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At a glance

If youre moving to a new property but are still in a fixed mortgage term, you may be able to move your existing deal to your new home. This is known as porting.
Porting a mortgage allows you to keep the same mortgage rate and can help you avoid early repayment charges.
However, porting isnt always possible, and can depend a lot on your circumstances and the lenders criteria.

Porting a mortgage means transferring your existing mortgage to another property. This allows you to move home while essentially keeping the same mortgage deal, which could save a lot in fees and legal costs.

However, though a lot of mortgage deals are portable, not all will be and even if yours is, theres no guarantee that youll actually be able to port it, as it all depends on your circumstances and the terms of your particular deal. Here we take a closer look at porting a mortgage to see how it could work for you.

How does porting a mortgage work?

Porting a mortgage works by transferring your mortgage deal to a new property, including the current interest rate and all relevant features. However, its important to note that its the deal thats portable, not the loan itself, so youll still have to re-apply for the mortgage.

If approved, youll keep the same mortgage rate and everything will stay the same as it was before, but because youre technically applying for a new mortgage, theres no guarantee, particularly if your circumstances have changed or the new property is vastly different to your current one.

Porting a mortgage to a cheaper property

If youre asking to borrow less money it may seem like porting would be a simple process, but while its certainly possible, youll still need to complete an affordability assessment.

Early repayment charges could also be an issue if youre not porting the full amount, and note too that porting means youll keep your current interest rate, so even if youre technically able to move down a loan-to-value (LTV) bracket, it likely wouldnt result in a cheaper deal.

This means it could be worth seeing if remortgaging to a completely new product or even new lender could be more suitable, particularly if there are early repayment charges to pay.

If youre unsure of the right course of action, its worth speaking to a broker wholl be able to help.

Porting a mortgage to a more expensive property

This will involve borrowing more money, but you wont be able to add that amount to your existing mortgage. Instead, youll have to apply for a new, separate mortgage to cover the difference, which will usually be at a different rate. This could mean you then have two mortgages the mortgage you port, plus another mortgage to cover the extra amount.

For example, lets say you have a current mortgage balance of 150,000 on a 250,000 property, giving you equity of 100,000. Youre moving to a new property worth 300,000, which means youll need an additional mortgage of 50,000 to cover the cost (current mortgage of 150,000 + new mortgage of 50,000 = 200,000 total mortgage, with the equity of 100,000 completing the purchase).

However, as with all mortgage applications this will be subject to stringent checks to ensure you can afford the higher mortgage costs. Make sure to seek advice ahead of time to help you crunch the numbers.

Speak to a mortgage broker

A mortgage broker can help you decide if porting would be the right option for you, taking some of the guesswork out of the equation. Find out more about the benefits of using a broker in our guide, and get in touch with MAB, our preferred broker, who will be able to help.

Speak to a broker

Can I port my mortgage?

This will depend on the terms of your mortgage, as while a lot of mortgages are portable, not all of them are. If youre unsure, you can ask your lender for clarification.

However, you should bear in mind that even if your mortgage is portable, youre not guaranteed to be able to port it. Approval will depend on a whole range of factors such as the LTV youre moving to, whether your circumstances or financial situation have changed, affordability checks and the providers general lending criteria.

A few reasons that could mean youre not able to port your mortgage include:

If your household income has changed, such as if youve recently been made redundant or have gone self-employed.
The provider wont lend on the house youre moving to, such as if its a property of unusual construction.
If youve taken on more debt since your initial mortgage application.
Your credit score has worsened due to missed payments (make sure to check your score before applying).
If you need to borrow more money but dont pass affordability checks.

What if my mortgage isnt portable?

Your first step is to speak to the lender to find out why. If you dont agree with the decision you could ask them to review it, or if you think youve been treated unfairly you can contact the Financial Ombudsman Service.

Alternatively, if its a case of your circumstances have changed and/or you dont meet affordability criteria, could you do anything to improve your situation, such as paying down debt, improving your credit score or increasing your income?

If not, your other option could be remortgaging to a brand new deal with a different lender, though bear in mind that this will likely result in exit fees and an early repayment charge (ERC) to pay off your current mortgage early, as well as the additional costs of taking out a new mortgage.

However, bear in mind that youll still need to meet the criteria of the new lender, so switching may not even be possible. In that case your other option is to simply stay in your current home, and wait until your circumstances mean youll be eligible for porting or switching mortgage lender.

If your best option is remortgaging to a new deal, youll want to make sure youve got the best rate possible. Check out our remortgage charts to see what deals are available.

Find the latest remortgage rates

Is it a good idea to port your mortgage?

If mortgage rates have increased since you took out your initial deal and it would be more expensive to remortgage to a new one, then porting could be a great option. It could also be beneficial if youre still in a fixed term and would have to pay a hefty early repayment charge to switch.

However, in some cases moving to a completely new mortgage deal would be preferable, such as if you could get a much cheaper rate elsewhere, even after all additional costs have been taken into account.

Ultimately the best way to work out if its a good idea to port your mortgage is to weigh up the costs involved in each option. You could do this yourself, but it can be useful to speak to a broker who can help.

How to port your mortgage

If youve decided that porting your mortgage is the best option, here are the steps to take:

Get prepared. Youll need to properly prepare to port your mortgage, in the same way youd need to if you were applying for a brand new deal. This means you should check your credit score to ensure there wont be any nasty surprises, and start collating the paperwork youll need for your application (such as bank statements, payslips, etc). Its also worth familiarising yourself with the income that can be used for a mortgage to be confident youll pass the affordability checks.
If youre asking to borrow more money, make sure you can afford it and that youre likely to be accepted. Use our mortgage repayment and borrowing calculators to help work things out.
Contact your lender. Youll need to apply for a Decision in Principle as you would for any other mortgage. The lender will run through the usual affordability and credit checks and will conduct a property valuation.
Wait for the application to be approved.
Complete the house purchase and pay off your old mortgage. Normally this would be on the same day, but most lenders will allow a grace period after redeeming the old mortgage for you to complete on the new one.

How long does porting a mortgage take?

This can vary depending on the lender and your circumstances, but it will typically take between one and three months to complete a mortgage port. If its a simple case it should be fairly quick, but if youre asking to borrow more money (and will therefore need a second mortgage) or if there are issues with the property it can take longer.

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Porting a mortgage explained

Leanne Macardle

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