If you’re planning on moving home and have a mortgage on your existing property, you might wonder whether you can take your current mortgage with you. Often, the answer is yes, and the process is called ‘porting’. Porting a mortgage means taking your current mortgage rate with you to a new property. Lots of mortgages are portable, which means you can move them across to a different property, but it’s important to weigh up the pros and cons first.
Usual circumstances for porting your mortgage would be moving to a new home and borrowing more before the term of your current deal has finished. If you’re on a really competitive mortgage rate, or you’ll be hit with steep early repayment charges for leaving your current mortgage, it can make good financial sense to stick with the same deal. Some lenders charge thousands of pounds in penalties if you redeem a mortgage early, so check how much you might have to pay if you were to switch to a different mortgage deal rather than transfer.
However, transferring your mortgage across to another property isn’t as simple as just changing the address on your mortgage forms. You effectively have to reapply for your mortgage, even if you’re not changing the term or the amount you’re borrowing. That means you’ll need to supply proof of identity as well as evidence of your income and outgoings – in fact all the information you had to provide when you first applied for your mortgage.
The lender will need to carry out a mortgage valuation of the property you’re purchasing too, to confirm that it provides adequate security for them to lend against. Once they’ve assessed your application, they’ll tell you if you’re able to move your mortgage or not.