How to port a mortgage

It lets you move your mortgage to a new property, helping you avoid fees, keep a good interest rate and save time on paperwork. But what does porting a mortgage involve? And are you eligible? This guide breaks it down step by step, so you know what to expect and how to prepare.

We’ll cover:

• What mortgage porting is and how it works
• When you could and shouldn't port your mortgage
• A step-by-step guide to the process
• The pros and cons of porting vs remortgaging
• How porting works with extra borrowing or downsizing

What is mortgage porting?

Porting a mortgage means taking your mortgage deal with you when you move home. That means you stay with the same lender and keep the same terms and conditions as your existing mortgage, including the interest rate.

Porting a mortgage can help you avoid Early Repayment Charges (ERCs) – the fees lenders charge when you repay your loan early.

Can I port my mortgage?

You might be able to port your mortgage, but it depends on your lender and your current agreement. Start by checking your mortgage documents, especially your offer letter, to see if porting is allowed. 

Even if your mortgage is portable, there are times when you might not be able to move it. For example: 

• Your financial situation has changed. You’ll need to prove you can still afford the repayments. 
• Your credit score has dropped. Lenders may reassess your eligibility. 
• Your lender’s criteria have changed. They might not approve the move under the new rules. 
• Your age. Some lenders have age limits and may not let you borrow past a certain age. They’ll look at how old you’ll be when the mortgage ends. 
• The type of property. Some lenders restrict the kinds of homes you can port your mortgage to, though exceptions may apply. 

Step-by-step guide to porting a mortgage 

Thinking about moving home and taking your mortgage with you? Here’s a simple step-by-step guide to help you understand how porting works. 

 1. Check your mortgage offer 

Start by checking your mortgage documents, especially your offer letter. Not all mortgages are portable, and even if yours is, approval depends on things like your finances, credit score and the new property. 

 2. Get a mortgage in principle

If porting is allowed, the next step is to get an agreement in principle. This is a quick check by your lender to see if you can afford the mortgage. You’ll need to provide documents like ID, payslips and bank statements.

3. Receive property valuation 

Your lender will assess the value of the new property you want to buy. They’ll check if it meets their lending criteria, which can vary depending on the type, location or condition of the home. 

 4. Submit your application 

Now you can apply to port your mortgage. If you need to borrow more, include that in your application. Your lender will carry out full checks on your finances and credit history. If everything is approved, your old mortgage will be paid off, and your new one will begin. You’ll also pay any fees at this stage. 

Benefits of porting a mortgage

Porting your mortgage can offer several advantages: 

• Avoid extra fees. You might not need to pay an Early Repayment Charge if you keep the same mortgage terms. 
• Keep your interest rate. If you locked in a low rate when you first got your mortgage, you can keep it when you move. This is helpful if rates have gone up. 
• Save time on paperwork. Your lender already has your details, so applying again can be quicker and easier. 
• Move to a bigger or smaller home. You might still be able to port your mortgage even if your new home costs more or less than your current one. 

Drawbacks of porting a mortgage 

Porting a mortgage has some downsides, too: 

• You might miss better deals. Staying with your current lender means you could miss out on lower rates from other providers. In some cases, remortgaging might be a better option. 
• Extra borrowing can be tricky. If your new home costs more, you’ll need to borrow more money. This means you’ll have two mortgage parts, which can be confusing. The extra loan might also come with a higher interest rate. 
• There may be extra fees. Even if you avoid an Early Repayment Charge, you could still face other costs like valuation, arrangement or legal fees. 
• You still need to apply. Even though you’re sticking with the same lender, you’ll need to go through the application process again. If your financial situation has changed, you might not meet their criteria. 

Mortgage porting vs remortgaging 

The main difference between mortgage porting and remortgaging is how you handle your loan when your circumstances change:

• Mortgage porting lets you move home while keeping your current mortgage deal. You stay with the same lender, but you may need to reapply. 
• Remortgaging means taking out a new mortgage, often when your current deal ends. You could stay with your current lender or switch to a new one, but you’ll need to apply again. 

Porting with additional borrowing 

If you're buying a more expensive home than the one you currently own, you might be able to take your mortgage with you and borrow extra money. In this case, you move your current mortgage deal to your new home.

If you need to borrow more, that extra amount will need a separate mortgage deal. It won’t have the same interest rate as your original mortgage.

Example:

• Your current home is worth £250,000. 
• You still owe £140,000 on your mortgage. 
• When you sell, you’ll have £110,000 left over (your equity). 
• Your new home costs £400,000. 
• You move your £140,000 mortgage to the new home, keeping the same deal. 
• You use your £110,000 equity to help pay for the new property. 
• You still need £150,000 to make up the full price, so you take out a new mortgage for that amount. This new loan will have a different interest rate and terms. 

Porting with a smaller mortgage

You can also port your mortgage if you’re borrowing less than your current loan. This is known as a partial port. In this case, you keep your existing mortgage rate on the amount you still need. But you might have to pay an Early Repayment Charge on the part of the loan you no longer use.

Example:

• Your current home is worth £220,000.
• You still owe £160,000 on your mortgage. 
• When you sell, you’ll have £60,000 left over (your equity). 
• Your new home costs £170,000.
• You move £110,000 of your mortgage to the new home. 
• You use your £60,000 equity to help pay for it. 
• You no longer need the remaining £50,000 from your old mortgage, so you might have to pay an Early Repayment Charge on that amount.