I’m moving home, can my mortgage come with me?

Paul Demarco, Independent Mortgage Adviser at ESPC Mortgages, discusses how to take your mortgage with you when moving home.

If you are moving home and have a mortgage product with early repayment charges, it is usually possible to transfer the mortgage onto a new property. This is called porting and means your mortgage would continue to run for the remainder of the initial chargeable period, as it would have if you hadn’t moved.

How does porting a mortgage work?

If you don’t port your mortgage, you could pay the early repayment charge and start a new mortgage elsewhere, but porting will allow you to keep your existing mortgage terms, avoiding early repayment penalties.

If you require additional funds for your new property, you will need to negotiate with your current lender on the terms of this borrowing. This will generally involve taking on a top-up product for the balance required to run alongside your existing loan amount.

Are there any downsides?

The downside to porting a mortgage is that it limits you to using products from your existing lender. You may also not be able to consolidate all your borrowing under one mortgage for a period of time – this might mean more arrangement fees in the future to get preferential rates for both accounts until they are aligned.

While porting a mortgage can be a good idea for some homeowners, it can sometimes be a difficult process, but an ESPC mortgage adviser will be able to work out if it’s the best option for you

ESPC Mortgages 

While the near-term economic outlook is changing, evidence suggests that buying a home remains a sound medium-term investment and the team here at ESPC Mortgages are well placed to keep you up to date on the latest developments. 

ESPC magazine

This article will appear in the June 2023 issue of the ESPC magazine. Find out more about the ESPC magazine and read the latest issue online. 

The initial consultation with an ESPC Mortgages adviser is free and without obligation. Thereafter, ESPC Mortgages charges for mortgage advice are usually £395 (£345 for first-time buyers). YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOANS SECURED AGAINST IT.

The information contained within this website is subject to the UK regulatory regime and therefore restricted to consumers based in the UK.

The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services businesses aren’t able to resolve themselves. To contact the Financial Ombudsman Service, please visit www.financial-ombudsman.org.uk.

ESPC (UK) Ltd is an Appointed Representative of Lyncombe Consultants Ltd which is authorised and regulated by the Financial Conduct Authority.