What is porting a mortgage?
‘Porting’ is sometimes loosely described as moving your mortgage from your current home to your new one. However, it technically involves redeeming the existing mortgage in favour of a new one. The latter is the same mortgage deal but on a different property. You may have to pay fees to ‘move’ from your current mortgage to a new one.
If you’re porting your mortgage, the lender will typically run an affordability check to ensure that you meet their current criteria.
What if you need to borrow more?
If you need to borrow more to purchase your new house, it’s possible that you may be allowed to port your mortgage. However, you may be charged a fee to increase your loan. The lender may also charge you a valuation fee for assessing the value of the new property.
What if you don’t port your mortgage?
You may not want to port your mortgage, or be able to – your lender may not allow this or you may not meet their current terms of affordability. Perhaps the newer deal will mean that you’ll get poorer interest rates. You may still have other options to consider, though. These include the following:
- Switching lenders
You may want to give up your current mortgage (this may incur penalty fees) and shop around for a lender who will give you a deal for your new property.
- Staying put
You may prefer to keep your existing mortgage on your current property.
If you do want to port your mortgage, you can check your Equifax Credit Report & Score in advance. Free for the first 30 days then £7.95 monthly, it gives you a view of your credit history, as well as how creditworthy a lender may find you. This gives you time to make any improvements before applying to port your mortgage.
- Getting a second mortgage and buying a second home
- What does freehold mean?
- What credit score is needed for a mortgage?
- What is a 95% mortgage?
- Stamp duty on new builds
- Stamp duty on second homes and buy-to-let properties
- Stamp duty for first-time buyers
- Stamp Duty Land Tax (SDLT) explained
- What to do if you’ve been rejected for a mortgage
- What is a mortgage?
- Can you apply for a mortgage with credit card debt?
- What to ask estate agents when purchasing a property
- Can I apply for a mortgage in retirement?
- What is a joint mortgage?
- Offset mortgages explained
- What is a mortgage in principle?
- What’s a mortgage deposit?
- Purchasing property with friends
- Costs and fees to consider when you’re buying a home
- Getting a no deposit mortgage with bad credit
- Do you have Right to Buy on your council home?
- Saving for a mortgage deposit
- What is a mortgage interview?
- How do credit scores affect mortgages?
- What to consider when applying for a mortgage if you’re self-employed
- Buying property – what is conveyancing?
- Buying a property – what is gazumping?
- Types of home improvement loans
- What happens to a mortgage after death?
- Getting credit-ready before applying for a mortgage
- How do mortgage applications work?
- Selling property – what to ask estate agents
- Selling property – estate agents vs doing it yourself
- Buying a leasehold property
- Help to Buy: equity loan
- London Help to Buy
- Mortgages for self build and custom build homes
- Help to Buy: Shared Ownership
- What is a Help to Buy: ISA?
- Resources for first-time buyers
- Buy-to-let mortgages explained
- What is remortgaging?
- How mortgage repayments work
- Understanding Mortgages
- Types of Mortgages
- Mortgage rates & decision
- Homebuyer's guide