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“Private Finance provided excellent service securing a remortgage for my property even though it was not a straightforward case. They always kept me updated and was on hand to help and deal with any issues arising. Would definitely recommend Private Finance for their services, offering guidance and support throughout the whole process.”
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With over two decades of experience arranging mortgages of every kind, our consultants have strong expertise in arranging mortgages when moving home, whether you are looking to port your mortgage, take out a new one or borrow more.
Here are some of the reasons that our clients trust us with their mortgage needs:
We’re an independent, whole-of-market broker using over 175 different lenders, with strong ties to high-street lenders, private banks and specialist providers. That means we’re optimally positioned to find the right mortgage solution for you
From mortgage broking to wider financial planning, our consultants have a strong, holistic understanding of the financial markets. They’ll use this expertise to understand the nuances of your situation – and tailor a solution that works for you.
With an average rating of 4.97/5 from more than 1,800 reviews, we offer a peerless client experience. We leave no stone unturned to provide our clients with the finest advice possible, insulating you from the rigmarole of the mortgage process, so that you can stay focussed on your day-to-day.
To “port” a mortgage refers to the process of transferring an existing mortgage from one property to another. This option is commonly available to homeowners who are moving to a new home but wish to keep their existing mortgage terms, such as the interest rate.
Porting a mortgage is subject to certain conditions and requirements set by the mortgage lender. You will still need to go through the application process and satisfy the lender’s eligibility criteria and affordability assessment. Porting the mortgage will be faster to arrange through a mortgage broker compared to going direct to your lender (which can take a few weeks). This will also provide with whole of market advice to ensure you are accessing the best deal.
Not every mortgage is portable, so it is a good idea to check your mortgage details as a first step.
Porting a mortgage can be beneficial if you have a good mortgage deal that you want to maintain, especially if it comes with favourable interest rates or specific terms that are no longer available in the current market.
You may be able to change some of the mortgage specifics, such as the repayment type or term. Additionally, you may not need to repay an early repayment charge.
While porting is an effective way save on early repayment charges (ERCs) for the right borrower, it is not necessarily the right option in the long term for everyone. It is quite easy to become trapped with the same lender who may not be the most competitive in the future, or maybe you’ll have to pay an ERC or SVR at some stage, especially if your lender does not offer top ups on a tracker rate product.
Additionally, you will have to pass affordability and eligibility checks, as well as pay stamp duty charges, valuation and legals fees.
If you are unable to port your mortgage when moving to a new house, you will not be able to transfer your existing mortgage to the new property and you may need to take out a new mortgage.
In this case, you may choose to repay your current mortgage early, possibly by selling your current home and using the proceeds to pay off the existing loan.
When taking out a new mortgage, you will need to either apply for a new mortgage with your existing lender or from a different lender altogether.
If you are buying a more expensive property and therefore need to borrow more, you have two options:
In either case, you will need to prove that you can afford the bigger loan.
Port your existing mortgage and borrow more with an additional loan
If you are purchasing a more expensive property, you may want to borrow an additional amount on your ported mortgage to effectively top up your loan amount. This may involve taking out a second mortgage product.
However, it is important to note that having two mortgages runs the risk of the mortgage products not maturing at the same time. Some borrowers may find they become locked into a less competitive deal with their existing lender, or switch to the lender’s SVR (standard variable rate) for a period which can be at a higher interest rate.
It can be a good idea therefore to consider a lender that offers a tracker rate product with no ERCs. Speaking with an expert can help you consider all your options to make a more informed decision.
If you are buying a more expensive property and are unable to port the mortgage, you may need to take out a new mortgage with a higher loan amount.
You may choose to repay your current mortgage early, possibly by selling your current home and using the proceeds to pay off the existing loan.
If you are looking to downsize and purchase a less expensive property, you may require a smaller mortgage. This can lead to lower monthly mortgage repayments, assuming other factors remain constant.
If you have built up equity in your current home, downsizing can provide an opportunity to access this. You could use the proceeds from selling your larger property to pay off a portion of your existing mortgage or to make a larger down payment on the new property. This may result in a lower loan-to-value ratio and potentially more favourable mortgage terms.
If you are thinking of paying off your current mortgage using the proceeds from your house sale to then take out a new mortgage, it is important to consider the implications on the loan-to-value. Borrowing the same loan amount at a lower property price may increase the LTV. In this case, lenders may prefer you to pay off part of your existing mortgage to maintain the LTV.
Keep in mind that when downsizing and taking out a new mortgage, lenders will reassess your mortgage eligibility and various factors such as your income and any changes to your circumstances.
It is possible to port your mortgage with a smaller loan, however, there may be limitations or additional costs such as ERCs to consider.
If you would like to pay off your current mortgage before the end of the fixed rate period, it’s important to understand there may be ERCs (early redemption charges) to pay. For example, if your loan is £200,000 and the redemption charge is 2%, you will need to pay a £2000 redemption charge. There may be other costs you need to consider too
Alternatively, you can port your mortgage if your current mortgage allows for this.
When moving home and opting for a new mortgage instead of porting your existing one, it’s important to consider additional fees that are typically associated with the process. These fees should be taken into account when calculating the overall cost of acquiring the new mortgage.
This may include:
An ERC is a fee imposed by a lender if you pay back your mortgage before the end of the fixed term or specified period. It’s important to carefully review your mortgage agreement to understand if there are any ERC provisions, including the duration of the charge and the applicable fees.
Some lenders charge a fee for arranging the mortgage. This fee can vary significantly and may be payable upfront or added to the mortgage balance.
Depending on the location and purchase price of the property, you may be required to pay stamp duty. You can use our stamp duty calculator to see how much this will cost.
While there are fee-free mortgage brokers out there, it is common for mortgage brokers to charge a fee for their service to find you the most suitable and advantageous mortgage deal.
The lender will assess the value of your new property to ensure it aligns with the amount you intend to borrow. Additionally, you have the option to obtain a property survey at an extra cost, which can help identify any necessary repairs or maintenance.
You’ll need to hire a solicitor or conveyancer to handle the legal aspects of the property purchase and mortgage. Their fees can include searches, land registry fees, and other administrative costs.
your lender may charge a product fee if you are porting your mortgage and borrowing a larger amount.
this is only charged by specialist lenders and not high street lenders.
While not directly related to the mortgage, it’s important to budget for the costs of moving your belongings from your current home to the new property. This can include hiring professional movers, packing supplies, and other related expenses.