Before we answer the question, it’s probably worth defining the meaning of ‘porting a mortgage’. Basically, if you already have a mortgage and you want to move house you can either pay off your old mortgage and take out a new loan on the next property (if you need to) or you might be able to take your old mortgage with you to the new property. This is called porting your mortgage.
There are several reasons why porting your existing mortgage loan might be advantageous, especially if you currently benefit from beneficial loan terms. However, just because you might be able to port the loan in principle, there are various reasons why it may not work in practice.
The main issues revolving around mortgage porting relate to changes in circumstances. In other words, either the circumstances of the borrower have changed (e.g. changed job, become self-employed, changes in household income or expenditure) or changes to the lender’s loan criteria (e.g. maximum lending ratio to income, loan to value ratios, etc).
It is well worth doing some maths to establish whether porting your existing loan is attractive anyway. For example, are there better mortgage offers out there? Alternatively, are there any penalties for terminating your existing mortgage early and have you allowed for those costs and any new arrangement fees, etc that might be incurred by you if you settle your existing loan and take out another?
Sometimes, it might be worth porting your existing mortgage and taking an additional mortgage too. This is most likely to be with the same lender as part of a package, although, in principle, having two mortgages on one property is perfectly feasible. Of course, both parties must be aware of the arrangement and it is likely that one of the lenders (the one with the riskiest security) will be charging more for their loan to reflect additional risk.
In conclusion then, whilst porting an existing mortgage can be relatively straightforward in principle, it is critical that you calculate which option is better for you before making a decision. Furthermore, don’t commit to any contractual liabilities until you are sure you have a formal offer in place that suits your needs.
Contact us for further advice on mortgage porting and the pitfalls and benefits to each alternative.
Download our Free First Time Buyers Guide
Recent posts
According to a report in the Guardian, senior ministers have asked Treasury officials to look into a “proportional” property tax to see how it would work as an alternative to the existing stamp duty land tax on owner-occupied homes.
More than a quarter of UK adults in long-term relationships (26%) have reported that despite living together, they keep their finances separate from one another.
There has been a rise in both rent and mortgage costs over the last three years, with renters seeing a greater increase in their monthly payments than those with a mortgaged property.
Delayed Start Mortgages
14 days ago
The new Delayed Start Mortgage launched by Skipton Building Society allows first time buyers to postpone the first three mortgage payments. This product has been designed to help soften the blow of moving in costs for first time buyers.
Green Mortgages | Rewards and Benefits
16 days ago
Mortgage lenders are starting to recognise their “Green” responsibilities when it comes to the different products they offer.
A recent study by Boon Brokers where 1,000 people who had used an estate agent over the last year were surveyed, showed that a whopping 52% said they were pressured into using the estate agents’ in-house mortgage broker.
When will mortgage rates fall further?
26 days ago
Analysts are predicting further rate cuts this year, with the next one possibly coming down to 4% when the Bank of England’s Monetary Policy Committee meet on Thursday 7th August 2025.
The Financial Conduct Authority (FCA) has shared new changes to mortgage rules with the aim to simplify remortgaging, and encourage competition within the mortgage market.
More information
Trusted by
