Understanding mortgage porting: everything you need to know

What is mortgage porting?

Mortgage porting is the process of transferring your existing mortgage from your current home to a new property. Essentially, it allows you to keep the same mortgage terms, interest rate, and conditions when you buy a new property, without needing to take out a completely new mortgage. This can save you time, money, and hassle, especially if you’re happy with your current mortgage deal.

How does mortgage porting work?

Here is a simple breakdown of how mortgage porting works:

1. Check if your mortgage is portable
   Not all mortgages are portable, so the first step is to check with your lender to confirm whether your mortgage allows for porting. If your mortgage is portable, the lender will guide you through the process.
2. Find your dream Story home
   The next step is to choose your new Story Homes property! Our homes are designed to offer the perfect blend of high specification, modern living and timeless style, making them the ideal choice for you and your family.
3. Apply to port your mortgage
   Once you’ve found your new Story home, you’ll need to apply to your lender to transfer your mortgage. Your lender will review your new property and your financial situation to ensure everything is in order.
4. Top-up your mortgage (if necessary)
   If the new home is worth more than your existing property, you may need to “top up” your mortgage. This means borrowing more to cover the difference between the two properties. Any extra borrowing might be subject to a different interest rate, so it’s important to discuss this with your lender.
5. Complete the transfer
   Once approved, the transfer process begins. Your mortgage will be ported to your new property, and you’ll be ready to move into your new Story home!

Why should you consider mortgage porting?

There are several benefits to mortgage porting when moving to your new Story home:

• Keep your current mortgage rate
  If you have a favourable interest rate, particularly if you locked it in during a lower rate period, porting allows you to keep this rate on your new home. This can save you a significant amount over the life of the loan.
• Avoid early repayment charges
  If you were to pay off your mortgage early and take out a new loan, you may incur early repayment charges. With porting, you can avoid these penalties and keep your mortgage intact.
• Smooth transition
  Mortgage porting helps streamline the process of moving into your new home. It eliminates the need to apply for a brand new mortgage, saving you time and paperwork.
• Flexible for different property types
  Whether you’re buying a larger home, downsizing, or relocating to a different area, porting gives you the flexibility to move without disrupting your mortgage terms.

Things to keep in mind when you port your mortgage

While mortgage porting offers many advantages, it’s important to be aware of the following factors:

• Time limits
  Mortgage porting usually needs to be completed within a specific time frame – typically within 30 to 90 days of selling your current home. Make sure to coordinate your sale and purchase timelines accordingly.
• Top-up and interest rates
  If your new home costs more than your current property, you may need to top up your mortgage. This additional borrowing may come at a different interest rate, so it’s essential to understand how that could affect your monthly repayments.
• Fees
  Some lenders charge administrative fees for processing the porting request, so be sure to enquire about any potential costs before proceeding.

Further questions? 

If you have more questions about mortgage porting, check out the below video we shot with Damien Byrne, Mortgage and Insurance Advisor at Wise One UK. It’s packed with helpful advice to guide you through the process and make your move as smooth as possible.