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All About Mortgage Porting

  • 1 year ago
All About Mortgage Porting

If you’re thinking of moving but you don’t want to give up your great mortgage deal then you might be able to port it to your new property. In many cases this is the best thing to do, but not always, so you need to find out more about this process before taking any steps.

What is mortgage porting?

Mortgage porting is the process of moving your existing home loan deal to a new property.
Not all mortgages are portable and some that are designed to be portable can’t always be moved, especially if your circumstances have changed since you took out the deal.
You’ll have to apply to port your mortgage and if you no longer meet your lender’s criteria then your application might not be successful.

Not all mortgages are portable

If you have a shared ownership mortgage you almost certainly won’t be able to port it and some lenders simply don’t offer this service to anyone. Having said that, many products can be ported to new properties, so do ask your lender about your options.
If you can’t move your mortgage, you’ll probably have to pay an early repayment fee and remortgage to another product, although if you stay with your lender you might be able to negotiate.

Can you change the amount you borrow when porting?

Absolutely. You can ask to borrow less or even borrow more. As always, you need to get some independent advice to make sure you’re getting the best deal possible.
Don’t forget that you’ll have to reapply, even if you’re borrowing considerably less than you did with your previous home loan.

A step-by-step guide to porting your mortgage

If there’s been no great changes to your circumstances (or if they’ve improved) then your application should go fairly smoothly.

Here’s what you need to do.

– Check with your lender to see if it’s possible to port your home loan
– Look at the pros and cons we’ve listed below
– Talk to a mortgage broker who has experience with porting
– Get your paperwork together and apply to your lender

The advantages of porting

– You won’t have to pay early repayment fees as you’ll be staying with the same lender
– You’ll keep your existing interest rate, even if the market rates have increased since you took out your initial mortgage
– You won’t need to do quite as much work to apply to port your mortgage as your lender already has most of the information it needs

The disadvantages of porting

– There may still be better deals out there, so scour the market before deciding to stick with your existing product
– You’ll still have to pay various legal charges, such as valuation fees and application fees
– If you’re asking to borrow more, you might end up with two mortgages – one at your old rate and one at a new (possibly higher) rate

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