At The Levels Financial, we have helped countless clients to port their mortgages. But, what is porting a mortgage, why do people do it and how does it work? These are all questions that our highly experienced team of advisors get asked regularly. This article explains exactly what mortgage porting is, how it works and more.
- What Does Porting A Mortgage Mean?
- How To Port A Mortgage?
- Benefits Of Porting A Mortgage
- How Can The Levels Financial Help?
What Does Porting A Mortgage Mean?
Porting a mortgage is when you take your existing mortgage rate, with your current mortgage provider, including all of its terms and conditions when you’re moving homes. Porting a mortgage just means you ‘port’ your deal from your current home to your new home.
Essentially, if you’ve got an existing mortgage on your current property and you’re looking at moving, then you can port your existing mortgage to the new property that you’re purchasing and keep all of the deals, terms and conditions you signed up for with your current mortgage.
When porting your mortgage, it is important to remember that it is only the mortgage deal or the rate that is ‘ported’ to your new mortgage. The good news? If your current mortgage rate has any additional charges, for example, if you don’t have to pay early repayment charges, you wouldn’t have to pay them when porting your mortgage.
Tip: Most mortgages available are portable, so if and when you decide to move house, this could be an option you could look into.
How To Port A Mortgage?
Before starting the process of porting your mortgage, we do recommend speaking with an advisor to first check the terms and conditions of your current mortgage. This will help to confirm if your current mortgage is still the best option for you in your current financial situation.
Unlike when you’re remortgaging or buying your first home as a first time buyer with your first mortgage when you choose to port a mortgage, you will still need to apply to port your mortgage over to your new property with your current lender.
As with any mortgage application, your lender will then carry out certain checks, such as:
- Identity and proof of address checks
- Income and employment details
- Looking at recent bank statements
- Checking your credit score (learn more about credit score in our blog post, ‘What can affect your credit score’)
- Evidence of your deposit
- Checking your repayment history for credit cards or other loans
Once you’ve been approved to meet your lender’s eligibility requirements, the lender will value the property you intend to buy before approving or denying your application request. (Find out more about mortgage offer withdrawals in our blog post:’ Mortgage offers withdrawn – a guide).
Benefits Of Porting A Mortgage
Moving house can be a stressful time, especially when you’re working full-time and trying to juggle family life. So, what are the benefits of porting your mortgage to your next home? Benefits include:
- Keeping low-interest rates – if your existing mortgage for your current home has a favourable, fixed-term mortgage deal, by porting your mortgage to your current home you will be able to retain these low-interest rates
- Faster and more efficient – porting your mortgage from your current property to your new home may help you move ahead with your mortgage quicker as the lender will already have your details on file.
How Can The Levels Financial Help?
If you’re looking to port your mortgage, our team of mortgage advisors are on hand to help. Not only can we help you with the mortgage porting process, but we can also check to ensure you’re not missing out on a better deal by staying with your current mortgage and lender.
For more information about how we can help you or to book your free initial consultation, contact our friendly team today at admin@thelevelsfinancial.co.uk or call us at 01458 772040.
Please Note:
Your property may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1%, but a typical fee is 0.3% of the amount borrowed.
Please note, that when porting a mortgage, there are several key factors to bear in mind, so it can be helpful to speak to our team of mortgage advisors who will be able to help you understand every aspect of mortgage porting.
