Mortgage portability refers to moving your current mortgage deal with you when you move to a new property. The process means you can transfer your existing mortgage deal, including the interest rate, terms and remaining balance.
It's important to know that you still have to re-qualify for the mortgage in order to be able to move it. This depends on whether your financial circumstances have changed for example, do you have a new job and have you kept up with timely mortgage payments? You should also note that if the new property has a higher value, you need to apply to borrow more money. This can determine whether mortgage portability is beneficial for you, because it depends on the new rate set by the lender.
While many mortgages are portable, it's not always guaranteed. Your lender will need to assess the new property and your financial situation before approving the transfer.
In this blog, we will look at the many reasons why mortgage portability may be a good option for you.
The benefits of mortgage portability
Mortgage portability means you avoid incurring penalties for moving, without having fulfilled the terms of your mortgage. For example, when you repay a mortgage deal early, you could face a repayment charge. However, when you move the mortgage to a new property via the mortgage portability process, you avoid these extra costs.
If you were happy with your mortgage and the rates you had secured, mortgage portability means that you can transfer these to your next home and you won't have to look for a new
deal.
You also don't have to secure the entire mortgage again. You may need to secure extra funds if the value of the new property is higher however, you do not need to start entirely from scratch. This takes some of the complexity out of moving house.
