What is Mortgage Porting?

Full Definition

Mortgage porting means moving your current mortgage product -- typically its interest rate and terms -- from your existing home to a new one when you move, rather than paying off the loan and taking out a fresh deal. Porting can let you keep an attractive fixed rate and may help you avoid early repayment charges that would otherwise apply if you redeemed the mortgage early. In practice, porting is treated as a new application: the lender reassesses your income, affordability and the new property's value, so approval is not guaranteed even if you are an existing borrower. If the new home is more expensive, you usually borrow the extra amount at the lender's current rates, creating a blended rate across two products. Note that buying a new property may trigger Stamp Duty Land Tax, which is separate from the mortgage. Compare the cost of porting against a new deal using a mortgage calculator, factoring in any fees, before deciding.

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