If you are thinking about moving home but you are partway through a fixed rate mortgage deal, one of your first questions is likely to be whether you can take your existing rate with you. The good news is that most mortgages allow you to do exactly that - and in some cases it can save you a significant amount of money. This is known as porting.

What does porting a mortgage mean?

Porting means transferring your existing mortgage - including the interest rate and remaining term - from your current property to your new one. Rather than paying an early repayment charge to exit your current deal and starting fresh with a new mortgage, you carry the existing deal across to the new purchase.

Most mortgages include a portability feature, but it is worth checking your mortgage documents or asking your adviser to confirm this before you start making plans around it.

Does porting mean I automatically keep my rate?

Not quite. Even where a mortgage is portable, you still have to apply to your lender as if you were a new customer. They will reassess your income and affordability at the time of the move, carry out a credit check, and value the new property. If your circumstances have changed significantly since you took out your original mortgage - for example if your income has dropped, you have taken on new debt, or you have had credit issues - the lender may not approve the port even if the mortgage itself allows it.

Assuming the application is approved, you keep your existing rate for the remainder of the deal period.

What if I need to borrow more for the new property?

This is where it gets slightly more complex. If the new property costs more than your current one and you need to borrow additional funds, the lender will typically split the mortgage into two parts. The ported amount continues on your existing rate. The additional borrowing is offered at whatever rate is current at the time - which may be higher or lower than your original rate depending on when you took out the original deal.

This means you could end up with two different rates running simultaneously, which can make budgeting feel slightly less straightforward but is generally manageable and can still be better than paying early repayment charges to exit the original deal entirely.

What if I am moving to a cheaper property?

If the new property is less expensive than your current one, you will need to repay part of the mortgage at the point of moving. Whether early repayment charges apply to the portion being repaid depends on your lender and your specific product terms. Some lenders allow a reduction in line with the sale price without charge; others apply the full early repayment charge to the amount being reduced. This is an important detail to check before committing to a purchase.

When does porting make financial sense?

Porting tends to make most sense when your existing interest rate is lower than what you could get on a new deal at the time of moving. If you secured a two or five year fix at a rate that has since risen significantly, carrying that rate across to the new property preserves a genuine financial advantage for the remainder of the deal period.

On the other hand, if rates have fallen since you took out your mortgage, it may actually be cheaper to pay the early repayment charge and remortgage onto a new lower rate deal with a different lender. The maths will depend on the size of the early repayment charge, how long is left on your current deal, and what rates are available in the market.

This is exactly the kind of calculation a mortgage adviser can help you with - comparing the cost of porting against the cost of switching, and making sure you choose the option that saves you the most money overall.

Does porting affect the mortgage term?

Not automatically. The remaining term on your ported mortgage stays the same as it was. If you need to extend the term - for example to keep monthly payments affordable on a higher purchase price - you would need to discuss this with your lender as part of the port application.

Are there any fees involved in porting?

Most lenders do not charge a specific fee for porting itself, though you will still have the usual costs associated with buying a new property - valuation fee, solicitor fees, and any stamp duty. If you are taking additional borrowing alongside the port, there may be a product fee on the new element. Your adviser will give you a full breakdown of all costs before you proceed.

What should I do if I am thinking about moving?

The first step is to speak to a mortgage adviser before you start viewing properties in earnest. An adviser can check your current mortgage terms, confirm whether it is portable, calculate the cost of porting versus switching, and give you a clear picture of how much you can borrow for the new purchase. Going into the property search with that clarity makes the whole process much smoother.

How Aspect Mortgages can help

The team at Aspect Mortgages are independent whole-of-market advisers. We will look at your existing mortgage, assess your options honestly, and help you work out whether porting or switching gives you the better outcome when you move.

To get the conversation started, call us on 01257 812345 or visit our home mover page.