Porting a Mortgage: A Smart Option When Moving Home

Are you planning to move house but unsure how your existing mortgage will be affected? You may have the option to port your mortgage, allowing you to transfer the terms of your current deal to your new property. This option could save you both time and money, especially if you’re locked into a fixed-rate mortgage or one that comes with early repayment charges. In this blog post, we’ll walk you through how mortgage porting works, its advantages, and how we can guide you through the process to determine if it’s the right option for your next move.

What is Porting a Mortgage?

Porting a mortgage allows you to transfer your current mortgage to a new property, retaining the same lender, interest rate, and mortgage terms. Essentially, you’re taking your existing deal with you when you move. This can be an attractive option if you’re locked into a good mortgage rate and want to avoid paying higher rates or early repayment charges (ERCs).

The process involves selling your current home, purchasing a new one, and applying to transfer your mortgage to the new property. Our expert advisers will assist you in transferring your mortgage while maintaining the same terms. It’s important to remember that we will handle the mortgage application, meaning you will go through the approval process for your new home with the lender under guidance from us. During this process, your lender will evaluate key factors such as the value of the new property, your current financial situation, and the suitability of the property for the mortgage transfer.

Key Benefits of Porting a Mortgage

Porting can offer several advantages when compared to switching to a new mortgage product. Here are the key benefits:

1. Keep Your Current Interest Rate

One of the main benefits of porting is that you get to keep your existing interest rate. If your current mortgage is on a lower fixed rate or a particularly favourable deal, porting ensures you can maintain this advantage, even when market rates have risen.

2. Avoid Early Repayment Charges

Many mortgage agreements include early repayment charges if you leave the mortgage during a fixed-term period. These charges can be costly, sometimes running into thousands of pounds. By porting your mortgage, you avoid paying these penalties, making the transition to your new home smoother and more affordable.

3. Potential to Borrow More

If you’re purchasing a more expensive property, you may need to borrow more than your existing mortgage covers. Most lenders will allow you to borrow additional funds, but this extra borrowing is typically offered at a new rate. You’ll have the benefit of keeping your current rate on the original portion while applying the new rate to the additional borrowing.

How Can We Help with Porting Your Mortgage

If you’re considering moving and want to know if porting your mortgage is the best option, our team of expert advisers are here to guide you through the process. They can:

• Review your current mortgage terms to determine if they can be ported.
• Help you understand the financial implications of porting, including additional borrowing options if you need a larger mortgage for your new home.
• Assist with the reapplication process, ensuring that you meet the lender’s criteria for the new property.
• Explore alternative options if porting isn’t the best fit for your situation, helping you find a mortgage solution that works for you.

Porting a mortgage can be a sensible way to save money and avoid the hassle of finding a new mortgage when moving.

If you’re planning a move and want to know more about how porting might work for you, please contact us on advice@larkbridge.co.uk or call 01284 729250.

Alternatively, book a meeting to speak to one of our advisers via our Book A Meeting link at the top of this page.