About The Author
Damian is an experienced mortgage broker, founder of NeedingAdvice.co.uk Ltd and company director. With over a decade working as a mortgage broker he has a strong understanding of hard to place mortgage cases. With hundreds of 5 star client reviews. hundreds of repeat clients his work speaks for himself.
He started NeedingAdvice.co.uk as a one man band with the philosophy of putting clients needs ahead of his own. This ethos of offering excellent customer service has helped the business grow over the years. He gets satisfaction on getting cases pushed through to offer stage where other mortgage broker and companies have failed.
Throughout his time as an adviser he has carved out a niche area of advice helping clients with their business protection requirements too. Having helped hundreds of client with Relevant Life Policies, Shareholder Protection Insurance, Keyperson Policies and other important protection requirements of large to small businesses.
At home he is a family man and likes to spend his time with his four children and wife Lisa. He enjoys going on holidays spending time with friends and going for walks.
Introduction: What is Mortgage Porting?
Mortgage Porting in the UK is the ability to transfer your existing mortgage to a new property without having to pay early repayment charges. This can be a useful option if you are moving house but want to keep the same mortgage terms and conditions.
According to a 2022 survey by Moneyfacts, only 27% of UK mortgages are portable. This is relatively low compared to other countries, such as Canada and Australia, where mortgage porting is much more common.
There are a number of reasons why mortgage porting is not more widely used in the UK. One reason is that some lenders charge a fee for allowing borrowers to port their mortgages. Another reason is that not all mortgages are portable. For example, mortgages with special features, such as cashbackA sum of money paid by the lender to the borrower as an ince... offers or fixed interest rates, may not be portable.
Despite the relatively low number of portable mortgages, there is some evidence that mortgage porting is becoming more popular in the UK. For example, the number of portable mortgages lenders offer has increased in recent years.
Here are some statistics on mortgage porting in the UK:
- Only 27% of UK mortgages are portable.
- The average fee for porting a mortgage is £500.
- The number of portable mortgages lenders offer has increased by 10% in the past five years.
Post Topics
How Does Porting Your Mortgage Work?
What Are the Benefits of Porting Your Mortgage?
What Disadvantages Are There to Porting a Mortgage?
How Can I Prepare for Porting My Mortgage?
What Other Factors Can Affect My Ability to Port a Mortgage?
I Can Port, But Other Deals Look Cheaper – What Should I Do?
How We Work
1: We contact you and take down your details, income outgoings, name, address etc.
2: We will research the whole market and email you a detailed quote as well as a list of documents to proceed.
3: You upload the documents and information needed via our channel our online portal.
How Does Porting Your Mortgage Work?
Porting your mortgage involves a series of steps that begin with contacting your current lender to discuss the possibility.
The lender will assess your eligibility based on various factors, like your credit score, the value of the new property, and your repayment history. Once you get the green light, you’ll need to provide necessary documentation, such as proof of income and property valuation reports. After the lender approves the port, you can proceed with the legal and administrative aspects of transferring the mortgage to your new property.
What Are the Benefits of Porting Your Mortgage?
Porting your mortgage can make moving house smoother and potentially more cost-effective. One of the main benefits is that you can avoid early repayment charges, which can be quite high. You’ll also save time and effort, as you won’t need to apply for a new mortgage. And, if your current interest rate is lower than the current market rates, you may be able to keep it.
- Avoid early repayment charges (ERCs). ERCs are fees that lenders charge borrowers who repay their mortgage early. These fees can be quite hefty, especially if you are on a fixed-rate mortgage. Porting your mortgage allows you to avoid paying ERCs altogether.
- Save time and effort. Applying for a new mortgage can be a time-consuming and stressful process. Porting your mortgage allows you to skip this process altogether, as you will be able to keep your existing mortgage terms and conditions.
- Keep your existing interest rate. If you are on a low-interest mortgage, porting your mortgage allows you to keep your current interest rate. This can be a huge advantage, especially if interest rates have gone up since you took out your mortgage.
In addition to these benefits, porting your mortgage may also be a good option if you are planning to downsize or move to a less expensive area. This is because you may be able to keep the same loan amount, even if the new property is worth less than your current home.
What Disadvantages Are There to Porting a Mortgage?
While porting your mortgage can offer several advantages, it’s important to be aware of the potential downsides. For example, not all mortgage products are portable, which can limit your options. Additionally, you may have to pay administrative fees or valuation costs when transferring your mortgage. And, there’s the risk that your application to port might be declined, depending on your current financial situation or the value of the new property.
Here are some of the key downsides of porting your mortgage:
- Not all mortgage products are portable
- You may have to pay administrative fees or valuation costs
- Your application to port might be declined
How Can I Prepare for Porting My Mortgage?
Preparing for porting your mortgage is crucial for a smooth transition. Start by reviewing your current mortgage agreement to ensure it includes a portability feature. Next, consult your lender to understand the specific requirements and eligibility criteria. It’s also advisable to get your finances in order, including checking your credit score and gathering necessary documentation like payslips and bank statementsA record of a borrower's financial transactions often requir.... Lastly, consider getting your new property valued to ensure it meets your lender’s criteria.
What Other Factors Can Affect My Ability to Port a Mortgage?
Several factors can affect your ability to port a mortgage beyond the essential eligibility criteria set by your lender. Your credit score, for instance, can play a significant role, as a lower score may result in a declined application. Market conditions can also impact your ability to port significantly if property values fluctuate. Additionally, your current financial situation, including your debt-to-income ratio, can influence the lender’s decision.
I Can Port, But Other Deals Look Cheaper – What Should I Do?
If you’re eligible to port your mortgage but have found other deals that appear to be more cost-effective, you’re faced with a decision. While porting can offer the convenience of sticking with your current lender and avoiding early repayment charges, a cheaper deal could save you money in the long run.
To make an informed decision, you’ll need to weigh the pros and cons of each option, taking into account factors like interest rates, fees, and your financial situation. We would suggest you contact a mortgage broker to help you with this situation.
I Can’t Port – Can I Switch to a New Mortgage?
If you find that you’re unable to port your mortgage, don’t worry; you still have options. One alternative is to switch to a new mortgage deal, either with your current lender or a different one. While this may incur early repayment charges and other fees, it could offer you a better interest rate or more favourable terms. Another option is to stick with your current mortgage and move it to the new property, although this could be more complicated and costly.
Next Steps
Once you’ve made your decision, whether to port your mortgage or opt for a different route, there are some final steps to take. If you’ve chosen to port, you’ll need to complete the paperwork and meet any additional requirements your lender sets. If you’re switching to a new mortgage, you’ll need to go through the application process, which may include a property valuation and credit checks.
Regardless of your choice, it’s crucial to keep in close contact with your lender and any legal advisers to ensure the process goes as smoothly as possible. At needingadvice.co.uk ltd, we can help you with the process. Feel free to reach out to us.
How We Work
1: We contact you and take down your details, income outgoings, name, address etc.
2: We will research the whole market and email you a detailed quote as well as a list of documents to proceed.
3: You upload the documents and information needed via our channel our online portal.
Frequently Asked Questions on Mortgage Porting in the UK
What are the benefits of porting my current mortgage deal?
Porting your mortgage can save you from early repayment penalties, keep your current interest rate if it’s favourable, and save you the time and effort of a new mortgage application. It may also be beneficial if you’re moving to a cheaper property.
What costs might I incur when porting my mortgage?
While porting can save you from early repayment fees, you may still have to pay an arrangement fee and a valuation fee. The average fee for porting a mortgage in the UK is £500.
What factors can affect my eligibility for mortgage porting?
Your credit rating, the value of the new property, and your financial situation, including your household income and debt-to-income ratio, can all influence your eligibility. Your current lender will conduct an affordability check based on these and other lending criteria.
What should I do if porting isn’t the most competitive deal available?
If you find a more competitive mortgage rate elsewhere, you’ll need to weigh the pros and cons of sticking with your current mortgage provider or switching. Consider consulting a mortgage broker for expert advice on whether the potential savings outweigh the costs, such as any exit fees.
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