Are you planning to move to a new home but want to keep your competitive mortgage rate? We know how important it is to hold onto your favourable terms while navigating the excitement and challenges of moving house. The solution? Mortgage Porting
What does porting a mortgage mean?
Mortgage porting means taking your existing mortgage deal with you to your new property. It allows you to keep your current interest rate, term and conditions without paying early repayment charges, something particularly valuable if you're on a great fixed rate in today's market.
Is porting right for you? Porting could be ideal if your current mortgage rate is lower than rates available today, you're within a fixed term and would face significant early repayment charges, you're happy with your current lender's service or your circumstances haven't changed significantly since your original application.
How does porting a mortgage work? When transferring your mortgage to a new property, the process typically involves:
Transfer Application - You'll submit an application to move your existing mortgage to your new home.
Property Assessment - Your lender will evaluate the new property to ensure it meets their security requirements.
Affordability Checks - Even as an existing customer, you'll need to pass affordability checks, similar to a new mortgage application.
Approval & Transfer - If approved, your current mortgage rate and terms will transfer to your new property.
What if I need to borrow more?
If your new home costs more than your current one, you may need additional funds. This is where a further advance comes in:
Your existing mortgage balance remains at your current rate.
The additional borrowing will likely be at your lender’s current rates, which may differ.
Each portion of your loan may have different terms and end dates.
For example, if you have £180,000 remaining at 2.5%, and need £50,000 more, you might maintain the £180,000 at 2.5% while the additional £50,000 could be at 4.5% (or the lender’s current rate).
This lets you secure the extra funds you need while keeping your existing favourable rate on the original balance.
What if I'm moving to a less expensive property?
If your new home costs less, porting a mortgage to a cheaper house can still be done, but you may need to repay part of your loan. In this case:
You'll keep a portion of your existing mortgage
You may incur early repayment charges on the portion you repay
Some lenders offer 'partial porting' options to minimize these charges
Should I port or remortgage? While porting preserves your current rate, remortgaging could be a better option if:
Your existing rate is higher than current market rates
Your fixed term is ending soon
Your lender's porting process is restrictive or complicated
You want to switch to a lender with better terms or service
We can help you compare the actual costs of both options, including any early repayment charges, to determine the most cost-effective solution for your situation.
Important considerations before porting
Before deciding to port your mortgage, keep these key factors in mind:
Mortgage eligibility is checked - Not all mortgages are portable, check your mortgage terms or ask us to confirm.
Lender reassessment is required - Your financial situation and the new property will be reviewed.
Potential fees may be incurred – Some lenders charge administration fees for porting.
Additional borrowing may be required - If you need extra funds, consider whether splitting your mortgage between two rates is the right move.
Let us help you make the right choice Every moving situation is unique, and what works best depends on your specific circumstances, current mortgage terms, and the property you're moving to.
Our mortgage advisers can:
Confirm if your mortgage is portable
Compare the costs of porting versus remortgaging
Help you apply for a further advance if needed
Support you throughout the entire process
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