If you move to a new property, you might be wondering about whether you can or should transfer your mortgage over – this is called porting a mortgage. There are many caveats to this, and it might not be the right option for you, so we’ve looked at some of the key points so you have all the information to hand.
Porting a mortgage is the process of transferring your existing mortgage to a new property if you choose to move home. In an ideal situation this means transferring both the interest rate and all terms and conditions of your initial mortgage and securing it to the new home, without incurring any early repayment charges.
Mortgages are secured against your current property and, in general, you will need to apply for a new mortgage if you want to relocate to a new property; you’ll have to pay off your existing mortgage before this is done. If you want to port your mortgage, you will need to reapply for it through your lender and secure the new one against your new property.
Yes, this would be porting. Porting is particularly popular if you have a good interest rate that you’d like to continue paying, however it is well worth noting that you may not qualify a second time round. Due to the fact that you are essentially reapplying for the same deal, yours or the lender’s criteria may have changed, meaning you might not be able to get the same rate you had before. 
There are a few disadvantages to be aware regarding porting your mortgage:
– Porting will incur various fees for valuation and legal costs
– Staying with your current lender may mean you miss out on better remortgaging deals elsewhere.
– If you are moving into a more expensive home, your existing mortgage may not cover it. This means you’ll have to borrow more money at a different rate, thereby leaving you with two loans rather than one.
Although it is not an easy process, porting your mortgage can be an attractive option if you want to try and keep the benefits of your existing mortgage when relocating. It could suit homeowners who are on a fixed-term mortgage who want to move without incurring early repayment charges, or those who signed up to a deal that is no longer available. Either way, you need to be sure you have all the pertinent information to make a decision, so speaking to a broker is key.
