Porting Definition: The process of transferring a mortgage from one property to another.
Getting started..
When you’re thinking about moving home, the biggest question is often what to do with your existing mortgage? And there’s a lot to consider;
- What are the penalties for leaving my current mortgage?
- Will other mortgages allow me to borrow more money?
- Does moving my mortgage mean getting the best deal?
But you don’t have to feel like your alone. Most banks and building societies will allow a mortgage adviser to help move their mortgage.
Why speak to us...
- Estate agents like to know you have spoken to a professional, rather than just filled in a few forms online.
- Meeting typically last between 30 to 60 minutes to ensure you are well prepared to start the process of moving home.
- Get an indication of how much you can borrow from a comprehensive range of mortgages from across the market.
- Get to know me and decide whether I am the right person to help with your new mortgage and protection portfolio.
- Without affecting your credit score.
Deciding to sell your home...
Deciding to sell up and move home is a big decision in anyone’s life. And knowing what to do with your existing mortgage can be a headache.
When you are thinking about moving, there are two people you will need to speak too.
- Estate Agent
- Mortgage Broker
Estate Agent
An Estate Agent will give you an idea of how much you could sell your home for. And useful tips on how to get your home ready to go on the market.
Mortgage Broker
A Mortgage Broker will calculate the budget available for the new property. And when the time is right, source you the most suitable deal. They will also help deal with your existing mortgage and work out how best to proceed.
What to do with your existing mortgage...
If you are selling your home, there are normally only two options when it comes to dealing with your existing mortgage.
- Repay your mortgage in full and start again.
- Port your mortgage to the new home.
Starting Over
If you just want to repay your existing mortgage and start again, you will need to consider any early repayment charges associated with your current mortgage. These penalties could be as much as 5% of the outstanding mortgage balance. And making the wrong decision could cost you a lot of money. Potentially unnecessarily.
Porting your Mortgage
Moving your mortgage to your new home could save you having to pay large mortgage exit fees. But if you need to borrow more money, you will be limited to the deals available with your existing bank or building society. And if you are borrowing less, you will likely still have penalties to pay.
Porting explained
Current Home
- £200,000 value
- £150,000 mortgage
- £7500 exit fee
New Home
- £300,000 value
- Ported £150,000 mortgage
- New £100,000 mortgage deal
- £7,500 penalty waived
Porting works by moving the product secured against an amount of borrowing. It’s important to remember that it’s the product that is being moved and not the money. When you sell your current home, the current mortgage is repaid in full and a new mortgage is secured against the new property.
That new home will have two mortgage parts. One part that has been ported across from the old property. And a new part from the same lender but on a deal available at the time of applying. Providing this is all done on the same day, the early repayment charges are waived.
The benefits of porting are;
- Same Mortgage Provider
- Early Repayment Charge Saved
But the potential negatives are;
- Two mortgage products
- Two different product expiry dates
The new mortgage deal in the example above will likely have to have been either a two, three or five year fixed rate. If your current deal had four years remaining on it then your product end dates won’t match up. Potentially causing you issues in a few years time.
Russell Maggs
Mortgage & Protection Adviser
Why trust Maggs Financial Services to port your mortgage?
“I started as a mortgage broker in Bath in 2013 with one of the largest brokers in the country. I had grown up in the South West and take great pride in helping local clients with their mortgage and protection portfolio.
“Starting my own firm has allowed me to focus a lot more time on my clients. And being able to market myself independently has allowed my personality to shine through alongside the quality of my work.
“Whether you’re buying your first home, forever home or simply need to re-mortgage; I hope you can find enough useful information within this website to allow you to make the next steps and get in touch.”