Porting a Mortgage | Take your mortgage with you | NatWest (2024)

FAQs

Is porting your mortgage a good idea? ›

Porting may work for you if you're planning to downsize or move to a less expensive area, and you don't intend to ask for any additional funds.

Your mortgage rates, term, amortization, conditions and remaining balance will stay the same after the transferral process. When you port a mortgage, you keep your existing loan with the same lender. Because porting doesn't require you to break your mortgage contract, you won't incur prepayment penalties.

Porting your mortgage means taking your existing mortgage—along with its current rate and terms—from your current home to your new home. You can port your mortgage if you're purchasing a new property at the same time you're selling your existing one.

These days, the majority of mortgages – whether they are fixed or variable – are portable. However, some smaller or more specialist lenders may not offer portable deals. It's also less common among buy-to-let mortgages. Always check the specifics of your mortgage agreement to see if porting is an option for you.

Limited Flexibility: Porting a mortgage requires you to sell your current home and purchase a new one simultaneously. This lack of flexibility can be a disadvantage if you cannot find a suitable new property within the specified time frame, usually between 30 and 120 days, depending on the lender.

There are no 'porting fees' as such. But you will usually need to pay a valuation fee so that your lender can check that the new property is worth what you plan to pay for it. If you are borrowing an additional amount on top of your original mortgage, you might also have to pay an arrangement fee.

Porting a mortgage can offer several benefits to homeowners: Homeowners can keep their current interest rate by porting. This is especially beneficial if the interest rates have increased since the original mortgage was taken out. Most lenders charge a penalty when a mortgage term is broken.

If you're transferring your mortgage to a property of the same value or a cheaper one, the equity you've built up in your home should suffice as the deposit on your new one.

In most circ*mstances, a mortgage can't be transferred from one borrower to another. That's because most lenders and loan types don't allow another borrower to take over payment of an existing mortgage.

Yes, you may be able to transfer a mortgage to another property if your lender allows it.

Can I port my mortgage to a lower amount? ›

Most lenders will still let you port without a penalty, but you will have to make a hefty pre-payment to help pay off your old mortgage. Some lenders may have restrictions on how cheaper your new home can be compared to your present one.

FHA loans are assumable, which means they can be transferred to your buyer. Price sensitive buyers could really benefit from a low fixed rate loan, making your home more marketable.

The amount of time you have to complete the port, which is usually between 30 and 120 days, also varies among lenders. Some will allow just 30 days, which may be tight in some circ*mstances.

Depending on your financial circ*mstances you'll usually have the option of switching to a new mortgage deal with your existing lender, known as a product transfer, or switching to a new deal with another lender.

Can You Change Your Mortgage Lender? Yes, you can change your mortgage lender. Borrowers are safeguarded under consumer protection laws that allow them to walk away from any loan before it is issued. However, once the loan is issued, they will not simply transfer the mortgage to a different lender.

Most times, people making a mortgage switch are doing so to take advantage of a lower interest rate elsewhere. However, the penalties are probably more than the interest you'd save on making a switch before your maturity date. If you can, it's better to wait until your mortgage is up for renewal.

You could save money by switching, but you may have to pay a fee for leaving the fixed-rate early. If you are coming towards the end of your fixed term, you need to decide if you should switch to a variable or you may prefer to fix again.