Mortgage Options When Moving
Moving home presents mortgage decisions beyond just finding a new property. You may be able to port your existing mortgage, taking your current deal to your new home. Alternatively, you might pay off your current mortgage and take out a completely new one. Each approach has implications for costs, rates, and flexibility.
The best option depends on your current mortgage terms, the size of mortgage you need for your new home, and what deals are available in the current market. Calculating the true cost of each approach helps you make an informed decision.
Porting Your Existing Mortgage
Porting allows you to transfer your current rate to a new property, potentially avoiding early repayment charges. However, porting isn't guaranteed - you must reapply and meet your lender's current criteria, and your new property must be acceptable to them. The process is essentially a new application using your existing rate.
If you're borrowing more than your current mortgage balance, you may be able to port and borrow additional funds on a new rate alongside. This creates a split mortgage with potentially different rates and terms on each part.
When to Get a New Mortgage
Sometimes starting fresh with a new mortgage makes more financial sense. If your current rate is no longer competitive, or if early repayment charges are low or nil, a new deal could save you money overall. Calculate whether any exit fees are offset by savings from better rates.
A new mortgage means a fresh application, but this can be advantageous if your circumstances have improved - increased income, better credit, or more equity from house price growth could unlock better rates than before.
Expert Home Mover Advice
Our brokers can calculate the true cost of porting versus switching for your specific situation. We'll consider your current rate, any early repayment charges, new deal options, and all associated fees to recommend the most cost-effective approach. Complete our form for personalised advice on your move.