Porting a mortgage: can I transfer my mortgage when I move?

What is Porting a Mortgage?

Porting a mortgage means you move your current mortgage from one property to another while keeping the same lender, interest rate, and terms. This option is for people who want to move but wish to keep their current mortgage deal instead of breaking it and paying an Early Repayment Charge.

Porting your mortgage is not automatic and needs your lender's approval, especially if you require additional borrowing. First, check with your lender to see if your mortgage can be ported. Even if it can, approval is not guaranteed. The lender will assess your financial situation just like they do for a new mortgage application. They will look at your income, credit score, and other financial details to make sure you still meet their lending criteria.

After you get approval, the lender will evaluate the new property to ensure it meets their requirements. Some properties may not qualify because of their construction type, location, or other reasons. If the property is approved, you will need to apply to transfer your mortgage. This process is similar to applying for a new mortgage, and you must submit all required documents.

If your new property costs more than your current mortgage balance, you will need to borrow additional money. This extra borrowing often comes with a different interest rate which is based on the market rates at the time apply and can impact your overall affordability. Once everything is agreed upon, you will need to get a conveyancer in to take care of the legal side as this it is still classed as a purchase, and as such everything happens as if you were getting a new mortgage.

Pros of Porting a Mortgage

Avoid early repayment charges (ERCs)

Many fixed-rate mortgages impose ERCs for breaking the deal. Porting allows you to sidestep these fees unless your mortgage becomes less than what you currently owe, then partial ERC fees may apply.

Retain a favourable interest rate

If your current mortgage rate is lower than what is available in the market, porting lets you keep that rate.

Potentially less paperwork

Compared to switching lenders, porting may involve less documentation since you're staying with the same provider.

Potentially faster process

Because you’re not seeking a brand-new mortgage from scratch, the approval process may be quicker.

Cons of porting a mortgage

Lender reassessment required

Your lender will re-evaluate your financial situation, meaning if your income or credit score has changed, you might not qualify.

Property criteria may differ

The new home must meet the lender’s requirements, which may be stricter than before.

Potentially higher costs

If you need to borrow more, the extra funds will often be subject to a new interest rate, which might be less favourable.

Not always possible

Not all mortgage products are portable, and even if they are, lenders may still reject your application.

Who should consider porting a mortgage?

Homeowners with a favourable interest rate

If your current mortgage rate is lower than market rates, porting makes financial sense.

Those facing high ERCs

If the penalty for breaking your mortgage is significant, porting can help you avoid unnecessary fees.

People with a stable financial situation

Since lenders reassess your financial standing, porting is ideal for those whose income and creditworthiness remain strong.

Looking for quick approval

If time is a factor, porting may be faster than applying for a new mortgage elsewhere.

How to borrow more on a ported mortgage

If your new home is more expensive than your current mortgage balance, you will need to borrow additional funds. Lenders offer different solutions for this situation. One option is a top-up mortgage, where you take out a separate mortgage for the additional amount at a new rate. It may be cheaper to take a new rate with a different lender on the whole mortgage if the rate your current lender offers isn’t competitive. You would of course need to take into account the ERC. Speak to an L&C adviser if this is something you’re considering.

Alternatives to porting a mortgage

If porting isn’t an option or doesn’t make financial sense, there are alternatives to consider. You could find a different deal with a new lender could provide better terms, even when factoring in early repayment charges. Additionally, if the timing of your home sale and new purchase does not align, a bridging loan can provide short-term financial support until your current home is sold.

Use L&C

Porting a mortgage can be a practical way to save money and maintain favourable loan terms when moving home. However, the process is not always straightforward, and lender approval is not guaranteed. Speak to an L&C mortgage adviser for free, expert advice and see what your mortgage options are.