Updated: March 03, 2022

Transferring a Mortgage to Another Property

Thinking about moving & need to transfer your mortgage to a new property? Mortgage porting can be easy! Find out the pros, cons & how to do it in our guide.

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Pete Mugleston

Author: Pete Mugleston - Mortgage Expert

Updated: March 03, 2022

If you’re moving home, you may be able to take your existing mortgage deal with you. This is known as mortgage ‘porting’. 

While porting may sound like the straightforward option for home movers, it isn’t always the right one. There are a number of factors to weigh up before you decide whether to stick with your current deal or remortgage to another product. 

We’ve rounded up everything you need to know to help you make your decision, including who to ask for any help or guidance you may need. 

Read on for more information or jump to the section that’s relevant to you via the links below…

Can you move your mortgage to another property?

Yes, it’s possible. If you’re moving home and want to take your mortgage with you, you should, in most cases, be able to do this through a process called mortgage porting. This is when you transfer your existing mortgage deal to a new property. You’re not moving the mortgage, just the interest rate and terms and conditions.

Not all mortgage products are portable so if this is something you’re considering, check the terms of your existing deal to see if it’s allowed.

If your current mortgage isn’t portable, you’ll have to remortgage to another product, which means you could be forced to repay a pretty hefty early repayment charge if you’re moving in the middle of a fixed-term deal.

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How does mortgage porting work?

Porting involves repaying your existing mortgage to complete the sale of your current property and renewing that mortgage with the same terms and interest-rate when you move into your new property.

So, even though you’re staying with the same lender, you’re asking them to re-lend to you. In order to keep the same mortgage terms as before you’ll have to re-apply. This is to ensure both you and your new property still match all of your lender’s eligibility criteria.

Many lenders will treat you in the same way as they would a brand new applicant so they’ll scrutinise your outgoings, ask for evidence of your income and will almost certainly want a valuation of the new property. They’ll also review your credit reports to see how good you’ve been in the past at paying your mortgage and other loans.

For the last several years, lenders have been required to impose even stricter criteria before approving mortgage applications, so just because you were approved initially doesn’t guarantee you’ll be given the green light now.

If you’re worried about your application, it’s best to talk to an experienced broker who’ll be able to review your circumstances and advise you on the best course of action.

A step-by-step guide to porting

Porting a mortgage should be a relatively straightforward process, if there’s been no significant changes in your personal circumstances since you first applied. These are the steps you’ll need to take:

Step one: check your mortgage is portable

Before you do anything, you need to check that your existing mortgage can be ported. Most mortgages are portable, but not all. Have a look at the terms and conditions of your current deal to find out.

Step two: weigh up the pros and cons

Think carefully about whether porting is the right move for you. There are plenty of advantages to porting – such as avoiding early repayment charges – but there are also downsides. For example, you could miss out on more competitive rates elsewhere.

Step three: speak to a broker with experience of mortgage porting

You can apply to port your mortgage directly with your lender. However, before you do, it’s best to talk to a broker who specialises in mortgage porting. They’ll be able to look at the rates, charges and fees of the deal you’re being offered and consider the overall cost of porting versus switching to a new deal.

The brokers we work with get access to exclusive deals and are able to negotiate with lenders on your behalf. If you get in touch we can arrange for a mortgage porting specialist to contact you directly.

Step four: get your paperwork in order

You’ve applied for a mortgage before but you’ll still need the right paperwork to get your porting application approved. Find out what your lender will require by using our mortgage application guide here.

You should also check there are no errors on your credit report. If there are, best to fix them beforehand – or at the very least add a note to your report explaining any late or missed payments. You can download your credit reports through our dedicated credit reports hub.

Can you borrow more if you’re moving to a more expensive property?

When your mortgage moves with you, you don’t have to borrow the same amount. If you’re moving to a more expensive property, you may, in some cases, be able to borrow more money. However, this can be tricky – and costly.

If you’ve built up equity in your home – or you have additional savings –  you can use this as a deposit towards your new property. But this may still not be enough. You might need to borrow more.

If you’re already close to the maximum they’re willing to lend to you, your lender may turn you down.

If you’re not, and you meet their eligibility criteria, they should allow you to borrow more.  Factors they’ll consider include: your age, income, employment status, credit history, and the type of property you’re buying.

A word of warning: the lender may insist the additional borrowing goes onto a separate new mortgage product, which could come with a higher rate as well as an arrangement fee.

Can you port to a cheaper property?

Yes, if you’re moving or downsizing to a cheaper home, porting should be straightforward, depending on the type of property you’re buying and the reasons why you’re doing this. You will still have to go through the full application process though.

Advantages and disadvantages of porting

There are benefits to porting but there are downsides too. Here are the main ones to consider…

Advantages

  • You may avoid a hefty early repayment charge if you decide to port your mortgage. Lenders often impose these fees if you want to switch deals before the end of your current term. They can run into thousands of pounds as the lender will want to recoup some of the interest it will lose out on if you switch to another deal with another provider.
  • If you’re on a competitive rate, porting allows you to keep it. You also won’t have to pay any extra arrangement or booking fees that come with remortgaging to a new product.
  • Your lender may be more likely to give you the go ahead to borrow more, if you need to, as you have a track record with them.

Disadvantages

  • You may miss out on better deals on offer elsewhere. You need to weigh up the overall cost of your mortgage – including any fees and charges – to work out whether it’s more cost effective to port your mortgage or remortgage to a totally new deal.
  • If you want to borrow additional cash, your lender may insist the extra borrowing goes onto a new mortgage product, with a potentially higher rate plus all associated costs such as arrangement and booking fees. You would also end up with two mortgages to repay, with two product end dates, which could make remortgaging to other lenders tricky.

Does your employment status make a difference?

Yes, your lender will look at your employment status as part of their affordability checks. If your employment status has changed since you first applied for a mortgage, you could find your porting application is turned down.

It’s best to speak with a mortgage porting expert if any of the following apply to you:

You’re self-employed

If you’re self-employed, most lenders will want proof of at least three years’ trading before accepting your porting application. Some will ask for two or even one year, and a handful will only require nine months. Again, it will come down to the individual lender.

You’re about to start a new job

Some lenders see new job starters as a risk because if the role doesn’t work out, you may be out of work soon and may not be able to meet your repayments. Some lenders like evidence of job security and may want you to be in a job for at least two years before giving your porting application the go ahead.

You’re on maternity leave

Your dip in earnings may be a red flag for your lender. However, most lenders will simply ask for the last payslip you received before going on maternity leave and a letter from your employer confirming what hours and salary you will be going back to work on.

You’re retired or you’re approaching retirement

Some lenders won’t consider lending to older borrowers. They may have an upper age limit of 75 or 85. If you’ve breached your lender’s upper age limit, you may struggle to get your porting application approved.

You’ve recently been made unemployed

You’re unlikely to get your application approved if you’ve recently lost your job, unless you have another job lined up to start soon. If you’ve signed a contract, you may get the green light, but it will depend on your lender’s own set of criteria.

Get matched with a porting expert

There are lots of factors to consider when deciding whether to port your mortgage or remortgage onto a new deal. A broker who specialises in mortgage porting can help you decide what to do. They can also find you the best rates and guide you through the process.

Give us a call on 0808 189 0463 or make an enquiry and get matched with a porting expert today. We hand-pick all the brokers in our network and rigorously vet them on your behalf so you can be assured you’re getting the best advice possible.

FAQs

How long does porting a mortgage take?

It can take anywhere between one and three months to get a porting request approved, depending on the strength of the application and lender’s requirements

Does the type of property affect porting?

Your lender might view you as higher risk if you’re moving to a non-standard property because they’ll be concerned about resale potential in the event they have to repossess and then resell it. Non-standard properties include: high rise flats, listed buildings and ex-local authority.

Can I transfer a buy-to-let mortgage?

Yes. Transferring a mortgage to a buy-to-let property works in a similar way to porting a normal residential mortgage. You’ll have to make an application to your lender who will then assess your eligibility using their specific criteria.

Can I transfer a Help to Buy mortgage?

You can but you’ll need to pay off your Help to Buy loan when you sell your property which is equivalent to 20% of the purchase price.

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Pete Mugleston

Pete Mugleston

Mortgage Expert

About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

FCA Disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms that are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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