A Guide to Mortgage Porting

If you’re planning on moving house, you’ll likely be considering moving your mortgage with you. Transferring mortgages is common, but it’s essential that you completely understand the process and what’s involved when porting a mortgage. Here, we’ll explain how porting a mortgage works, calculating the costs, and more.

What does it mean to port a mortgage?

This simply refers to the process of transferring a mortgage to another property. As a homeowner, it’s likely that at some stage during your mortgage term, you may want to move. Porting a mortgage means moving your mortgage to a new house, which can ensure you avoid any early repayment charges (ERCs).

Mortgage terms can last for most of your adult life, and it’s extremely common to move house during that time. You may need to relocate for work at some stage, want to move closer to family, buy a bigger house, or even downsize in retirement. Regardless of your motivation, making a move means porting a mortgage is worth exploring.

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How does it work?

Although the exact transfer process can vary depending on your situation, here’s a practical step-by-step guide to show you how porting a mortgage works:

1. Speak with a mortgage broker: Before you even start house-hunting, it’s worth speaking with a broker. They’ll check whether your current mortgage is portable, whether your lender is likely to approve the move, and whether porting makes sense compared to switching to a new deal (or another alternative).

2. Apply to your existing lender: Once you’ve found a property, your broker will help you submit the porting application to your lender. You’ll usually need to provide updated documents (payslips, bank statements, proof of address, etc.), as if you were applying for a new mortgage. Typically, your existing equity is used instead of a deposit.

3. Property valuation and underwriting: The lender will carry out a valuation of your new property and reassess your affordability. They’ll want to ensure no major changes to your finances and that the new property is suitable; non-standard constructions can be more complex.

4. Offer and legal process: If approved, your lender will issue an offer for the new property, clearly stating the interest rate (sometimes with conditions if you’re borrowing more). Your solicitor then handles the legal side of transferring the mortgage.

5. Completion: Once the legal work is complete, your existing mortgage is redeemed and re-applied to the new property. If you’re borrowing extra, this portion may be issued as a separate “top-up” loan, sometimes at a different rate.

How long does it take?

The process typically takes 1 to 3 months (4 to 12 weeks), depending on the lender and whether extra borrowing or complex property types are involved. Working with a broker can help avoid delays and ensure that all the paperwork is handled quickly.

Porting a mortgage to a cheaper property

If you’re downsizing or buying a cheaper home, you can still port your mortgage, but you may need to repay part of your loan. This is called a “partial redemption.” Some lenders will charge fees or apply early repayment charges on the portion of the mortgage you’re paying off.

It’s not a given that all lenders will let you reduce your loan-to-value (LTV) ratio when moving to a cheaper property as well. So, it’s important to check the numbers with a broker before making the move.

Porting a mortgage to a more expensive house

If you’re porting a mortgage and borrowing more, most lenders allow this, but not all of them. Borrowing extra on top of your existing mortgage is called “topping up” and often means a new, separate mortgage deal for the top-up amount. This may be a different rate from your current deal.

If you’re moving to a more expensive property, affordability checks will likely be stricter, and you’ll typically need to provide a larger deposit for the extra borrowing. A mortgage advisor can help you compare whether porting and topping up is better value than switching entirely to a new mortgage deal.

How much does it cost?

Porting a mortgage can sometimes be an economical way to transfer a mortgage and potentially avoid certain fees, but it isn’t always free. While you may save on early repayment charges (ERCs) by staying with your current lender, there are still several costs to budget for:

• Early repayment charges (ERCs): If you pay off more of your mortgage than your lender allows when moving to the new property (for example, if you downsize and need a smaller loan), you may face ERCs on the repaid portion.

• Arrangement or product fees: If you need to borrow extra when porting to a more expensive house, your lender will likely arrange the additional borrowing amount as a new loan, which could come with its own arrangement or product fee (sometimes baked into the interest rate).

• Valuation fees: The lender will need to value the new property you’re moving to, even if you’re porting an existing mortgage. Basic valuations can sometimes be free with certain lenders, but you may need to pay for a full valuation, and the price can depend on property size and value.

• Broker fees: We’ll introduce you to an experienced broker for a free initial consultation. As you proceed through the process, there may be fees for any services that involve handling the porting application and liaising with the lender. Keep in mind, this advice could save you hundreds or thousands in the long run.

• Solicitor fees: Because porting involves a new property purchase, you’ll need to pay for legal costs to arrange the move, and the price will depend on the solicitor you use and the complexity of the transaction.

• Stamp Duty Land Tax (SDLT): Porting doesn’t exempt you from paying Stamp Duty. If your new property is above the relevant threshold, you’ll still need to pay SDLT in full, or the regional equivalent if you’re in Wales or Scotland.

Mortgage porting calculator

Although there’s no specific calculator designed for mortgage porting, you can use our repayment calculator to work out what your new mortgage costs will be when you port.

Simply enter the new amount you are planning to borrow, factoring in the amount of equity you will have, along with a rate, term length and product type below:

How easy is it to port a mortgage?

How easy it is to port a mortgage depends on both your personal circumstances and the property you’re buying. Here are the main areas lenders will assess:

• Property value and loan size: If the property is significantly more expensive, you’ll need to prove you can afford the additional borrowing. If it’s cheaper, you may face ERCs on any balance you pay off.

• Property type and construction: Homes made from non-standard construction materials (or with unique features) can be more complex, as lenders may view them as riskier and harder to resell. This can make porting trickier unless you use a specialist lender.

• Income and employment: Self-employed borrowers may need to show at least 2 years’ accounts. Anything other than PAYE employment can complicate the process. So, contract work, fluctuating income, and reliance on bonuses or commission may require extra support.

• Affordability checks: Just like with your current mortgage - your outgoings, debts, dependants, and any other financial commitments are reassessed. If your financial circumstances have changed since your original mortgage (for the worse), porting may be more challenging.

• Credit history: Even if you’re staying with the same lender, they’ll want to look at your recent credit history. If you’ve had any instances of adverse credit since your original mortgage, you’ll likely have reduced options.

Can you port a mortgage with bad credit?

It’s still possible to port a mortgage with bad credit, but it depends heavily on the lender, as well as the severity and recency of the adverse credit. Minor credit issues, such as missed or late payments may be accepted, especially if they’re over a few years old.

However, more serious issues like recent CCJs, IVAs, or bankruptcy are harder to overcome, and most mainstream lenders won’t accept them. Some specialist bad credit lenders are more flexible, but they may not allow porting, meaning you’d need to remortgage instead.

If you have poor credit, it’s particularly crucial to use an experienced bad credit mortgage broker, as they’ll know which lenders are most likely to accept your application and whether porting is the best route or if you need an alternative plan.

Do all lenders allow it?

When you port a mortgage, your lender must approve the move, so it's essential to understand which ones allow porting and under what conditions. Here are a few examples of popular mainstream UK lenders and their approach to mortgage porting:

• Nationwide: You have the option of porting a Nationwide mortgage, which can mean keeping your current rate and any related product features. With additional borrowing, you don’t have to pay an ERC; however, with a partial port (borrowing less), an ERC will apply to the difference.

• Halifax: Porting a Halifax mortgage is possible, but it can vary across home loans, so you’ll need to check your original Mortgage Offer letter. Your affordability will be assessed again, and you may not be able to port your mortgage rate if your circumstances have changed.

• NatWest: Most NatWest residential mortgages are portable. However, you can’t port to a property you already own, you’ll need to pay a valuation fee, and if you’re borrowing more and it’s less than £10,000, that portion is charged at the NatWest SVR.

• Barclays: You can port your mortgage with Barclays, maintaining your existing rate and product when moving. However, timing and speed are crucial. If there are delays, ERCs may still be payable despite requesting a port because your new mortgage must start within 90 days of selling your current home.

You can compare the latest deals available from these lenders and more using our free mortgage sourcing tool below: