If you’re moving home in London and already have a current mortgage deal you’re happy with, you might be wondering if you can take it with you. This process, known as mortgage porting, allows you to transfer your existing mortgage, and its same interest rate, to a new property.
For many homeowners, porting a mortgage can be a smart way to keep a low interest rate and avoid paying costly early repayment charges.
But the process isn’t always straightforward, and whether it works for you will depend on your personal circumstances, your current lender’s rules, and the details of your mortgage terms.
What Does Mortgage Porting Mean?
A portable mortgage is one that allows you to transfer your existing deal to another property. Instead of paying off your current mortgage in full and starting a brand-new product, you effectively keep your current deal and apply it to your new home.
Most mortgages are technically portable, but you still need to submit a new mortgage application and meet your lender’s current lending criteria.
Why Port Your Mortgage?
The main benefits of mortgage porting include:
- Keeping your low interest rate – If your current deal is better than what’s available on the market, this can save you money.
- Avoiding early repayment charges – Many existing fixed and tracker products carry penalties if you pay them off before the end of the term.
- Reducing fees – You may avoid certain exit fees or arrangement costs by sticking with your existing lender.
How the Process Works
When you port your mortgage, you’ll:
- Apply to your current mortgage lender for approval to move your deal to your new property.
- Have the new property valued, expect to pay a valuation fee.
- Pass a fresh credit check and affordability assessment, even if you’ve never missed a payment.
- Cover any arrangement fee if additional borrowing is needed.
Porting When You’re Borrowing the Same Amount
If your new loan is the same as your current mortgage balance and your income hasn’t changed, the process is often simpler.
You’ll usually keep the same interest rate and monthly payments, subject to the new property meeting the lender’s requirements.
Porting to a More Expensive Property
If you’re moving to a more expensive property and need to borrow more money, your lender may offer a new mortgage deal for the extra amount.
This could be at a different rate to your original loan, meaning you’ll effectively have two mortgage products running side by side.
Porting to a Cheaper Property
If you’re buying a cheaper property, you may not need the full amount of your old mortgage.
In this case, you could face early repayment charges on the portion you repay, so it’s worth checking with your lender to avoid paying unnecessary fees.
When Porting Might Not Work
Mortgage porting isn’t guaranteed. Your application can be declined if:
- Your financial situation has changed (e.g. more other debts or lower income).
- The new property doesn’t meet lending criteria.
- You no longer fit the current lender’s mortgage terms.
If this happens, you may need to look at new mortgage options from other lenders to find the best deal.
Costs to Watch Out For
Even if you successfully port, you may still need to pay:
- Valuation fee for the new property.
- Arrangement fee for any extra borrowing.
- Legal fees for the property transfer.
Tips for a Smooth Porting Process
- Speak to your mortgage broker before you commit to a new home, they can help you decide if porting is the most cost-effective route.
- Compare your current deal with what’s available in the market to ensure you’re not missing out on better rates.
- Factor in any exit fees or early repayment charges before making a decision.
- Be aware of timing, most lenders will require the purchase and sale to complete on the same day for the port to apply.
Final Thoughts
Mortgage porting can be an excellent way to keep favourable terms and save on costs when moving home. But it’s not the right choice for everyone, and the process can be more complex than it first appears.
Understanding your current mortgage balance, lender requirements, and the impact on your monthly payments is key to making the right call.
Thinking About Porting Your Mortgage?
At The Mortgage and Protection Hub, we help London homeowners decide whether porting your mortgage is the best move, or if a new deal might save you more.
We’ll guide you through the process, compare rates, and ensure you keep the most favourable terms possible.
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