Family planning a move and mortgage porting to a new home

Mortgage porting in the UK

Mortgage porting in the UK: how does it work?

Mortgage porting may allow you to move your current mortgage product to a new property, but it is not automatic lender approval. The lender will reassess your affordability, credit history, new property and mortgage amount.

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TL;DR

Mortgage porting - key points

Mortgage porting means trying to move your current mortgage product to a new property. It can be useful if you have a favourable interest rate or want to avoid an early repayment charge.

Porting is not automatic. The lender will reassess your income, commitments, credit history, age, new property, loan-to-value and whether you still meet its current criteria.

If you are buying a more expensive property and need a larger mortgage, the additional part may be offered on a different product and rate. That is why porting should be compared with remortgage or an offer from another lender.

What is mortgage porting?

Mortgage porting is the process where a client tries to move their current mortgage product to a new property. In practice, it does not mean an automatic mortgage transfer - the lender must accept the new application, new property and the client's current financial situation.

Porting can help if your current product has a favourable rate or early repayment would trigger an ERC. It will not always be the best option, so the cost of porting, new borrowing, fees and alternative deals should be compared.

If you want to return to the wider finance category, see also the mortgages in the UK page.

When can mortgage porting make sense?

You have a favourable interest rate

If your current product has a lower rate than new deals on the market, porting may help preserve some favourable terms.

You want to avoid ERC

Porting may be considered if repaying your current product early would trigger a high early repayment charge.

You are buying a similar or more expensive property

If you need a similar loan amount, the process may be simpler. If you need to borrow more, the extra borrowing may be placed on a different product.

Your current lender still accepts you

The lender will reassess income, commitments, credit history and the new property. If your situation has changed, porting may not be available.

With every option, the lender will reassess affordability, living costs, current commitments and the required loan-to-value.

When may mortgage porting not be possible?

Reduced affordability

Lower income, new commitments, children or higher living costs can affect affordability.

Credit history issues

Missed payments, defaults, CCJs or new borrowing may mean your current lender does not accept the new application.

The property does not meet criteria

The lender may decline if the new property has unusual construction, leasehold issues, valuation concerns or other criteria problems.

You need a much larger amount

The additional borrowing may require a separate assessment and may be available on different terms from your current product.

Before applying, it is worth checking your credit history. If missed payments, defaults or CCJs have appeared, the page about poor credit history may also help.

Porting or remortgage - which should you choose?

Porting checks whether your current product can be moved to a new property. Remortgage means changing the mortgage to a new deal, often with another lender. The best option depends on the current rate, ERC, new property value, required mortgage amount and your current financial situation.

Frequently asked questions

Can I move my current mortgage to a new home?

Sometimes, yes, but it depends on the lender, product, new property and your current financial situation. The lender will reassess affordability, credit history and requirements for the new purchase.

Can mortgage porting help avoid ERC?

It may help avoid or reduce an early repayment charge, but not always. It depends on the terms of your current product and whether the lender accepts porting to the new property.

Is porting automatic?

No. Even if the product is portable, the lender must accept the new application, new property, income, commitments and loan-to-value.

What if I need a larger mortgage when moving home?

The extra amount may be offered as a separate part of the mortgage, often on a different product and interest rate. The lender will assess whether you can afford the full borrowing.

Can I port a mortgage with poor credit history?

It depends on the type of issues, dates of entries and your current lender's criteria. Issues such as missed payments, defaults or CCJs may make porting harder, even if the original product was accepted before.

Is it better to port or remortgage?

It depends on your current rate, ERC, required mortgage amount, new property value and available deals. It is worth comparing porting with remortgage before deciding.

Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.

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