Porting your mortgage
Who is this page for?
If you’ve ever wanted to know more about porting a mortgage, this page is for you. From a basic definition through to the process involved, you’ll find all the information you need around moving a current mortgage deal to a new home.
If you are an existing customer looking to port your existing mortgage, you’ll find more information here.
What is porting a mortgage?
When you’re selling up and buying a new home, there are two main options for your current mortgage - pay it off and search for a new one, or port the deal you have over to your new home.
When porting, you won’t carry over your existing mortgage debt – as this is paid off from the sale of your house. But you may be able to carry across the interest rate you’re on and potentially other key terms of your existing deal.
How does mortgage porting work?
Mortgage porting is pretty similar to applying for a new mortgage as you’ll still need to submit a mortgage application form. Here’s how the porting process works:
- Reapply for your existing deal using the details of your new house and how much you’re paying for it.
- The property will be valued by the lender – just like if you were applying for a new deal – to check the house is worth enough for what you’re asking to borrow.
- A decision will be made and your lender will let you know whether you can move your mortgage deal.
- You’ll receive a new loan when you buy your new house and sell your old one.
The qualifying criteria for your current deal might have changed since you arranged your mortgage – check the terms to see if you are still eligible. You may not always be able to transfer the mortgage rate you currently have to a new property.
Why might you port a mortgage?
Everyone has their own preferences when it comes to moving mortgages, but there are a few factors that could mean you want to port your deal, instead of finding a new one.
- Keep your interest rate – Porting your mortgage could mean your new loan will have the same interest rate as your current deal.
- No early repayment charges – Porting may mean you avoid paying early exit fees, which you may be charged with if you decide to leave for a new deal. Check your mortgage offer or contact your lender to see if this is the case.
Things to consider when porting a mortgage
As with any mortgage, it’s important to consider all your options before agreeing to port your mortgage. Some things to consider include:
- Changes in circumstances – Buying a more expensive or cheaper home will impact what deal is best for you, as will any changes to your income and regular outgoings.
- Current interest rates – Make sure the interest rate you’re currently on is still the best deal for you.
- Additional fees – These could include admin charges or early repayment charges. Check these are affordable and whether they’re likely to impact your decision.
- What can you borrow? – Your new house may cost more than your current property, so you may need to borrow the difference on another mortgage deal. Some providers may not allow additional borrowing.
What if you can’t port your mortgage?
If your application to port your mortgage is rejected, there are still some options you can consider.
Stay where you are
If you can’t port your mortgage and are going to be hit with high fees if you move now, you may be better off staying put. The less time you have left on your current deal, the lower your exit fees and additional charges should be. In these cases, you can wait until you’re nearer the end of your mortgage deal and see if the circumstances change.
Calculators & tools
We have a range of mortgage calculators to help you:
- Find out how much you could borrow from Lloyds Bank
- See how much you could save if you make overpayments on your mortgage
- Get an idea how a change to the Bank of England Base Rate could effect your monthly payments
Important legal information
Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278.
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