Porting a mortgage


Many are portable. When you are Moving house and take your existing mortgage with you to the new property, this is called 'porting'. Porting a mortgage is often the best option when you have an existing fixed mortgage rate for example. Mortgage interest rates, may have increased since you arranged the loan or you may have significant redemption penalties if you redeemed IE repay your mortgage when you move house. When you are Moving house and porting a mortgage a lender classes you as a new borrower for mortgage lending purposes. This means that an applicant needs to satisfy the same mortgage lending criteria that anyone applying for a new mortgage would. Therefore, if the applicant's circumstances have changed then mortgage lender may not approve the porting. Someone that has changed jobs with a reduced income or moved from employed to self-employed for example. Furthermore the maximum loan to value that the existing mortgage loan was agreed on will sometimes still apply. IE if the maximum loan to value on the existing mortgage was 75% then this may apply when porting a mortgage.

We have arranged many mortgages to be ported and this porting a mortgage is quite common. It is worth noting the potential pitfalls and finding out if you are able to port your mortgage before you go down the road of making an offer on a new home.

Moving house - unable to port your mortgage

If your mortgage lender will not allow you to port your mortgage, you will wither have to repay the mortgage, along with any early redemption charges specified in the original mortgage contract when you sell, and arrange a new mortgage on the purchase. The only other alternative would be to cancel the move.

Moving house with no existing redemption penalties

If you are fortunate enough to have no redemption penalties with your existing mortgage, Moving house can give you more options. You are then free to shop around for the best mortgage deal, ideally through an independent mortgage broker like Impartial.

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Impartial Mortgage & Protection is an Independent Mortgage Broker and Insurance Brokerage.

Head Office

Enterprise House, Ocean Way,
Southampton, Hampshire,
SO14 3XB

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02380 221700

As a mortgage broker, Impartial receives a fee from mortgage lenders, which is normally a small percentage of the loan we arrange. We may charge a fee of £200 payable on application depending on the complexity and work involved in your case. Please see your fee agreement for details of the fee charged for your case. The fee agreement will be provided prior to gaining your agreement to proceed.

Impartial Mortgage & Protection Ltd is an Appointed Representative of The Right Mortgage Ltd, which is authorised and regulated by the Financial Conduct Authority. Impartial Mortgage & Protection Ltd. Registered office: Enterprise House, Ocean Way, Southampton, United Kingdom, SO14 3XB. This website and its content is copyright of Impartial - © Impartial 2016. All rights reserved. Company registration number 09648996

The guidance contained in this website is subject to the UK regulatory regime and is therefore targeted at consumers based within the UK.

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