Porting a mortgage could allow you to move house without giving up your existing mortgage rate. But how does mortgage porting work, can you borrow more, and is it always the cheapest option?
If you’re moving home while still tied into a fixed-rate mortgage, you might be concerned about losing a competitive interest rate or having to pay an expensive early repayment charge (ERC).
Fortunately, many UK mortgage lenders offer mortgage portability, which means you may be able to take your existing mortgage deal with you when buying another property.
However, porting isn’t automatic, and the fact that your mortgage is portable doesn’t guarantee your lender will approve the move.
In this guide, we’ll explain how to port a mortgage, how long the process takes, what it could cost and when arranging a completely new mortgage might make more financial sense.
What Is Porting a Mortgage?
Porting a mortgage means transferring your existing mortgage product to a new property when you move home, subject to your lender’s approval. It can allow you to keep your current interest rate and the remaining period of your mortgage deal rather than arranging a completely new product.
For example, if you have two years remaining on a five-year fixed mortgage at 2.5%, you may be able to retain that rate for the remaining two years when you move. This can be particularly attractive if mortgage rates have increased since you originally secured your deal.
However, there is an important distinction between transferring a mortgage product and transferring the mortgage itself. When you sell your current property, the mortgage secured against it is normally repaid. Your lender then arranges borrowing secured against your new home, with the existing mortgage product terms carried across where its portability criteria allow. So, although people often describe this as taking their mortgage with them, the process generally involves a new mortgage application.
Can I Port My Mortgage?
You may be able to port your mortgage if your existing product is portable, your lender accepts the new property and you meet its current lending criteria.
Many residential mortgage products offer portability, but the terms vary between lenders and individual mortgage deals. It’s important to check your specific mortgage offer rather than assuming your current rate can automatically be transferred to another property.
Even if your product is portable, the lender will normally reassess your circumstances before agreeing to the new mortgage.
How Do I Know If My Mortgage Is Portable?
The easiest way to check is to review your original mortgage offer or current mortgage product documentation. Look for a section covering portability, moving home or transferring your mortgage product. Alternatively, you can contact your lender or ask a mortgage broker to check the relevant conditions.
It’s worth establishing:
- Whether your existing mortgage product can be ported.
- How much of your current mortgage balance can be transferred.
- Whether you can borrow additional funds.
- Whether early repayment charges could apply.
- How long you have to complete the new purchase.
- Whether your lender will accept the type of property you’re buying.
Will My Lender Check My Affordability Again?
Yes, normally. One of the biggest misconceptions about mortgage porting is that approval should be straightforward because your existing lender already knows you.
However, the lender must usually carry out a fresh assessment of your income, expenditure, credit commitments and ability to afford the new mortgage. This means changes in your financial circumstances could affect your application.
For example, if you’ve recently become self-employed, changed jobs, taken on additional borrowing or experienced a reduction in income, your lender may assess you differently from when you originally obtained your mortgage. The new property must also meet the lender’s valuation and security requirements. A portable mortgage product doesn’t guarantee an approved mortgage application.
Can You Transfer a Mortgage to Another Property?
Yes. If your lender allows mortgage porting, you may be able to transfer your existing mortgage deal to another property when moving home. This is the same process commonly described as porting a mortgage.
For example, you might sell your current flat and purchase a larger family home while retaining the fixed interest rate on your existing mortgage balance.
However, transferring your mortgage deal to another property isn’t the same as transferring ownership of a mortgage to another person. If you’re looking to add or remove someone from your mortgage, that is a different process, often involving a transfer of equity. A transfer of equity changes the legal ownership of a property, and potentially the mortgage borrowers, subject to the lender’s consent and the necessary legal work. You don’t necessarily need to remortgage to another lender to arrange a transfer of equity, although the existing lender must agree to the proposed changes.
How to Port a Mortgage
Porting a mortgage involves several stages, and it’s sensible to investigate your options before making an offer on your next home.
1. Check Your Existing Mortgage Terms
Start by confirming whether your mortgage is portable and whether any restrictions apply. Your lender or mortgage adviser should also establish whether an early repayment charge would be payable if you decided not to port.
2. Calculate How Much You Need to Borrow
Consider the likely sale price of your existing property, the outstanding mortgage balance and the equity you’ll have available. You’ll then need to establish how much borrowing is required for your next purchase. Remember to budget for Stamp Duty, legal fees, estate agent fees, moving costs and any mortgage-related charges.
3. Compare Porting Against a New Mortgage
Don’t automatically assume that keeping your existing rate is the best option. Your mortgage adviser should compare the cost of porting with arranging a new mortgage, including any additional borrowing, product fees and early repayment charges.
4. Apply to Your Existing Lender
If porting appears suitable, you’ll normally need to submit a mortgage application to your current lender. Your adviser can do this for you. It will assess your affordability and credit circumstances using its applicable lending criteria.
5. Arrange a Valuation of the New Property
Your lender will need to confirm that the property you’re buying is suitable security for the mortgage. Property condition, construction, lease length and other characteristics can affect whether the application is approved.
6. Receive Your Mortgage Offer
Once the lender is satisfied with your application and the property, it can issue a mortgage offer setting out the agreed borrowing terms. If you’re borrowing more, the additional funds may be arranged on a separate mortgage product.
7. Complete Your Sale and Purchase
Your solicitor or conveyancer will coordinate repayment of the mortgage on your existing home and completion of the mortgage on your new property. The timing matters because some lenders impose specific deadlines or conditions for porting.
How Long Does It Take to Port a Mortgage?
Porting a mortgage typically involves a new mortgage application, so the process can take several weeks or longer. The exact timescale depends on your lender’s processing times, your financial circumstances, the property valuation and the progress of your sale and purchase. Even if the mortgage offer is issued relatively quickly, the overall conveyancing process may take considerably longer.
Common causes of delays include:
- Additional affordability or income checks.
- Complex self-employed income.
- Property valuation concerns.
- Requests for further documentation.
- Delays elsewhere in the property chain.
- Changes to the purchase price or mortgage requirement.
If you’re working towards a specific completion date, speak to your mortgage adviser as early as possible.
What If I Sell My Home Before Buying Another?
Some lenders allow a gap between selling your existing property and completing the purchase of your new home. However, their rules vary.
You may have to pay an early repayment charge when the existing mortgage is redeemed, with the possibility of a refund if the new mortgage completes within the lender’s permitted timeframe. Other lenders may have different arrangements or require the transactions to complete together.
Don’t assume that you can sell your current home, wait several months and still retain your mortgage rate. Check the lender’s conditions before committing to a sale or purchase timetable.
Can You Port a Mortgage and Borrow More?
Yes, many lenders allow you to port your existing mortgage product and apply for additional borrowing when buying a more expensive property. However, the extra borrowing will usually be arranged on a separate product at an interest rate available when you apply.
For example, suppose you have an outstanding mortgage of £300,000 at 2.5%, but you need a total mortgage of £450,000 to buy your next home.
If your lender agrees, you could potentially have:
| Mortgage part | Amount | Illustrative interest rate |
|---|---|---|
| Existing mortgage product being ported | £300,000 | 2.5% |
| Additional borrowing | £150,000 | 5.00% |
| Total borrowing | £450,000 | Two separate rates |
The rates above are hypothetical and do not represent currently available mortgage products.
This arrangement is sometimes described as a split mortgage.
How Do Blended Mortgage Rates Work?
When your mortgage has two parts with different interest rates, you can calculate a weighted average, sometimes called a blended rate.
Using the example above:
- £300,000 at 2.5% produces £7,500 of annual interest at that rate.
- £150,000 at 5% produces £7,500 of annual interest at that rate.
- Total initial annual interest is £15,000 on £450,000 of borrowing.
This gives an illustrative blended interest rate of approximately 3.33%. However, this doesn’t mean you have a single mortgage product at 3.33%. Each part can have its own fixed-rate expiry date, fees and early repayment charge conditions. Your monthly repayments will also depend on the repayment method and remaining mortgage term.
What Happens When the Two Fixed Rates End at Different Times?
This is one of the potential disadvantages of porting and borrowing more. For example, your existing mortgage deal might have two years remaining, while the additional borrowing is arranged on a new five-year fixed rate. When the original deal expires, the additional borrowing could still have three years left on its fixed rate. You may then need to arrange a new product for the first part while keeping the second part unchanged. Moving the entire mortgage to another lender before both fixed periods have ended could trigger an early repayment charge. This is why it’s important to consider the longer-term structure of the mortgage, not just the immediate interest rate.
Porting a Mortgage: Worked Example
Let’s look at how mortgage porting could work when moving to a property worth £450,000, and how the figures change if you buy somewhere more or less expensive.
For this illustration, assume:
- Your current property sells for £350,000.
- Your outstanding mortgage is £250,000.
- Your available equity is therefore £100,000.
- Your existing lender is prepared to consider a maximum total mortgage of £350,000, subject to its criteria.
These figures are hypothetical and exclude moving costs, fees and Stamp Duty.
Example 1: Moving to a £450,000 Property
If you purchase a new home for £450,000 and use your £100,000 equity as the deposit:
£450,000 purchase price − £100,000 equity = £350,000 mortgage required
You would need:
| Mortgage component | Amount |
|---|---|
| Existing mortgage to be ported | £250,000 |
| Additional borrowing | £100,000 |
| Total mortgage | £350,000 |
If your lender approves the application, you may be able to retain your existing rate on £250,000 and arrange the additional £100,000 on a separate product.
Example 2: Moving to a More Expensive £550,000 Property
Now imagine the property costs £550,000.
£550,000 purchase price − £100,000 equity = £450,000 mortgage required
That would mean:
| Mortgage component | Amount |
|---|---|
| Existing mortgage to be ported | £250,000 |
| Additional borrowing | £200,000 |
| Total mortgage | £450,000 |
In this example, the borrowing required exceeds the lender’s assumed £350,000 maximum by £100,000. You would therefore need a larger deposit, a higher borrowing limit from your existing lender or an alternative mortgage arrangement. Portability doesn’t override the lender’s affordability limits.
Example 3: Downsizing to a £300,000 Property
Suppose you decide to purchase a cheaper property for £300,000 instead.
Using the same £100,000 equity:
£300,000 purchase price − £100,000 equity = £200,000 mortgage required
Your existing mortgage balance is £250,000, so you would only need to port £200,000. The remaining £50,000 would be repaid. Depending on your mortgage terms, an early repayment charge could apply to that reduction, subject to any relevant allowances.
Alternatively, depending on your lender’s criteria, you may be able to port more of your existing mortgage by using less of your available equity towards the new property. For example, rather than using the full £100,000 equity as your deposit, you could use £50,000 and retain your existing £250,000 mortgage balance.
This could be worth considering if you’re on a particularly competitive fixed interest rate, as it may help you avoid an early repayment charge on the amount you would otherwise repay. But, retaining a larger mortgage also means continuing to pay interest on more borrowing, so the overall costs would need to be compared carefully.
However, this would depend on your lender’s affordability and loan-to-value requirements, and you would need to consider whether retaining the additional borrowing is financially worthwhile.
What Do These Examples Tell Us?
Porting a mortgage isn’t necessarily difficult because of the process itself. The challenge is making sure your existing mortgage product, new borrowing requirement and lender’s criteria all work together.
For someone moving to a more expensive property, the main issue may be affordability and additional borrowing. For someone downsizing, it may be early repayment charges on the amount they no longer need.
The best approach is to calculate the full borrowing requirement before deciding whether porting is worthwhile.
How Much Does It Cost to Port a Mortgage?
There isn’t one standard fee for porting a mortgage. Your costs will depend on your lender, the new property, whether you’re borrowing more and the terms of your existing mortgage.
Potential costs include:
- Mortgage product fee – May apply to additional borrowing or a new product
- Property valuation – May be required by the lender
- Legal and conveyancing fees – Usually payable when moving home
- Mortgage broker fee – Depends on the adviser and agreed service
- Early repayment charge – May apply if portability conditions aren’t met or part of the balance is repaid
- Other moving costs – Stamp Duty, estate agent fees, removals and surveys
Some lenders may waive certain mortgage-related fees, but you should check the terms of the specific arrangement.
Do You Pay an Early Repayment Charge When Porting?
Not necessarily. One of the main benefits of porting is that it may allow you to retain your existing mortgage deal without paying the early repayment charge that would otherwise apply if you ended it early. However, this depends on the lender’s portability conditions.
An early repayment charge may still arise if:
- You reduce your existing mortgage balance beyond an allowed amount.
- You fail to complete the new mortgage within the permitted timeframe.
- Your new application is declined and you redeem the existing mortgage.
- You choose a new lender instead of porting.
If you borrow additional funds, those funds will usually have their own product terms and may carry their own early repayment charges if repaid during a fixed or other chargeable period.
The important distinction is that additional borrowing doesn’t automatically trigger an early repayment charge on your existing mortgage. The charges depend on what is being repaid and the terms of each product.
What If My Mortgage Isn’t Portable?
If your existing mortgage product isn’t portable, you generally won’t be able to transfer its terms to another property. However, you may still have options.
Arrange a New Mortgage
You could apply for a new mortgage with your existing lender or another lender. If you’re still within a fixed-rate or other early repayment charge period, you may need to pay a charge when redeeming your existing mortgage.
Wait Until Your Existing Deal Ends
If your moving plans are flexible, waiting until the current mortgage deal expires may allow you to avoid an early repayment charge. However, delaying your move may not be practical, and mortgage rates and property prices could change.
Compare the Overall Costs
Sometimes paying an early repayment charge and arranging a new mortgage can still be worth considering. For example, a different lender may offer better affordability, a more competitive rate or a mortgage structure better suited to your circumstances. The decision should be based on the total cost and suitability of the available options rather than the early repayment charge alone.
Oportfolio Insight: Keeping Your Existing Mortgage Rate Isn’t Always the Cheapest Option
One of the biggest mistakes homeowners can make is assuming that porting must be the best choice simply because their existing mortgage rate is lower than the rates currently available. But that’s not always true.
Imagine you’re moving to a more expensive London property and need substantially more borrowing. You may be able to retain a competitive rate on your existing mortgage balance, but the additional borrowing could be offered at a less attractive rate. You might also find that your current lender won’t lend as much as another lender because it assesses your income differently. This can be particularly relevant for professionals receiving bonuses, commission, self-employed income or other complex earnings.
In some circumstances, arranging a completely new mortgage could provide a more suitable overall solution, even after accounting for an early repayment charge. Equally, if you have a large mortgage balance and a particularly low existing fixed rate, porting could be financially attractive.
At Oportfolio Mortgages, we’d want to compare the full picture:
- How much of your existing mortgage can be ported.
- The rate and remaining deal period.
- The amount and cost of any additional borrowing.
- The lender’s affordability assessment.
- Early repayment charges and mortgage fees.
- Monthly repayments and longer-term costs.
- Whether a different lender could offer a better overall arrangement.
The most important question isn’t simply whether you can port your mortgage. It’s whether porting is the right decision for your next home purchase.
Moving House? Speak to Oportfolio About Porting Your Mortgage
If you’re thinking about moving home and want to know whether you can keep your existing mortgage rate, Oportfolio Mortgages can help. Our mortgage advisers can review your current mortgage terms, check whether your product is portable and assess how much you may be able to borrow for your next property. We can also compare porting with alternative mortgage arrangements, taking into account additional borrowing, early repayment charges and your longer-term financial plans.
We regularly help London homeowners, professionals, self-employed borrowers and clients requiring larger mortgages or more complex income assessments. Whether you’re upsizing, downsizing or relocating, understanding your options before making an offer can help you avoid unexpected costs and delays.
Contact Oportfolio Mortgages today to find out whether porting your existing mortgage or arranging a new deal could be the better option for your next move.
FAQ: Mortgage Porting
Can I port my mortgage if I've been self-employed for under 12 months?
Potentially, but your options may be limited. Some lenders require an established history of self-employed income, while others may consider shorter trading periods or alternative evidence in certain circumstances. If you've recently become self-employed, your existing lender's current criteria will determine whether porting is possible.
Can I change property after receiving my mortgage offer?
Potentially, yes. If your purchase falls through or you decide to buy a different property, your lender may allow you to amend your application. However, it will usually need to assess the replacement property and may issue a revised mortgage offer. Changing property isn't the same as porting an existing mortgage when moving home.
Can I port my mortgage to a cheaper or more expensive property?
Yes, potentially. If you're buying a more expensive property, you may need additional borrowing on a separate mortgage product. If you're downsizing, you might need to repay part of your existing balance, which could trigger an early repayment charge. Both scenarios are subject to lender approval and affordability requirements.
How easy is it to port a mortgage?
Porting can be relatively straightforward if your circumstances haven't changed, your existing product is portable and your lender accepts the new property. However, it isn't automatic. You'll normally need a new mortgage application, affordability checks and a property valuation, so it's sensible to start the process early.
Can I transfer my mortgage to another person?
Not through mortgage porting. Porting means taking your existing mortgage product to another property, not transferring the mortgage to somebody else. If you want another person to take over responsibility for a mortgage, you'll need your lender's agreement, and the arrangement may involve a transfer of equity or a new mortgage application.
How do I add or remove someone from my mortgage?
You may be able to add or remove a borrower through a transfer of equity, subject to your lender's approval and the necessary legal work. The lender will normally assess whether the remaining or additional borrowers can afford the mortgage. You don't necessarily need to switch lenders, but the available options depend on your circumstances.
Should I use a mortgage broker to port my mortgage?
A mortgage broker can help you establish whether your existing deal is portable and whether keeping it makes financial sense. They can compare the costs of porting against arranging a new mortgage, including additional borrowing and early repayment charges. This can be particularly useful if you're moving home with a deadline or have complex income requirements.
