What Is Porting A Mortgage?
If you’re planning to move house but want to hold onto your current mortgage deal, you might be wondering: what is porting a mortgage? This blog explains everything you need to know about how to port a mortgage, including what it involves, when it works best, potential drawbacks, and how it compares to other selling strategies like selling your house for cash.
What is porting a mortgage?
Porting a mortgage means transferring your current mortgage deal from one property to another when you move home. Rather than applying for a new mortgage, you port your mortgage, keeping the same lender, product, and interest rate. This can be a huge financial advantage if your original deal was favourable.
What does porting a mortgage mean?
In essence, what does porting a mortgage mean? This means that your mortgage will follow you to your new property. It allows homeowners to keep existing terms, such as interest rates and repayment duration, which is especially useful when market conditions are less favourable than when your mortgage was first secured.
How does porting a mortgage work in the UK?
So, how does porting a mortgage work? The process is similar to reapplying for a new mortgage, but with the added benefit of retaining your current terms.
1. Check porting eligibility
The first step in how to port a mortgage is determining whether your mortgage product is portable. Some mortgage agreements include portability by default, while others don’t. Always check your paperwork or speak to your lender or mortgage broker.
2. Reapply and undergo credit checks
Even when you port a mortgage, lenders will reassess your finances. This includes credit checks, income verification, and affordability calculations to ensure you can still meet the monthly repayments based on the new property’s value.
3. Property valuation and lender approval
The lender will conduct a valuation of the new property to confirm that it meets their lending criteria. If the new property is approved, your mortgage will be successfully ported.
Benefits of porting a mortgage when you move home
There are several reasons why homeowners choose to port a mortgage rather than apply for a new deal. Below are the top benefits:
1. Lock in your existing interest rate
By porting a mortgage, you can retain your current interest rate, this is especially valuable in times of rising rates.
2. Avoid early repayment charges
Porting means you’re not technically repaying the mortgage, so you usually avoid early repayment charges (ERCs).
3. Maintain mortgage continuity
If you’re happy with your lender or your mortgage product, porting your mortgage lets you maintain consistency and avoid the stress of switching lenders.
4. Financial flexibility during life changes
Relocating for work, upsizing for a growing family, or downsizing in retirement? Porting a mortgage helps smooth out the financial side of the transition.
5. Lower fees and admin costs
Compared to starting a new application, porting a mortgage can involve lower setup fees, fewer legal costs, and simpler paperwork.
When can’t you port a mortgage?
Despite the benefits, porting a mortgage isn’t guaranteed. Here are a few scenarios where it may not be possible:
1. Change in your financial situation
A drop in income or a decline in credit score could disqualify you during the reapplication process, even if you’re sticking with your current lender.
2. New property doesn’t meet criteria
If your new home is of non-standard construction or valued significantly less than anticipated, your lender may not approve the port.
3. You need to borrow bore
Porting a mortgage and borrowing more can be a challenge. If your new home is more expensive, lenders may allow the port but require a second loan for the extra amount. This top-up could come with a different rate, creating two separate loan agreements.
Is porting a mortgage always the best option?
Not always. In some situations, starting afresh with a new mortgage product may be more cost-effective. Consider the following:
1. More competitive rates may exist
If interest rates have dropped since you took out your current mortgage, switching might save more than sticking with your old deal.
2. Borrowing complications
As mentioned, porting a mortgage and borrowing more could mean juggling multiple loans with different terms and rates.
3. Time and admin hurdles
Porting a mortgage can still involve valuations, affordability assessments, and paperwork — it’s not always a simple process.
When selling for cash might be better than porting
If your goal is to move quickly, avoid admin hassle, or sell under unique circumstances (e.g., probate), you may prefer to sell your home for cash.
Advantages of selling to a cash house buyer like Sell House Fast:
- Sell in days, not months
- No estate agents or hidden fees
- Sell properties with tenants or during probate
- No risk of buyer chain collapse
- Guaranteed offer with no obligation
Explore your options with Sell House Fast
If you’re deciding between porting a mortgage and selling your property, Sell House Fast can help you make the right move. Whether you’re transferring your mortgage or seeking a quick and guaranteed cash sale, we offer trusted advice and practical solutions. Reach out today for a free, no-obligation valuation and explore how we can simplify your next move.
