Porting a Mortgage

Most mortgages are portable and will allow you to move your current deal to a new property if you meet their criteria.

There is lending criteria to meet when porting a mortgage, therefore, if your income has reduced or your credit score is lower since you took it out you could struggle.

If you are buying a more expensive property and require additional funds, this will be a new loan application with your existing lender on different terms.

If you are buying a cheaper property, you may need to repay some of your loan back subject to the terms and conditions of your original mortgage which may include early redemption charges.

The documents that you will need to provide for porting your mortgage are the same as a normal mortgage application, these are:

• 3 months bank statements.
• 3 months evidence of earnings.
• Identification.

You’ll need to meet your lenders affordability criteria and pass a new credit check to qualify for the mortgage port.

Additional documents may be requested by your lender along the way, therefore, we’ll try to predict this and help you present your application in the best light to ensure a smooth port.

Yes, if you pass the lender’s criteria and affordability checks.  Porting a mortgage lets you transfer your deal to a new property, it’s not a guarantee of a loan on the new property.

If you are self employed and looking to port, you’ll be required to pass a new mortgage application with your lender, just like with a new self employed mortgage customer, there’s no difference.

You’ll need to evidence your income in the form of HMRC documentation such as a SA302 with tax overview documents and/or P60 etc.

If you are recently self employed then you might struggle porting a mortgage. There may be other mortgage lenders on the open market more suitable that will accept a minimum of one year’s accounts.

Yes, you can port a mortgage with bad credit if you are able to pass the lenders current credit score in the same way as a new customer would be assessed.

Maybe your credit score has reduced since you took out your original mortgage or you’ve had credit problems.  Getting an up-to-date copy of your credit report can help as mortgage criteria is based on when the bad credit happened, how much it was for, and if it’s now settled.

Every lender will have different criteria when it comes to bad credit mortgages therefore it’s important to seek professional advice ahead of making any moving plans, so you know these and what your options are.

Bad credit includes, county court judgements, defaults, missed payments, and a low credit score due to the conduct of your accounts.

No, not all mortgages are portable, although the majority are. Please note that even if your mortgage is portable, you’ll still have to pass the criteria, affordability checks, and credit score with your existing lender to port your mortgage to a new property. It’s a very similar process to a new application.

If you are approaching retirement you might struggle with porting your mortgage if you are looking to borrow additional funds, or your situation has changed since you took out your original mortgage.

There are lots of options for mortgages for the over 60s nowadays so it’s important to speak to a specialist retirement mortgage advisor, like ours, to know your options.

If your application gets declined for porting your mortgage, your options are:

1. Stay where you are in your current property until your situation improves.
2. Pay any early redemption charges that apply on your existing mortgage and switch to a new lender.

Our mortgage brokers will help you consider your mortgage options and let you know if you are able to qualify for a mortgage with a new lender on the open market.

There may also be an option to borrow more money on a new mortgage if you are able to qualify.

The benefits of porting a mortgage are:

1. Cost savings – one of the primary advantages of mortgage porting is the potential cost savings. By avoiding early repayment charges, homeowners can transfer their mortgage seamlessly, without incurring additional fees. This can be particularly advantageous if you are on a fixed-rate mortgage and want to maintain your current interest rate in a rising market.
2. Maintaining favourable terms – mortgage porting allows borrowers to retain the favourable terms of their existing mortgage. This includes the interest rate, loan duration, and other conditions negotiated at the inception of the mortgage. This stability can be especially crucial if market conditions have changed since the original mortgage was obtained.
3. Time scales – porting a mortgage eliminates some of the time needed for a new mortgage application as you are already known to the lender.

The disadvantages of porting a mortgage are:

1. Increased rates on additional borrowing – one of the primary disadvantages of porting a mortgage is that if you are buying a more expensive property and you need to take additional borrowing, this can be at a more expensive rate than what would be available on the open market.  Depending on the size of the additional borrowing, this can amount to a lot of additional interest paid.
2. Mortgage parts out of sync – if additional borrowing is required, this part will have a different product end date than your original mortgage.  In the future to remortgage, both parts will need to be on the lenders standard variable rate.  It’s important to try and get both deals in sync as much as possible to avoid you paying your lenders standard variable rate for long.  Your existing lender might offer you product transfer mortgage deals down the line also for you to consider.
3. Failing the application – your existing lender might not let you port your mortgage or you might not be able to borrow the additional money you require to move home.  In this instance and you still want to move, you’d have to consider paying any early redemption charges to switch to a more suitable lender.

Porting a mortgage can take anything from 14 days up to 3 months depending on the complexity of your application.

Your existing lender will also want to value your new home to ensure that it’s worth what you are paying. Additional surveys could also be requested.