Porting

What is Porting?

Porting means taking your existing mortgage product with you when you move to a new property. Instead of paying early repayment charges to exit your current deal and arranging a completely new mortgage, you transfer the same rate and terms to your next home. Most UK mortgage products are described as "portable," though this is not guaranteed.

Why it matters

If you are partway through a fixed rate deal with significant early repayment charges, porting can save you thousands of pounds. For example, if you have three years left on a five-year fix with a 3% ERC on a £200,000 balance, exiting the deal would cost £6,000. Porting lets you avoid this charge entirely while keeping a rate you may have locked in at a more favourable time.

How the process works

Porting is not as simple as just moving your mortgage across. Your lender will treat it as a new application for the new property, meaning you must pass their current affordability checks and the new property must meet their lending criteria. If you are buying a more expensive property, you will typically need additional borrowing on top of your ported amount, and this extra portion will be on a separate, current rate.

If you are downsizing, you may need to repay part of the mortgage. Some lenders allow partial repayment without ERCs when porting, but others do not -- check your terms carefully.

Practical considerations

The timing of porting can be tricky. You usually need to complete the sale of your old property and the purchase of your new one on the same day or within a very short window. If there is a gap, the port may not be possible and you could face ERCs.

Important caveats

Although most mortgage products are described as portable, lenders are not obliged to approve the port. If your financial situation has deteriorated or the new property does not meet their requirements, they can decline. Always have a backup plan and check with your lender early in the process to understand what is required.