Porting a mortgage is the process of transferring an existing mortgage deal to a new property, essentially keeping the same terms of the loan, such as the interest rate and payment schedule
. This process allows you to maintain the competitive rates and favorable terms you secured in the past, even when moving to a new home
. Advantages of porting a mortgage include:
- Avoiding potential early repayment fees that you may have incurred if you remortgaged to a new lender
- Securing a competitive fixed rate, especially if you have a year or more left to run on your current mortgage
- Potentially lowering your overall interest payments if your new property has a lower value and you can secure a better interest rate
However, there are some circumstances where porting a mortgage may not be a good idea, such as if the current market rates are lower or the same as your current rate
. Additionally, not all mortgages are portable, and some lenders may impose additional conditions, such as requiring you to top-up your mortgage if the new property is more expensive
. When considering porting your mortgage, it is essential to:
- Check your mortgage agreement terms to ensure your mortgage is portable
- Consider the potential benefits and drawbacks of porting your mortgage, such as avoiding early repayment fees or securing a better interest rate
- Consult with a mortgage broker or financial advisor to determine if porting your mortgage is the best option for your circumstances
