27th September 2024
When you move home, deciding what to do with your existing mortgage can be one of the bigger financial decisions you face. Porting your mortgage - transferring your current mortgage product to a new property – is an option offered by many UK lenders. But is it always the best way forward? In this article, we'll take a look at the benefits and drawbacks of porting a mortgage, helping you make the most informed decision possible.
Mortgage porting is the process of moving your existing mortgage, with its current rate and terms, from one property to another. This is an option usually available to those who are relocating but want to keep their current mortgage deal, especially if it has favourable terms or a low interest rate.
There are many situations where porting your mortgage is the best financial move for you, but it all depends on your current circumstances. Below are a few of the main benefits of porting your mortgage:
Although porting your mortgage is a viable option in some instances, it isn't always the best way forward. In some cases, remortgaging might be the better option for you. Below are some of the drawbacks of opting to port your mortgage:
Porting your mortgage is typically most advantageous in a rising interest rate environment, where your existing mortgage rate is lower than current market rates. It's also suited for those who face high early repayment charges and whose new property meets their lender's lending criteria.
As porting your mortgage is a long-term commitment, you should spend some time considering if it's the right move for you. Below are a few of the main things to think about before porting your mortgage:
Before deciding to port your mortgage, it's important to compare other mortgage deals on the market. Consider both the interest rates and the terms being offered. New deals may offer more flexibility or lower costs over the long term.
Porting a mortgage does not mean you avoid all fees. There are often fees associated with setting up the mortgage on a new property as if you were remortgaging. This means that there could be valuation fees or higher lending charges, especially if you are borrowing more.
Consider how your financial situation has changed since you took out your original mortgage. You might now qualify for better rates due to improved financial circumstances, which could make switching to a new lender more beneficial.
If you decide that porting your mortgage is the right move, the next step is to apply with your current lender, who will assess your application as they would for any new mortgage. This will likely involve an affordability assessment and a valuation of the new property to ensure it offers suitable security for the loan.
If you're unsure about which approach is best for you, then it's a good idea to speak with a professional mortgage advisor. Discussing your circumstances with our team at WIS Mortgages will help provide you with insights into the best way to handle your mortgage, ensuring that you have the most appropriate mortgage arrangement for your circumstances.
Porting your mortgage can be an excellent choice for maintaining favourable mortgage terms while moving homes. However, it's not suitable for everyone. It is therefore essential to weigh the pros and cons based on your specific circumstances, including comparing other mortgage offers and considering any changes in your financial situation. Ultimately, a thoughtful approach will help you determine whether porting your mortgage is the best way forward as you transition to a new home.
If you would like further guidance around porting your mortgage, then our team at WIS Mortgages would love to help. Please contact us today if you have any questions or would like our assistance.
As a mortgage is secured against your home it may be repossessed if you do not keep up the mortgage repayments.
Contact UsA. Porting your mortgage is a way to carry your existing mortgage - alongside current rates and terms - from your current property over to a new one. You can port your mortgage if you're buying a new home while selling your existing one.
A. Porting can be a great option, but it depends on your circumstances. For example, it can be a good way to retain favourable mortgage terms if the current market is dealing with high interest rates.
A. Generally speaking, porting a mortgage will take your lender anywhere from 30 days to three months to complete the switch. This should give you sufficient time to move into the new property.
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