Porting Your Mortgage: A Guide to Moving During a Fixed Term

 

As a homeowner in a fixed-rate mortgage, considering a move might have you asking: Can I transfer my mortgage to my new home?

The positive news is that, often, you can, and your mortgage advisor can help you determine if this is the best advice and manage the application process on your behalf!

This process is known as porting your mortgage. It’s a clever way to relocate without losing a favourable rate or facing those pesky early repayment charges (ERCs).

In this guide, we'll explore how porting works, what to keep an eye on, and how to decide if it’s the right fit for your circumstances.

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What Is Porting and Why Should You Care?

Porting involves transferring your existing mortgage, including the rate, term, and lender, to your new property.

For those with a competitive fixed rate, porting helps you to:

• Bypass hefty ERCs for ending your term early
• Maintain a lower interest rate even when market rates are climbing
• Simplify the process compared to taking out a brand-new mortgage

But remember, porting isn't automatic and it might not always be beneficial for you.

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Is Your Mortgage Portable?

Most fixed-rate mortgages can be ported but checking your terms is crucial. Here’s what to discuss with your mortgage advisor:

• Is porting an option under your current deal?

• Will a new affordability check be required?

• What are their timelines for concluding the sale and purchase?

• Are there any applicable fees?

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Porting in Practice: What to Expect

1. Affordability Remains Crucial

Even if you stick with your lender, they’ll treat this as a new application. If your income has changed or your financial commitments have grown then approval isn’t a given.

2. The Property’s Profile Matters

Lenders will assess the new property similarly to the old one. If higher risk (e.g., non-standard construction) is considered, they might deny the port or offer stricter terms.

3. Need More? You May Have to Borrow

If your new home costs more, you’ll likely need to “top up” your mortgage. This additional borrowing will have its own rate which may be higher or lower than your current rate.  

4. Selling for Less? Partial ERCs Could Apply

If your new property costs less and you don’t need the full mortgage, ERCs might still apply on any leftover amount.

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Key Advantages for Current Homeowners  

✅ Retain Your Fixed Rate: If you locked in before rates rose, porting keeps your deal intact
✅ Dodge ERCs: Usually, fixed mortgages have ERCs of 1%–5%. Porting avoids this

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Potential Pitfalls to Consider  

❌ Porting is not automatically available: A change in your circumstances or lender criteria may mean you may not qualify.  
❌ Taking a Dual Rate may be a bit more confusing: Some clients may find having two different rates at the same time a little more complicated, but your mortgage advisor can help clarify things for you!  

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Should You Port or Start Fresh?

Even if your mortgage is portable, it might not be your best choice. If rates have decreased or your term nears its end, switching to a new mortgage could save you money, even with the ERCs. Consider:

• The cost of porting vs. switching your mortgage to another lender
• Your intended length of stay in the new home
• Any product fees or potential changes in your monthly payments

A mortgage adviser can crunch the numbers to help you evaluate your options.

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Final Takeaway: Moving Doesn’t Mean Losing Your Mortgage

As a homeowner, you’ve likely built equity and a credit record, which are assets in your favour when moving. If you’re in a fixed-rate mortgage, porting can lead you to a new property without losing out on your existing deal.

Check the fine details, do the calculations, and talk to an adviser before deciding. With informed planning, you can move without compromising your financial position and get the best possible deal for your circumstances.

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Do you have any questions about your mortgage?

If you have any questions, we are ready to help you. For mortgage advice with no broker fees, book your mortgage appointment with Quealy & Co Financial Services Ltd.

Our Financial Services team at Quealy & Co. is ready to help first-time buyers, current homeowners, and property investors. Contact our friendly team to find out how we can help you get the best deal.

Call us: 01795 505761⁠
Email us: mortgages@quealy.co.uk

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⁠**Your home may be repossessed if you do not keep up repayments on your mortgage.**

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Quealy & Co Financial Services Ltd. is authorised and regulated by the Financial Conduct Authority No. 919693