What you need to know about mortgage porting

As mortgage advisers, we often get asked by homeowners about the process of transferring their mortgage to a new property. This process is commonly known as “mortgage porting”.

What is mortgage porting?

Mortgage porting is the process of transferring your existing mortgage from your current property to a new one. This can be a great option for homeowners who want to move to a new property without having to pay early repayment charges or other penalties associated with breaking their existing mortgage contract.

How does mortgage porting work?

When you apply for a mortgage, you will typically have the option to include a “portability” feature. This means that if you decide to move to a different property in the future, you can transfer your existing mortgage to the new property.

However, it’s important to note that not all mortgages are portable, and the terms and conditions of porting will vary between lenders. It’s essential to check with your lender to see if porting is an option for your specific mortgage, and what conditions and fees might apply.

Typically, when you want to port your mortgage, you will need to re-apply for the mortgage with your lender. This means that you will need to go through the same application process as you did when you first took out your mortgage. Your lender will assess your financial situation and your eligibility based on their current lending criteria.

If you are approved for the ported mortgage, the existing mortgage balance will be transferred to the new property. Your mortgage lender will also need to make sure that the new property meets their lending criteria and that they are happy to lend against it.

It’s important to note that porting your mortgage doesn’t guarantee that you will be able to borrow the same amount of money as you did with your original mortgage. If your financial situation has changed, your lender may offer you a different mortgage product or interest rate.

What are the benefits of mortgage porting?

The main benefit of mortgage porting is that it can save you money on early repayment charges or other penalties that you may have to pay if you break your existing mortgage contract. This can be particularly useful if you are on a fixed-rate mortgage and want to move to a new property before the fixed-rate period ends.

Additionally, mortgage porting can be a convenient option for homeowners who are happy with their current lender and want to keep their existing mortgage product.

As experienced mortgage advisers, we can help you understand the process of porting your mortgage and guide you through the application.

Please note: a mortgage is secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. 

Author:
Stephen Bourke
Senior Mortgage & Protection Adviser
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