Porting your mortgage

What does porting a mortgage mean? 

Porting your mortgage means taking your existing mortgage deal with you when you move to a new home.  

Instead of switching to a new lender or a new mortgage product - you stay with your current lender, keeping the same interest rate and mortgage deal (if you're eligible). 
 

How does mortgage porting work? 

When you port your mortgage you're transferring the rate or deal - not the original loan itself. That means you still need to reapply for a mortgage when you move home.
 

Your lender will assess: 

• The loan-to-value (LTV) of your new property. 
• Any changes to their lending criteria. 
• Changes to your financial circumstances, including your income and outgoings.   

If your application is approved, you'll follow the same process as you would to apply for a new mortgage.
 

Is porting the right option? 

Borrowing more when porting

If you’re moving to a more expensive property, you may need to borrow extra on top of your existing mortgage. In this case, your mortgage will be split into two parts: 
 

Part 1: Your existing mortgage balance, which you port to your new home.  
 

Part 2: The extra money you borrow, which would be on a separate deal and rate.
 

Here's an example of borrowing more when you port:

Lisa and Jim's current home is worth £160,000, with a mortgage balance of £130,000. They have £30,000 in equity.

They want to move to a home worth £200,000. Using their £30,000 equity as a deposit, they need to borrow £170,000.

They decide to port their existing mortgage (£130,000) and take out an additional £40,000 on a new deal. Their new total mortgage will be £170,000.
 

Keep in mind: additional borrowing may be more expensive, especially if your new loan-to-value (LTV) is higher.  

Borrowing less when porting

You can still port your mortgage if you're moving to a cheaper home, and borrowing less. However, your new LTV must be the same or lower than your current mortgage.  

Here's an example of borrowing less when you port: 

Dan and Adam own a home worth £200,000, and owe £150,000 on their mortgage - giving them £50,000 in equity (75% LTV). 

They want to buy a new home for £160,000. They use £40,000 of their equity as a deposit and borrow £120,000, releasing £10,000 for home improvements.

This approach lets them reduce their mortgage while keeping some cash aside - as long as their LTV stays within acceptable limits.  

Need help porting your mortgage?

Our team is here to help you understand your options. If you're thinking of moving and want to know if you can port your Principality mortgage, get in touch with our mortgage team.