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What does porting your mortgage mean? And how do you port your mortgage?

13 Sep 2013

Answer:  Simply put, if you already own a home with a mortgage, and are moving to a new home, porting your mortgage means that you can apply your current mortgage to your new home subject to meeting the original mortgage offer terms and conditions which vary from lender to lender and also vary based on the original mortgage product.  Porting your mortgage can in some circumstances allow you to keep your mortgage at the interest rate that you currently have rather than having to risk getting a new mortgage with a potentially higher interest rate. 

Seek free advice to make sure porting your mortgage is your best option

If you can keep the interest rate from your old mortgage, porting mortgages are most common when there is an increase in interest rates.

Do be aware that when you port your mortgage, you will not normally be required to pay a mortgage release fee. This fee is determined by your mortgage lender and is explained in your mortgage contract.

Tips for Porting Your Mortgage

 1. Check your lender's porting criteria

You should check with your mortgage lender before you give up the idea of porting your mortgage.

2.  Move into your new home at the same time as you sell your current home

Ideally you will need to move into your new home within 6 months of selling your old home (subject to terms and conditions set out by your lender).

3.  Submit your application to port your current mortgage rate to your lender

If you are not approved, you can ask your mortgage lender for alternatives or you may have to reapply for a new mortgage for your new home.

4.  Your current mortgage doesn't determine your eligibility to port your mortgage

The approval process for porting your mortgage is sometimes the same as applying for a new mortgage. This means your lender may review your credit report, your debt to income ratio, and your employment history. If any of this has changed since you applied for your current mortgage, your application could be rejected.

5.  Don't port your mortgage without checking out other options first

Given that your lender will review your financial eligibility all over again and it may affect your chances of porting the mortgage, why not check that there aren't better deals available to you?  You could save yourself a lot of money by doing some comparison shopping.  Make sure that you use an independent mortgage broker rather than a mortgage broker who is tied to a particular bank or who is limited to certain mortgage products.  Independent brokers can look across the entire mortgage market to find you the best deal.  Independent brokers also often have access to special rates and deals that are not available on the high street.

Anthony Cusack
Anthony Cusack, Independent Mortgage Advisor can check to make sure you are getting the best mortgage deal

If you would like to check that you have the best possible deal on your mortgage, Anthony Cusack who is an experienced independent whole of market mortgage advisor can check to make sure that you have the best possible mortgage deal.  Anthony’s expert advice won’t cost you anything.  But not getting his advice might just cost more than you were counting on if you don’t make sure you have the best mortgage deal available.    

Call Anthony on 020 8280 9600 or click here to e-mail Anthony for your free, no obligation mortgage “check-up”.