Sellers
27/05/2026
If you’ve never sold and bought a property at the same time before, you might not have considered what happens to your mortgage when you move. Most people assume that you will always pay off your mortgage from the sale of your property and take out a completely brand-new mortgage, but this often isn’t the case, especially when you already have a favourable mortgage rate.
So what are your options?
When you are selling your home and buying another, you generally have three options available when it comes to your mortgage.
- Port your existing mortgage
- Redeem your mortgage and start fresh
- Port part of your mortgage, plus additional borrowing
Depending on your current mortgage rate, your terms and the price of the property you are looking to buy, any of these three options could be best for your individual situation. To decide which one is best for you, we’d recommend speaking to a qualified mortgage advisor, but if you want to understand each option further, keep reading.
What is porting?
Instead of taking out a new mortgage for the entire value of your new property, what can happen is something called porting. This means that the unpaid part of your mortgage is carried over to your new property with the same terms and interest rate.
Behind the scenes, your mortgage will be paid off and a new one issued in its place, because it’s the deal that’s ported (interest rate and terms), rather than the mortgage itself.
This is important to know because the process isn’t instant. When looking to port your mortgage, your lender will reassess your income, outgoings, credit history and the property you’re buying, much as they would for a first-time applicant. A good track record helps, but it isn’t a guarantee of approval.
How does porting work?
When it comes to porting your mortgage, the price of the next property you are buying is important.
If you’re moving to a more expensive home, you’ll usually need to borrow additional funds on top of the mortgage you are porting. Say you have £150,000 left on your mortgage and need £220,000 for the new property. Your lender may let you port the £150,000 at your existing rate, with the remaining £70,000 arranged as a mortgage, borrowing at whatever rate is currently on offer. You will end up with two parts to your mortgage running alongside each other, each with its own rate and terms.
When you’re downsizing or moving to a less expensive property, you may need to reduce your mortgage balance. Most lenders will let you port a smaller amount, but your loan-to-value on the new property usually needs to stay the same or lower than it was before. Depending on your lender’s terms, repaying part of the balance to bring it down to size can trigger an early repayment charge on that portion, even though you’re technically still porting the rest, so it’s important to check the terms when porting your mortgage if you are looking to buy somewhere cheaper than your current home.
What are the benefits of porting your mortgage?
The key reason people choose to port their mortgage instead of redeeming it and starting fresh is that by porting your mortgage you can avoid the early repayment charge that lenders often charge for ending a discounted deal early. These charges are typically a percentage of your outstanding balance, commonly somewhere between 1% and 5%, and can run into thousands of pounds, so keeping the deal intact rather than paying it off can be a genuine saving.
Other things to know
If you choose to port your mortgage when you move, you have to stay with the same lender so that you can keep your current deal. This means that if you are buying a home with a higher value, you need to be aware that the new part of your mortgage will be on whichever product the lender has on offer right now. You can’t shop around for a better deal.
If your application is declined, you’d need to either negotiate a new deal with your current lender or arrange a mortgage elsewhere, and you may become liable for the ERC you were hoping to avoid. It’s worth having a backup plan in place before you’re too far into your move.
Thinking about your next move?
For guidance specific to your mortgage and financial circumstances, we’d always recommend speaking to a qualified mortgage adviser or broker, who can look at your individual situation and the deals currently available to you.
Whatever you decide about your mortgage, the team at Robert Watts is here to help with the property side of things, from valuing your current home to helping you find your next property in West Yorkshire.
This article is intended as general information and does not constitute financial advice.
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