Porting & Early Repayment Charges

Porting

What Is Porting a Mortgage?

When you move home while still in a fixed or tracker rate period, porting allows you to take your existing mortgage deal with you to the new property rather than paying an Early Repayment Charge to exit it. It is one of the most important decisions people face when moving home. This guide explains how porting works, when it makes sense, and what to do if your lender declines the application.

The porting process

How Porting Your Mortgage Works

Porting transfers your existing mortgage rate and remaining deal terms to your new property. Even though you are staying with the same lender, they will reassess your affordability and credit profile from scratch before approving the port. A change in income, new credit commitments, or a change in employment since you first took out the mortgage could affect the outcome. If the new property costs more than your outstanding balance, you will need to borrow the additional amount at a new rate alongside the ported portion, giving you two mortgage parts.

Advantages

+ Your existing rate transfers to the new property + No Early Repayment Charge on the ported balance + Avoids the disruption of a full remortgage + Can combine with a top-up if you need to borrow more

Considerations

- Lender reassesses you using today's criteria, not the original criteria - The new property must meet the lender's acceptable standards - Not all lenders allow porting on every product - Port can still be declined even if you have been a reliable customer

Early repayment charges

Understanding Early Repayment Charges

An Early Repayment Charge is the fee your lender applies when you exit your mortgage product before the initial deal period ends. ERCs are usually a percentage of your outstanding balance, typically between one and five per cent, and are highest in the early years of the deal. On a £300,000 mortgage, a three per cent ERC would cost £9,000. Porting avoids this charge entirely by keeping your existing deal in place, which is why checking your ERC figure is always the first step when planning a move.

Advantages

+ Porting avoids the ERC entirely + ERC percentage reduces the longer you stay in the deal + Your ERC figure is clearly stated in your mortgage offer document + Some products have no ERC, making switching freely available

Considerations

- ERCs are highest at the start of your deal period - Typical range is one to five per cent of the outstanding balance - Can amount to thousands of pounds on a large mortgage - Sometimes paying the ERC to switch to a better deal is still cheaper overall

Topping up your mortgage

Porting and Borrowing More

When you upsize to a more expensive property, your existing mortgage balance will not cover the full purchase price. Most lenders allow you to borrow the additional amount as a separate top-up mortgage part sitting alongside your ported balance at a new interest rate. This creates two mortgage parts with potentially different rates and end dates. Your broker will compare the combined cost of porting plus a top-up against taking a full remortgage with a new lender to find the most cost-effective outcome.

Advantages

+ Retain your existing rate on the ported balance + Borrow additional funds at current market rates + One lender and a streamlined application process + Avoids the ERC on the original mortgage amount

Considerations

- Two mortgage parts can mean two different end dates - Top-up rate may not be as competitive as the wider market - Combined cost must be compared against a full remortgage - Future remortgaging is more complex with two parts

Our adviser's view: For most people moving home mid-deal, porting is the first option we explore. The Early Repayment Charge you would pay to exit early can be substantial, and porting sidesteps it entirely. But porting is not always approved, and it is not always the cheapest route, particularly if your existing rate is no longer competitive compared to today's market. We run the numbers on every option before making a recommendation.

When porting fails

What If the Lender Declines My Port?

Lenders can decline a port even if you have been a reliable customer throughout your mortgage. The most common reasons are changes to your income or outgoings since the original application, a property that falls outside the lender's criteria, or tighter lending rules applied since you first borrowed. If the port is declined, there are still workable options available to you.

Pay the ERC and Remortgage If the port is declined or the combined cost of porting plus a top-up is not competitive, paying the Early Repayment Charge and remortgaging with a new lender may still save you money over the remaining deal period. Your broker will calculate the break-even point so you can make an informed decision.

Product Transfer If your existing deal is approaching its end date, a product transfer with your current lender on the new property is worth considering. Unlike porting, a product transfer does not always require a full affordability assessment and may be faster to complete.

Remortgage to a New Lender If your lender will not approve the port and the ERC is manageable, remortgaging to a new lender gives you access to the whole mortgage market. Our advisers search every lender to find the most competitive deal for your specific circumstances.

Our advisers will model all three scenarios — porting, product transfer and full remortgage — before making a recommendation. The right choice depends on your current rate, your ERC figure, how much you need to borrow and the value of the new property. We will always show you the full numbers so you can decide with confidence.

Porting Your Mortgage & Early Repayment Charges

What Is Porting a Mortgage?

How Porting Your Mortgage Works

Understanding Early Repayment Charges

Porting and Borrowing More

What If the Lender Declines My Port?

Useful Calculators

Related Guides

Porting Your Mortgage & Early Repayment Charges

What Is Porting a Mortgage?

How Porting Your Mortgage Works

Understanding Early Repayment Charges

Porting and Borrowing More

What If the Lender Declines My Port?

What does it mean to port a mortgage?

When is it better to port my mortgage rather than switch lender?

What are Early Repayment Charges and how much can they be?

Can I always port my mortgage when I move?

What happens if I need to borrow more than my existing balance when I port?

Useful Calculators

Related Guides

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