Porting Your Mortgage: What It Means and How It Works

If you're thinking about moving house but want to keep your current mortgage deal, porting could be an option worth exploring. Many homeowners are now considering porting as a way to hold onto a competitive rate while avoiding early repayment charges. But how does it actually work, and is it the right choice for you?

What is porting a mortgage?

Porting simply means transferring your existing mortgage deal to a new property. It allows you to keep the same interest rate and terms, even though you're moving to a different home. This can be particularly helpful if you’re tied into a fixed-rate deal and would otherwise face penalties for leaving early.

It is worth noting that although the mortgage itself is portable, you will still need to go through a full application with your lender to have it approved for the new property.

Who can port a mortgage?

Not all mortgages are portable, so the first step is to check your current deal. If you’re unsure, Barry at The Mortgage Network can help review your paperwork and speak to your lender on your behalf.

Even if your mortgage is portable, your lender will want to reassess your finances before agreeing to port it. They will look at your income, credit history, and outgoings, just as they did when you first applied. They will also carry out a valuation on the new property to ensure it fits within their lending criteria.

What happens if you're buying a more expensive home?

If the new property costs more than your current one, you may need to borrow extra. Your existing mortgage deal can usually be ported for the amount you already owe, but anything above that is treated as a separate application. The additional borrowing may be offered on different terms and could be subject to higher interest rates.

In this situation, you would effectively have two parts to your mortgage: your original deal and a top-up with its own rate and conditions.

What are the advantages of porting?

• You could avoid early repayment charges, which can be substantial depending on your deal and how much time is left on your fixed term.

• You get to keep your current interest rate, which is a real benefit if rates have risen since you took out the mortgage.

• You may find it quicker and easier to stay with the same lender, especially if you already have a good relationship and they’re familiar with your financial history.

What are the potential drawbacks?

While porting has clear benefits, there are a few things to watch out for. If you’re increasing your loan, the extra borrowing might come with different conditions. You may also need to pay valuation and legal fees during the process, and in some cases, the lender may not approve the porting if your circumstances have changed significantly.

Is porting right for you?

Every mortgage situation is different. Porting can be a smart move, but it depends on your future plans, your current deal, and your lender's flexibility.

I can help you explore whether porting is the right option, or if remortgaging would work better for your goals. If you’re planning a move and want clear, honest advice, please get in touch to talk through your options.