Porting Your Mortgage Explained

Main guide

How does mortgage porting work?

Mortgage porting is when you move your existing mortgage product from one property to another. The mortgage itself is usually repaid when you sell your current home, then a new mortgage is set up on the property you are buying, using the same product terms where the lender agrees.

This can be helpful if your current deal has a good rate or if leaving it would trigger an early repayment charge. Instead of ending the deal completely, you may be able to carry it over to your next home.

Why porting is not automatic

A common misunderstanding is that a portable mortgage can simply be transferred without checks. In practice, your lender will normally treat the move as a new application. They may reassess your income, outgoings, credit profile, deposit and the new property.

The lender also needs to be comfortable with the property you are buying. If the property does not meet their criteria, porting may not be possible even if your finances look acceptable.

Porting can be useful, but it needs to be checked carefully before you make assumptions about your budget or moving costs.

What will the lender check?

When you ask to port your mortgage, your lender will usually carry out affordability and eligibility checks. These checks can be similar to a standard mortgage application, even though you are already an existing customer.

The lender may review:

• your income and employment status
• your regular outgoings and credit commitments
• your credit history
• your deposit and sale proceeds
• the price and type of the new property
• whether you need to borrow more
• whether the timing of the sale and purchase fits their porting rules

If your circumstances have changed since you first took the mortgage, the lender’s decision may be different this time. For example, a change in income, new credit commitments, childcare costs or a change in employment could affect affordability.

If you need additional borrowing, the extra amount is often arranged separately. This means part of your mortgage may stay on your existing rate, while the new borrowing is on a different rate or product. This can create different monthly payments and different product end dates, so it is worth checking how it will work.

When porting may be useful

Porting may be worth considering if your existing mortgage rate is lower than current available deals, or if leaving the mortgage would trigger an early repayment charge. It can also be useful if your current lender’s porting process fits your sale and purchase timing.

However, the benefit depends on the full picture. You need to look at rates, fees, charges, monthly payments, affordability, property criteria and how long you plan to stay in the new home.

When porting may not work

Porting may not be available if your lender declines the new application, if your affordability no longer fits, or if the new property does not meet criteria. It may also be less attractive if the extra borrowing is expensive or if a new mortgage elsewhere gives a better overall result.

Some borrowers also find the split mortgage structure awkward. If part of the mortgage ends on one date and another part ends later, future remortgaging can become more complicated.

Early repayment charges and timing

One reason people look at porting is to avoid an early repayment charge. But the rules depend on your mortgage offer and lender. Some lenders require the sale and purchase to complete at the same time. Others may allow a short gap, but conditions can apply.

If there is a delay between selling and buying, it is important to check whether any charge is payable and whether it can be refunded if you complete on the new purchase within a set period.

Common mistakes to avoid

Do not assume that “portable” means “guaranteed”. A portable product only means the lender may allow the product to move, subject to approval.

Another common mistake is looking only at the early repayment charge. Sometimes paying a charge and taking a new mortgage may still be better overall, depending on rates, fees and future plans.

It is also worth checking the property early. Flats, unusual construction, short leases or valuation issues may affect whether a lender is willing to lend.