What Is Porting A Mortgage?

Porting a Mortgage: your guide to taking your mortgage with you when you move 

When life’s winds of change blow, bringing the need to move to a new home, many homeowners wonder about the fate of their current mortgage. Porting a mortgage might just be the solution you’re looking for. Here, we explore what porting a mortgage entails, how porting a mortgage works, and why it might be the right choice for you as you embark on your next house purchase. 

What is porting a mortgage?

Porting a mortgage means transferring your existing mortgage – depending on its current term – from one property to another. It’s a feature that many lenders offer, allowing you to keep your current mortgage terms, including the interest rate, when you move to a new home. This can be particularly appealing if you’ve secured a favourable rate or terms that you’d like to maintain. Some mortgages are not portable so check the fine print and speak with the broker who initially arranged your mortgage. Or directly with your lender. 

How does porting a mortgage work?

Briefly this is how porting a mortgage works and the steps you have to take. 

Eligibility check. Some mortgages are not portable so check the fine print and speak with the broker who initially arranged your mortgage. Or directly with your lender. 

Application process. If you’re eligible, you’ll apply to port your mortgage to the new property. This usually involves undergoing the same affordability and credit checks as you did for the original mortgage. Your credit history, income and outgoings will all be checked.

Valuation and approval. Your lender will assess the new property to ensure its suitable security for the mortgage. If everything checks out, they’ll approve the port.

Advantages of porting your mortgage

Porting a mortgage offers several advantages for homeowners looking to move without losing their current mortgage terms. Here are five key benefits:

1. Maintain the interest rate. If you have a mortgage with a favourable interest rate, porting allows you to keep that rate, potentially saving you money compared to securing a new mortgage at a higher rate.

2. Avoid early repayment charges. Many mortgages come with early repayment charges if you pay off your mortgage before a certain period. By porting your mortgage, you can avoid these fees, as you’re not technically repaying the loan early, just transferring it.

3. Continuity. Porting can offer a sense of continuity, as you can maintain your existing mortgage product and terms. This can be particularly comforting if you’re happy with your current mortgage deal and lender.

4. Flexibility. Porting a mortgage is ideal for those whose circumstances change and need to move. Whether it’s due to a job relocation, needing more space, or downsizing, porting your mortgage can make the transition smoother.

5. Potential cost savings. While there may be fees associated with porting, they are often less than the costs of taking out a new mortgage, including application fees, legal fees, and potentially higher interest rates.

Remember, while porting a mortgage has its advantages, it’s essential to consider your personal circumstances and consult with a mortgage advisor to ensure it’s the right move for you. For those considering selling, especially in situations like selling a probate property, SellHouseFast.co.uk are cash house buyers and offer an efficient solution that can simplify your house sale process, allowing you to move on more swiftly and with less hassle. 

When can I not port my mortgage? 

Porting your mortgage is not always a sure thing, as various obstacles could arise. Shifts in your personal situation, like a drop in income or a dip in your credit rating, can impact whether you’re eligible. Moreover, if the new property doesn’t align with your lender’s requirements or appraises for less than anticipated, porting may not be an option for you. 

When selling your property for cash makes more sense 

While porting a mortgage offers numerous benefits, there are situations where selling your house for cash might be more advantageous. SellHouseFast.co.uk specialises in buying houses for cash, offering a fast, hassle-free way to sell your home. This can be particularly appealing if:

You’re dealing with a probate property. Sell your house fast for cash simplifies the process, allowing you to settle the estate swiftly.

You’re looking to move quickly. Cash sales can often be completed in a fraction of the time of traditional sales.

You’re selling a property with tenants. We can take the stress out of the procedure of dealing with sitting tenants. 

Explore your options with SellHouseFast.co.uk

Whether you’re considering porting your mortgage or selling your property to a cash house buyer, it’s essential to weigh your options carefully. 

SellHouseFast.co.uk provides advice and solutions tailored to your unique situation – we buy any house or flat – across the UK. If you’re moving and want to take your current mortgage with you, or if you’re exploring the advantages of selling your property for cash, reach out to us. Our friendly, expert team is ready to help you navigate your next steps with confidence.

Is it a bad idea to port a mortgage? 

Sometimes it’s a case of better the devil you know. Here’s 5 reasons why porting your current mortgage may not be a good idea.

1. Better deals elsewhere. If the interest rates have dropped since you secured your original mortgage, there might be more competitive deals available. Sticking with your current mortgage in this case could mean missing out on potential savings.

2. Property value and mortgage amount. If the value of the new property significantly differs from your current home, porting might not be straightforward. If the new property is more expensive and you need to borrow more, the additional amount might come with a different interest rate, complicating the deal.

3. Lender’s criteria not met. When moving to a new property, your lender will reassess your circumstances. If your financial situation has changed or if the new property doesn’t meet the lender’s criteria, porting might not be approved.

4. Early repayment charges still apply. If you’re increasing your borrowing, any additional funds might come with their own set of terms and early repayment charges. This could negate some of the benefits of porting.

5. Administrative hassle and costs. While porting can avoid certain fees, there might still be administrative costs involved in transferring the mortgage to a new property. Additionally, the process can be time-consuming and complex, depending on your lender’s requirements.

In these situations, it might be worth exploring other options, such as re-mortgaging with a different lender or even sell your house fast to cash house buyers like SellHouseFast.co.uk, especially if you’re looking for a quick and straightforward sale. We buy any house or flat. Always seek professional mortgage advice to explore all your options and make the best decision for your circumstances.