The Mortgage Pod can help you port your existing mortgage deal
If you are in the midst of an existing mortgage and the time has come to move home, you have two main options. You could apply for a new home mover mortgage, which involves paying off (or ‘redeeming’) your current mortgage and applying for a new deal, usually with a different lender.
The second and often more often hassle-free option is to port your existing mortgage deal to a new property. If you’re wondering how that works, you’re in the right place. The Mortgage Pod team is here to guide you every step of the way.
Get Started with our team today.
What does ‘porting’ a mortgage mean?
Porting a mortgage is the process of transferring the mortgage on your existing property to a new property. You keep the same lender, the same interest rate, the same terms, and the same mortgage balance.
Can I borrow more or extend the term?
When you port a mortgage, it’s possible to change your mortgage term and even increase the loan amount if you’re purchasing a more expensive home. This increase in borrowing is known as additional borrowing or a “top-up.” However, it’s important to understand that the top-up mortgage will likely have a different interest rate and a different product expiry date from your original mortgage.
Are all mortgages portable?
Not all mortgage products are portable, so it’s important to check with your mortgage lender before you begin househunting.
How long do you have to port a mortgage?
Most mortgage lenders give you a specific window of time to complete the process. Typically, lenders have a grace period of up to six months to port your current mortgage balance from your current property to your new property.
However, the time frame varies from one lender to another, so be sure to check. Working with a professional mortgage adviser like The Mortgage Pod can help you avoid missing the deadline.
Is porting your mortgage the right option for you?
Here are some helpful pros and cons to help you decide whether to port your existing mortgage. If you are still um-ing and ah-ing or have more questions, please contact one of our helpful and friendly mortgage brokers.
Advantages of porting mortgages
Stay on the same terms
If your current mortgage deal has favourable terms, like a low fixed rate, porting allows you to keep it. This is great news if interest rates have shot up since you first took out your mortgage.
Simple and convenient
Staying with the same lender on the same terms means you avoid the hassle of applying for a completely new mortgage – welcome news when you have a house move to plan!
No early repayment charge
By porting your mortgage rather than redeeming your loan, you avoid the dreaded early repayment charges (or exit fees) that some lenders charge when paying off your mortgage early. Be aware, however, that you may incur other costs when moving home, like stamp duty, legal fees and valuation fees.
Disadvantages of porting mortgages
Limited options
If you port, then you are restricted to what deals your current lender is offering. If you want to explore additional borrowing, you could miss out on better deals elsewhere.
Complex admin
If you take on additional borrowing with your ported mortgage, then the end dates of each loan may not match up, which can be a headache. You may spend years trying to get the dates of each product to realign.
No guarantee of being approved
Porting is always subject to the lender’s criteria, so approval depends on your current circumstances. Your household income, loan-to-value ratio, and the value of the new property will be taken into account. You should never assume you will be automatically approved for a ported mortgage.
Is porting a mortgage worth it?
Porting can be an excellent option if you have a favourable mortgage rate and you’re satisfied with your existing deal. It’s often worth porting if you’re downsizing to a cheaper property, as it helps to keep things super simple.
Porting is also beneficial if you are upgrading to a more expensive home and want to keep the benefits of your existing mortgage deal. This is particularly attractive if your current interest rate was lower when you took out your original mortgage, vs current rates today.
If you’re keen to find a better deal than your current mortgage, then it’s best to explore home mover mortgages.
Why work with The Mortgage Pod to port your mortgage?
The team at The Mortgage Pod can help you decide whether porting your mortgage is right for you. We’ll review your existing mortgage deal, assess your new financial situation, and help you weigh the pros and cons of porting versus a home mover mortgage.
We can answer all your questions and manage the mortgage porting process to make your move as stress-free as possible.
You can get started with The Mortgage Pod HERE.
Frequently asked questions about porting a mortgage
Can I port my mortgage and borrow more?
It may be possible to borrow additional funds when you port your mortgage if you want to buy a more expensive property. It’s important to note that any additional lending may be at a different interest rate from your ported mortgage, and it may have a different product expiry date. This means you could end up with two different loans to manage.
Do you pay early repayment charges when porting a mortgage?
If you successfully port your mortgage to your new property, the good news is that you shouldn’t incur an early repayment charge. However, you should always check with your lender, as certain circumstances might still trigger fees.
Do you have a credit check when porting a mortgage?
Most lenders carry out a credit check when you apply to port your mortgage to ensure you meet their current lending criteria. Even though you’re staying with your existing lender, they will need to reassess your financial situation, including your household income and the loan-to-value ratio based on the new property. Check your credit score here.
Is porting the same as remortgaging?
Porting your mortgage and remortgaging are two different things. Porting means transferring your existing mortgage deal to a new property with the same terms and interest rate, to a new property. Remortgaging involves switching to a new mortgage product while in the same property, often with a different lender.
