The majority of High Street mortgages are portable. A portable mortgage simply means you can move it from one property to the next without penalty.
This comes into its own if you are moving house and are in the middle of a fixed rate deal because you can potentially avoid an early repayment charge.
Not all mortgages are portable. If you are with a specialist Lender then you may not have the option to port. A quick call to your Lender will confirm one way or the other.
Even when porting is an option, not all customers choose to do so. It could be that your Lender will not lend you the extra money you need to move.
Also, the additional funds will be on a different rate to the one you have on your current deal. Depending on what new deal you are offered you might decide to take a hit on the early repayment charge and swap to a different lender.
A sub account on your mortgage is created when you port your mortgage and the additional monies end up being on a different deal to the original one. This means that although you only have one mortgage and one direct debit, two different rates of interest apply.
Down the line having sub accounts can be quite annoying as the different products will overlap each other. To get them back aligned at some point will mean one of the sub accounts having to drift onto the lenders’ standard variable rate for a period of time.
We can offer mortgage advice when it comes to porting mortgages. If you are moving house and dealing with a buy to let mortgage or require support with a self employed mortgage, booking a free appointment with one of our dedicated mortgage advisors can help explore your options.
The Financial Conduct Authority does not regulate some types of buy to let or commercial mortgages.