Save money by porting your mortgage

6th September 2019

Couple smiling over paperwork

Moving home and want to save thousands of pounds on your mortgage? It might sound like a wild fantasy, but it could be a real option for you.

The way to do it is by porting your mortgage.

Porting isn’t available to everyone, but those who can port their mortgage could find that it’s much cheaper than remortgaging with a new lender.

What’s porting?

When you port your mortgage, you move your current mortgage to your new home.

You stay with the same lender and your mortgage deal stays the same too.

If you’re buying a more expensive home, and need to borrow more, you could take out a separate mortgage for the extra borrowing. You’ll probably have to take out the additional loan with the same lender you’re porting your mortgage with.

How do you save money?

There are several ways you could save money by porting your mortgage.

You wouldn’t have to pay:

  • early repayment charges on your existing mortgage

  • fees for setting up a new mortgage

And if you’re on a great deal, you get to keep it.

When’s the right time to port?

Porting your mortgage could be a good move if you took out a fixed-rate mortgage when interest rates were much lower than they are now.

It’s also worth considering if you’ve got a fixed-rate mortgage and you’d have to pay early repayment charges to end it. The longer your mortgage has left to run, the more you’ll save by porting.

Do all lenders let you port your mortgage?

Unfortunately not.

Another kicker is that most lenders who do will want to reassess your ability to pay, effectively treating you as a new customer.

If your circumstances have changed - if you’ve just become a freelancer with a variable income, for example - you might find it harder to prove that you can still meet the repayments.

Is porting for you?

“In the right circumstances, porting is a great way to save money,” said Ahmed Choudhry, a Mortgage Adviser at Trussle. “Moving is expensive so that extra money can make a big difference. It’s always worth asking your lender whether porting is possible, especially if you’re on a great deal.”

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