Many people who are moving home assume that they need to look for a new mortgage deal. When the sale and purchase are complete, the lender financing their new home pays off the old mortgage and there’s simply a new loan for the new home. This is ‘remortgaging’.

But there’s another option that’s less widely understood: ‘porting’, where you essentially transfer your existing mortgage to your new home. The benefit of this is that you can usually retain the same terms, so if you’re on a preferential interest rate, you can hold on to it. 

There are no early redemption fees to pay, however, you will have to re-apply for the mortgage and most lenders will only port the current outstanding balance at the same terms.

How porting your mortgage could benefit you in the current market


What if I need to borrow more?

If you’re moving to a more expensive property and need a bigger mortgage, it’s likely that your lender will require you to take out that additional loan amount on a separate mortgage. The terms and interest rate for that will be different and there’s likely to be an arrangement fee.

3 key things to know if you’re considering porting

  1. There’s no guarantee you’ll qualify for the mortgage again if either your own circumstances or the lender’s criteria have changed. For example, if you’ve taken on other debt, your income has fallen or you’ve become self-employed since you originally took out the mortgage, you may not be approved this time.
  2. If you’re able to port and need to borrow more, you may not get the best interest rate for that additional borrowing, as you’re limited to the products offered by your existing lender.
  3. If you do take out additional borrowing, you’re likely to end up with two different mortgage products with initial preferential rates that come to an end on different dates. You need to be aware that your entire loan amount may revert to a higher rate as soon as either one of the products reaches the end of its initial period.

How porting your mortgage could benefit you in the current market 2


How do I work out if it’s worth porting my mortgage?

This is a conversation that you should have with a mortgage broker, who can give professional advice that’s tailored to your circumstance. Meanwhile, here are some further points to know and consider:

  • If you don’t need to borrow any more, then porting may be the best and simplest option. Although you will have to reapply for the mortgage and there will be some fees, such as for the valuation survey, it could be cheaper than remortgaging.
  • If you’re increasing your borrowing significantly, you will be tied to whatever interest rate your lender is prepared to offer for the additional loan. So it’s important to check that the money you’re saving by porting is greater than the amount you could save if you were able to access another lender’s preferential rate for the whole mortgage amount.
  • If your home has increased well in value since you originally took out the mortgage and you’re not planning on buying a much more expensive home, you should be able to remortgage at a lower loan to value. That will give you access to lower interest rates so, even in the current market, you might be able to get a new mortgage with a different lender for not much difference in monthly payments.

Of course, you’ll be dealing with your current lender if you do decide to port, but before you make any decisions – no matter how good you think your current deal is – it’s always sensible to look at what else is available in the market. It’s also well worth speaking to a broker to make sure you understand all the pros, cons and conditions of porting to ensure you’re making a fully informed decision.

Here at Mortgage Scout we’re always here to help. So, to talk through your current mortgage deal and find out whether porting might be right for you, just make an appointment via our website and one of our advisers will be in touch.

You may have to pay an early repayment charge to your existing lender if you remortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1%, but a typical fee is 0.3% of the amount borrowed.
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