, meaning that borrowers can transfer their existing mortgage deal to a new property when they move. This concept, known as "porting," is often a significant consideration for homeowners looking to relocate without losing favorable mortgage terms.

What We Know

1. Definition of Porting: According to YBS, porting a mortgage allows borrowers to keep their existing mortgage deal or rate when purchasing a new home. This process is contingent on various factors, including the purchase price of the new home and the terms of the current mortgage 12.

2. Portability Process: YBS outlines a specific process for porting mortgages, which includes meeting certain criteria. For instance, if a borrower has a Help to Buy equity loan, they can port their existing mortgage, provided the equity loan is repaid upon selling the current property 57.

3. Potential Fees: There are implications for borrowers considering porting their mortgage. For example, YBS has been noted to impose Early Repayment Charges (ERCs) if borrowers switch to a new product with the same lender and later cancel that to remortgage with another institution 48. This could create a financial disincentive for borrowers to switch lenders after porting.

4. Conditions for Porting: The ability to port a mortgage may depend on the borrower's financial situation and the lender's current lending criteria. YBS states that borrowers must meet these criteria to successfully port their mortgage 7.

Analysis

Source Reliability

• YBS Official Sources: The primary sources of information regarding YBS's mortgage portability come directly from YBS's own website and related documentation 125. These sources are generally reliable as they provide official information directly from the lender. However, they may present a positive bias, emphasizing the benefits of porting without fully addressing potential drawbacks or limitations.

• Third-Party Articles: Articles from financial news outlets, such as Your Money and Mortgage Solutions, provide external perspectives on YBS's mortgage policies, including the implications of Early Repayment Charges 48. These sources can be valuable for understanding the broader context and potential pitfalls associated with porting, but their reliability can vary based on the publication's editorial standards and potential biases.

Conflicts of Interest

While YBS's own materials are authoritative, they may lack objectivity since they aim to promote their mortgage products. Third-party articles may also have their own biases, particularly if they are sponsored or influenced by competing financial institutions.

Methodology and Evidence

The evidence provided by YBS regarding the porting process is straightforward but lacks detailed examples of how different scenarios might play out for borrowers. For instance, the specifics of how the purchase price of a new home affects the porting process are not elaborated upon in the available sources. Additional information on case studies or testimonials from borrowers who have successfully ported their mortgages would enhance understanding.

Conclusion

Verdict: True

The evidence indicates that mortgages from the Yorkshire Building Society (YBS) are indeed portable, allowing borrowers to transfer their existing mortgage deal to a new property under certain conditions. Key evidence supporting this conclusion includes YBS's official statements outlining the porting process and the criteria that borrowers must meet to successfully port their mortgages 125.

However, it is essential to recognize that while the porting process is available, it is subject to specific conditions, such as the borrower's financial situation and the terms of the current mortgage. Additionally, potential fees, such as Early Repayment Charges, may complicate the decision to port a mortgage, which could deter some borrowers from taking advantage of this option 48.

It is important to note that the information provided primarily comes from YBS's official sources, which may present a positive bias. The lack of detailed examples or case studies limits the understanding of how porting works in practice. Therefore, while the claim is verified as true, readers should approach the information with a critical mindset and consider their unique circumstances when evaluating mortgage options.

Readers are encouraged to critically evaluate information themselves and consult multiple sources to gain a comprehensive understanding of mortgage portability and its implications.

Sources

1. Take your mortgage with you when you move | Mortgages | YBS. YBS
2. What is porting a mortgage and how does it work? | YBS. YBS
3. Moving home? Talk to us about your next mortgage | Mortgages | YBS. YBS
4. Big exit penalty warning for Yorkshire BS product transfer mortgage. Your Money
5. Porting | Accord Mortgages - Accord - YBS DXP Prod. YBS
6. Our Blueprint - January 23 - Yorkshire Building Society. YBS
7. Portability criteria - Yorkshire Building Society. YBS
8. Big exit penalty warning for Yorkshire BS product transfer. Mortgage Solutions
9. Porting. Accord Mortgages
10. UNDERSTANDING your 2023 mortgage statement. YBS