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Porting your mortgage: Can you take your mortgage with you when you move home?

If you’re contemplating a move and currently hold a mortgage on your property, you might be curious about the possibility of ‘porting’ your mortgage to your new home. 

Whist many mortgages offer portability, it’s essential to understand what this means as well as the advantages and considerations to take into account. With insights provided by our partners at L&C, below we outline the concept and process of mortgage porting and explore the benefits to help you make an informed decision…  

What does it mean to port your mortgage? 

Porting your mortgage refers to transferring your existing mortgage rate to a new property when you move home. This option is typically available when you’re purchasing a new home and need additional borrowing before the term of your current mortgage deal ends. 

Benefits of porting your mortgage

There are several benefits to porting your mortgage that can make financial sense in certain situations. If you have an excellent mortgage deal or would incur substantial Early Repayment Charges by leaving your current mortgage, porting can be advantageous. 

Switching to a different mortgage deal may involve hefty fees, so it’s crucial to assess the potential costs. Seek expert advice from a mortgage advisor to determine if porting your mortgage or switching to a new deal is more cost-effective for your circumstances. 

Understanding the process of porting a mortgage

Transferring your mortgage requires more than simply updating the address on your mortgage agreement. You essentially need to reapply for your mortgage, even if the term and borrowing amount remain unchanged. 

Prepare to provide proof of identity, income and expenses, similar to your initial mortgage application. The lender will also conduct a valuation of the property you’re purchasing to ensure it meets their lending criteria. 

After assessing your application, the lender will confirm if your mortgage can be transferred to the new property. 

Porting your mortgage and borrowing additional funds 

If you’re moving to a property that requires a larger mortgage, you may need to borrow additional funds at a different rate. Check with your mortgage provider to confirm if they’re willing to lend you the additional amount. 

If you do require additional borrowing, consider aligning the term of the top-up deal with your current mortgage. This way, you can remortgage the entire amount onto the same deal when your current one ends. 

What to do if your lender denies porting

If your application to transfer your mortgage to your new property is denied, evaluate whether paying the Early Repayment Charges on your current mortgage is worthwhile to switch to a different lender. Compare the costs and benefits and decide whether staying with your current lender until the existing deal concludes is a better option.  

Think carefully before securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage. 

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