Mortgage Options When Moving Home
When you move to a new property, you have several mortgage options. You could port your existing mortgage, take it with you to your new home. Alternatively, you could repay your current mortgage and take out an entirely new one. Or you might port part of your mortgage and borrow additional funds on a new deal. Each option has pros and cons depending on your circumstances and current deal.
The best approach depends on your existing mortgage terms, how much you need to borrow for your new home, current market rates, and any early repayment charges that might apply if you don't port your existing deal.
Porting Your Mortgage
Porting allows you to transfer your current mortgage deal to a new property. This can be useful if you have a competitive rate you want to keep, or if you'd face early repayment charges for ending your deal early. However, porting isn't automatic - you'll need to reapply and meet your lender's current criteria, and your new property must meet their requirements.
If you're borrowing more than your current mortgage balance, you may be able to port your existing deal and take an additional mortgage for the extra amount. This additional borrowing will usually be on a different, potentially higher, rate. Not all lenders offer this flexibility, and the terms can be complex.
When to Get a New Mortgage
Sometimes a completely new mortgage makes more sense than porting. If your current rate is no longer competitive, or if you're near the end of your fixed term anyway, starting fresh with a new lender could save you money. Calculate whether any early repayment charges are offset by the savings from a better rate.
A new mortgage also means a new application process, but this can work in your favour if your circumstances have improved - higher income, better credit score, or increased equity could unlock better rates than you had before.
Compare Home Mover Deals
Whether you're porting, switching, or starting fresh, our brokers can compare the options and find the best deal for your move. We'll calculate the true cost of each approach, factoring in early repayment charges, arrangement fees, and interest rates, so you can make an informed decision. Complete our form for free, no-obligation advice.