Mortgage porting is a very popular solution for home owners during periods when interest rates are high. The process is tailored to borrowers who are intending to move home and would like to continue with the mortgage deal they already have. Their current deal may have been taken out at a time when interest rates were far lower than they are today.

If they were to switch to another mortgage, it may mean the interest rate would go up by a significant amount. In the worst-case scenario, it could mean moving becomes unaffordable and the home owner would be forced to remain in their current property for longer than they would like.

How does porting a mortgage work?

The idea is that if you move home, you can still make the same repayments on your mortgage by transferring your existing mortgage to the new property.

It is worth considering if you are looking at moving while your mortgage is still within its introductory phase. Many mortgages will have a period during which rates will be discounted. If you switch to a new mortgage, those rates will no longer apply, which could mean you’re looking at increased monthly payments.

Porting a mortgage would therefore allow you to continue enjoying the lower fixed interest rate, moving it to cover your new home instead. The mortgage would also have the same terms and conditions as the original mortgage, as it would be ported over to cover the new purchase.

What are the advantages?

Firstly, you won’t need to look for a new mortgage, since you will be retaining the one you already have. It will merely be attached to another property. Secondly, it could save you a significant sum of money each month. The bigger the gap between your existing fixed rate and the current interest rates on offer, the better the savings will be.

Can you use a porting mortgage in every scenario?

No. You can only usually port a mortgage that is on a fixed term deal. If you are paying a variable rate of interest, you will not be able to take advantage of this solution. Such deals also require you and your new property to meet several conditions before porting a mortgage becomes possible. However, if you do have a fixed term deal and you are considering moving under such circumstances, it would be wise to find out whether this type of deal could help you.

What should you do now?

If you are thinking about moving and you want to try and hang on to the fixed term deal you currently have, it is a good idea to speak with a professional mortgage broker. They will be knowledgeable about how and when porting a mortgage can occur.

If you wish to learn more, contact one of our dedicated consultants today for further advice. We are here to help, regardless of your circumstances. Complete our easy online mortgage enquiry form today and we will be in contact with you. We are specialists in providing independent mortgage advice and information.