A common situation we see is clients who are already tied into an existing mortgage deal — typically a fixed rate — but now want to move home. This is where porting comes in.

Many people aren't aware that porting is even an option, and depending on your circumstances it can be a more cost-effective way of buying a new property than remortgaging. This guide explains what porting involves and how to think about whether it's right for you.

What is porting?

Porting a mortgage means repaying your existing mortgage when you sell your property, then taking out a new mortgage on the same terms with your existing lender. You're essentially carrying your current deal across to a new property.

This can be advantageous if you have a lower interest rate than you'd get on a new deal today, or if you're partway through a fixed period and would face Early Repayment Charges by switching lenders.

Although you keep the same terms, you'll still need to apply much like you did the first time round — declaring your income, financial commitments, and going through credit checks again.

How porting works

Step 1: Check your eligibility. Speak to your mortgage adviser about whether porting is even possible. It depends on your lender's policies and the specific terms of your deal — not every mortgage is portable.

Step 2: Reapply. Even if your mortgage is portable, you need to go through a fresh application process. That includes credit checks, affordability checks, and a property valuation. This matters because your circumstances may have changed in ways that affect what you're eligible to borrow.

Step 3: The actual port. Once you're officially approved, the proceeds from selling your old property pay off your existing mortgage. Once the purchase of the new property completes, you'll have the same deal carried over — on the same rate, with the same end date — until it expires.

The benefits

• You keep your current rate. If you locked in a lower rate than what's currently available, porting lets you keep it rather than moving to today's pricing.
• You avoid Early Repayment Charges. Staying with the same lender means you don't trigger ERCs partway through a fixed deal.
• It can streamline the move. Porting often involves less paperwork and faster completion times than starting fresh with a new lender.

The drawbacks

• Not every mortgage is portable — and even when it is, you still need to qualify based on current circumstances, not the ones you had when you first took it out.
• You might miss out on better deals. Even if your current rate is good, the market might offer better pricing by the time you move.
• ERCs can still apply. If you're only porting part of your mortgage (for example, because you're borrowing more for a more expensive property), Early Repayment Charges may still kick in on the part that doesn't carry over.

Is porting right for you?

Porting isn't the right answer for everybody.

If you're moving to a more expensive property, you may need to borrow more on top of the ported amount. If the lender doesn't think you can meet affordability requirements, they'll decline. If you can borrow more, you'll often end up with two separate loans — one on your existing rate, one on a new deal — which can complicate things later if you want to remortgage.

If you're moving to a similar-valued property and your existing rate is attractive, porting can be a smart move.

If your mortgage isn't portable, your financial situation has changed, or you want greater flexibility, seeking a new mortgage deal might be more beneficial — even with ERCs factored in.

The bottom line

Before making any decisions, it's worth getting a clear comparison of porting vs remortgaging based on your specific numbers — including any ERCs, the rates you'd qualify for now, and what your circumstances look like.

If you'd like to talk through your options, get in touch with the team. We can run the comparison and walk you through which route makes most sense for your move.