Can you port your mortgage? If you already own a home and have a mortgage deal in place, moving can raise an important question: what happens to the mortgage? Many mortgage products are described as portable, meaning the product may be capable of moving with you to a new property. However, porting is not an automatic transfer and there are several points to understand before relying on it.
What Does Porting A Mortgage Mean?
Porting usually means applying to take your existing mortgage product to the property you are buying. You are not simply moving the loan from one address to another without checks. The lender will normally assess the new application under its current criteria.
Will The Lender Check Affordability Again?
Usually, yes. Your income, commitments and circumstances may have changed since your original mortgage was arranged. The lender will also need to be satisfied with the new property.
What If You Need To Borrow More?
If your new home costs more and you require additional borrowing, that extra amount may need to be arranged on a separate product. This can result in different parts of the mortgage having different rates or end dates.
Could Early Repayment Charges Apply?
If your existing deal has an Early Repayment Charge, moving without successfully porting the product could trigger a charge. The exact position depends on your mortgage terms, so it is important to review them before committing to a move.
What If Your Current Mortgage Is No Longer Suitable?
Porting is only one option. Depending on your circumstances, it may be worth comparing the cost and suitability of keeping the existing product with arranging a different mortgage.
Think About The Whole Cost Of Moving
Your mortgage is only part of the financial picture. Legal costs, moving expenses, surveys, any applicable property taxes and changes in monthly repayments should all be considered.
When Should You Review Your Mortgage?
Ideally, review your existing mortgage before you begin making firm offers. Understanding your equity, borrowing capacity and any charges can help you set a realistic budget for the next property.
How HFA Mortgage & Protection Can Help
HFA Mortgage & Protection can review your current mortgage, discuss your plans and help you understand the options available for your next move. Visit https://hfassociates.uk to start the conversation.
FAQs – Can You Port Your Mortgage?
- Is every mortgage portable?
No. Portability depends on the product and lender terms.
- Does porting guarantee I can keep my mortgage?
No. A fresh application and lender assessment are normally required.
- Can I borrow more when I port?
Potentially, subject to affordability and lender criteria. Additional borrowing may be on a different product.
- Could I pay an Early Repayment Charge if I move?
Possibly. This depends on your current mortgage terms and how the move is structured.
- Should I review my mortgage before putting my home on the market?
It can be very useful to understand your position before making commitments.
Disclaimer:
There may be a fee for mortgage advice. The precise amount of the fee will depend upon your circumstances but will range from £195 to £1500.
Your home may be repossessed if you do not keep up repayments on your mortgage.
