Porting a Mortgage: How It Works When You Move Home

Porting a mortgage means taking your current mortgage deal with you when you move home. It can save you thousands in early repayment charges. However, it isn’t automatic, and sometimes it costs more than starting again with a new deal.

This guide explains how porting works in the UK, what your lender will check, what happens if you borrow more or less, and when remortgaging makes more sense.

What Does Porting a Mortgage Mean?

When you port, you aren’t really moving the loan. Instead, you move the deal, meaning your interest rate and the time left on it. Your lender pays off the mortgage on your old home and sets up a new one on your next home at the same rate.

Because it’s technically a new mortgage, you have to apply again. So your lender always has the final say on whether the port goes ahead.

Can You Port Your Mortgage?

Many deals from mainstream lenders are portable, but not all of them. The quickest way to find out is to check your mortgage offer or terms, which will say whether your deal can be ported.

Your lender will check affordability again

Your lender reassesses your income, spending and credit file, much as it would for a new customer. If your income has dropped, you’ve missed payments or the lender’s rules have tightened since you took the deal, the port could be turned down.

The new home has to meet the lender’s rules

The lender also looks at the new property and your loan to value, which is the size of your mortgage compared with the value of the home. Some lenders avoid certain types of property, so check before you make an offer.

How to Port a Mortgage Step by Step

Step 1: Check your deal and your early repayment charge

First, find out whether your deal is portable and how much it would cost to leave it. This tells you how much porting could actually save you.

Step 2: Speak to your lender before you make an offer

Next, ask your lender for a decision in principle on the new home. This shows roughly how much it will lend, including any extra borrowing.

Step 3: Make a full application

Once your offer is accepted, you apply properly. You’ll usually pay valuation and legal fees, just as you would with any house move.

Step 4: Line up the sale and the purchase

Ideally, both complete on the same day. That way, the old mortgage is paid off and the new one starts straight away, with no gap in between.

Porting a Mortgage and Borrowing More

If your next home costs more, you can usually port your current deal and borrow extra at the same time. The extra borrowing goes on a separate deal at your lender’s current rates, so your mortgage ends up in two parts.

For example, you might port £150,000 at your existing rate and add £70,000 on a new deal. The two parts can have different rates, fees and end dates, which makes switching later a little more fiddly.

Also, the extra part may come with its own arrangement fee. So compare the total cost of the move, not just the headline rate.

Porting When You Move Somewhere Cheaper

If you’re downsizing and need a smaller mortgage, you can still port the part you need. However, you’ll have to pay back the rest when you move, and your lender may charge an early repayment charge on that amount.

For example, if you owe £150,000 and only need £100,000 for the new home, the charge could apply to the £50,000 you pay back.

What Happens If You Sell Before You Buy?

Chains don’t always line up neatly. If you sell first, your old mortgage gets paid off, and you may have to pay the early repayment charge at that point.

Some lenders will refund that charge if you take out a new mortgage with them within a set time, but it isn’t guaranteed. For example, Nationwide gives you 180 days to complete your new purchase before you lose the right to port. Every lender is different, so ask yours before you sell.

Porting a Mortgage or Remortgaging: Which Is Better?

Porting usually makes sense when:

• your early repayment charge is high, because it’s often a percentage of what you owe
• your current rate is lower than the deals available today
• you only need to borrow a little more, or none at all

On the other hand, a new deal with a different lender can work out better when:

• your current deal ends soon, so the charge to leave is small
• rates have fallen and you could get a cheaper deal elsewhere
• you need to borrow a lot more, since the extra would be limited to your lender’s own rates

A whole of market mortgage broker can compare both options for you. Our guide on how to remortgage explains the process in more detail.

Other Costs to Budget for When You Move

Porting can save on early repayment charges, but moving still costs money. You’ll still pay stamp duty on the new home if the price is above the threshold, plus legal fees, valuation fees and any fee on extra borrowing.

Use our stamp duty calculator to work out the tax, and check the current stamp duty rates on GOV.UK.

Porting a Mortgage: Common Questions

Does porting a mortgage affect my credit score?

Your lender will usually run a credit check as part of the new application. One search on its own normally has only a small effect on your score.

Can I port a buy to let mortgage?

Some lenders let you port a buy to let mortgage, but the new property has to meet their rental rules. Check your terms and speak to your lender first.

Can I port my mortgage to someone else?

No. Porting moves your deal to a new property, not to another person. Adding or removing someone from a mortgage is a separate process with its own checks.

Can I still overpay after porting?

Usually, yes. Most deals let you overpay up to a set limit each year, often 10% of the balance. Try our mortgage overpayment calculator to see how much interest you could save.

Is Porting a Mortgage Right for You?

Porting a mortgage is a handy way to keep a good rate and avoid hefty charges when you move. Still, it isn’t always the cheapest route. So check your charges, speak to your lender early and compare it with a fresh deal before you decide.

For more on buying, selling and borrowing, head to our UK property guide.