Porting your mortgage when you move home: what you need to know

If you are moving home and you are part-way through a mortgage deal, you may be able to take that mortgage with you. This is called porting. It can save you an early repayment charge, but it is not always the best choice. Here is how to think it through.

What porting means

Porting means transferring your existing mortgage deal, including its interest rate and terms, from your old home to your new one. It is not automatic. Your lender has to agree, and it will assess you and the new property again as if you were applying for a new mortgage.

Why people consider it

• Your current deal has an early repayment charge, and leaving early would cost money
• You like your current rate and want to keep it
• You do not want to arrange a whole new mortgage

What can make it harder

• You need to borrow more. If your new home costs more, the extra borrowing is usually a separate loan at the lender's rate at that time, so you end up with a mix of rates.
• Your circumstances have changed. The lender will look again at your income, outgoings and credit history.
• The new property does not suit the lender. Some properties, such as certain types of flat or non-standard construction, may not be accepted.
• Timing. Many lenders only allow porting within a set period around the sale and purchase, so the dates need to fit.

Compare it with a new mortgage

The fact that you can port does not mean you should. Compare:

• The cost of leaving your current deal, including any early repayment charge
• The rate and fees on a new mortgage
• The rate on any extra borrowing if you port
• The total cost over the length of the deal, not just the monthly payment

Getting the timing right

Moving home involves a sale, a purchase and a mortgage, and each depends on the others. Tell your adviser your plans early so the mortgage offer, the valuation and the legal work can be lined up. If your sale and purchase complete on different days, your solicitor and adviser can explain how to manage the gap.

Moving out of the area

If you are moving between areas, for example from London to Essex or Hertfordshire, the property type and the legal work may differ, and that can affect which lenders will lend. See how we help home movers, or find your area on our areas we cover page.

Talk it through

If you would like us to compare porting with a new mortgage for your move, get in touch.