Moving home but want to keep your current mortgage rate? Discover how mortgage porting works and what to consider before making your move.
Found your dream home but worried about losing the mortgage rate you secured a few years ago?
You might not have to. If your mortgage is portable, you may be able to take your existing deal with you when you move. This is known as mortgage porting.
It could help you keep a competitive rate and avoid an early repayment charge. But porting isn’t automatic. Your lender will still need to assess your circumstances and the new property, so here’s what to know before you put in an offer.
What is mortgage porting?
Porting means transferring your existing mortgage deal from your current home to a new property when you move.
For example, say you have £200,000 left on your mortgage at a fixed rate of 2.5%, with two years remaining. If your mortgage is portable and your lender approves the move, you may be able to transfer that £200,000 to your new property and keep your existing rate.
Most mortgages are portable, but that doesn’t mean every borrower automatically qualifies. Your lender will still assess your application.
Can I keep my mortgage rate when moving house?
Potentially, yes. Your lender will usually look at your income, outgoings, credit history, affordability, the new property, and your overall borrowing needs.
This matters most if your circumstances have changed since you took out your mortgage, for example if you’ve become self-employed, had children, taken on more borrowing, or your expenses have gone up. Any of these could affect how much you’re able to borrow.
What if I need to borrow more?
Say you currently owe £200,000, but your new home needs a £300,000 mortgage. You may be able to port the £200,000 on your current rate and borrow the extra £100,000 from your lender, though this additional amount may be on a different rate.
A completely new mortgage could sometimes work out better, so it’s worth comparing the options rather than assuming porting is automatically cheapest.
What happens if I can’t port my mortgage?
If your lender won’t allow porting, or you no longer meet their criteria, you may need to repay your existing mortgage and take out a new one. If you’re still within your fixed or discounted period, this could mean an early repayment charge.
Your options could include:
- Porting your existing mortgage
- Porting and borrowing more
- Taking out a completely new mortgage
- Waiting until your current deal ends
The right choice depends on your circumstances, the costs involved and the deals available at the time.
Is porting always the best option?
Not necessarily. A low rate can sound like the obvious win, but it’s worth looking at the overall cost of the mortgage, not just the interest rate. A new mortgage might offer better fees or flexibility, while porting could help you keep an attractive rate and avoid an ERC (Early Repayment Charge).
It’s also worth thinking about your wider financial plans. A bigger property could mean higher payments, which may affect what you can put towards savings, protection or your pension.
What should you do before moving?
Before you start house hunting, check whether your mortgage is portable and understand the terms of your current deal.
A mortgage broker can help you compare your porting options, early repayment charges, additional borrowing, new rates, fees, affordability and your wider goals, so you know your realistic budget before you find the perfect property.
Key takeaways
Porting could let you move home while keeping your current rate, but it’s not guaranteed
- Check whether your mortgage is portable
- Porting is subject to your lender’s criteria and a new affordability check
- Additional borrowing could be on a different rate
- You may face an early repayment charge if you can’t port
- A new mortgage could sometimes be better value
- Consider your wider financial plans alongside your mortgage
Moving home is exciting, but your mortgage shouldn’t be an afterthought.
Whether you’re up-sizing, downsizing or just ready for a change, Bee Financial can help you understand your options and find a strategy that works for you, looking beyond today’s rate to your longer-term goals.
Thinking about moving home? Speak to Bee Financial before you make your next move.
