Can I move my mortgage to another property?

Can I move my mortgage to another property?

Can I move my mortgage to another property?

If you’re moving home, you might be wondering if you can take your existing mortgage with you. This is known as ‘porting’, and mortgages that allow you to do this are referred to as ‘portable’.

Kelly Whybrow Content Writer
3
minute read
posted

What are my mortgage options if I’m moving?

When you move home, you have the following mortgage options:

  • Porting your mortgage with your existing lender, possibly borrowing an additional amount if this is needed to cover the cost of your new home.
  • Taking out a new deal with your current lender to completely replace your existing mortgage.
  • Taking out a new deal with a different lender. This can either be to replace your current mortgage or you can use the value of the sale of your existing house to pay off your current mortgage and take out the new mortgage on your new home 
What are my mortgage options if I’m moving?

How do I begin porting my mortgage?

If porting is permitted and you decide you want to keep your existing mortgage, then you need to speak to your lender.

Porting doesn’t automatically happen, so you’ll need to discuss your situation with your lender or a mortgage broker. They’ll carry out a re-assessment of your financial circumstances – a very similar process to applying for a brand new mortgage – which could include an affordability and credit assessment.

What happens if I need a larger mortgage than my existing one?

If you port your mortgage and need to borrow more money to buy your new home, you have a couple of options. You can apply to increase your existing mortgage or borrow the extra money via a separate mortgage.  

If you opt for a second mortgage, you’ll have to pay any arrangement fees and will be making repayments on two mortgage deals simultaneously, so consider both options before deciding what’s right for you.

What happens if I need a larger mortgage than my existing one?

What are the other options to porting?

The alternative is to take out a new mortgage with a different lender, which is known as remortgaging. You would then use the new mortgage amount to pay off the old mortgage in full or use the sale of the house to pay off your previous mortgage.

If you’re considering switching mortgage lenders, then you need to find out if there are any early repayment charges on your existing deal and, if so, how much you’d have to pay. These charges could be as much as 5% of your outstanding mortgage amount, especially if the deal is in its first couple of years.

Almost every mortgage deal also requires you to pay an exit fee on termination, which is typically a few hundred pounds. It’s then important to weigh up whether the exit fees and early repayment charges make it worthwhile moving to a new mortgage. Plus, you could have to pay arrangement fees on the new deal – so factor those into your calculations too.

What if I can’t port and can’t get a replacement deal?

If you can’t port your mortgage and you can’t find a new lender to accept you, then you might need to put off your house move until you can prove to a lender that you’re able to keep up with the increased monthly mortgage payments. You can also get in touch with a mortgage broker to discuss your options.  

Find out more details on how you can get approved for a mortgage.

What if I can’t port and can’t get a replacement deal?

Time to compare

Whether you have a fixed or variable rate mortgage, it’s a good idea to shop around before your mortgage deal ends to see whether remortgaging or porting is the option for you. Compare using our mortgage tables. Just enter the house price, the amount you want to borrow and over how long and we’ll list the latest offers from a wide range of providers. 

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