AFI outlines interest-only porting policy

Santander is allowing its existing mortgage customers who have any part of their existing loan on an interest only basis to port their product(s) to a new property.

This is subject to certain conditions:

* &ltspan class=&quotApple-tab-span&quot style=&quotwhite-space:pre&quot&gt &lt/span&gtthe new mortgage is remaining on an interest only basis
* &ltspan class=&quotApple-tab-span&quot style=&quotwhite-space:pre&quot&gt &lt/span&gtthe new LTV is between 50 – 75%
* &ltspan class=&quotApple-tab-span&quot style=&quotwhite-space:pre&quot&gt &lt/span&gtthe customer wishes to borrow the same amount or less

Miguel Sard, managing director of Abbey for Intermediaries, told brokers that they should ask these customers to contact Santander direct on 0800 011 3506. This is a customer only line and there will be no procuration fees for these cases.

He also said that the lender reserves the right to withdraw this in the future.

However, where a customer wishes to port their existing product(s) and borrow more on their new property and the new LTV will be above 50%, an intermediary can process these applications in the normal way on a capital and interest basis and they will receive a proc fee on the total mortgage loan as usual.