Page 47 - ESPC Magazine - June 2021

CAN I TRANSFER MY MORTGAGE TO allow you to align the term of your existing
ANOTHER PROPERTY? mortgage with your new one to keep things
Yes, if you have a mortgage product with consistent.
early repayment charges, it is usually possible
to transfer the mortgage on to a new IS PORTING YOUR MORTGAGE A GOOD
property. This is called porting and would IDEA?
be subject to your existing lender’s criteria, Porting a mortgage may allow you to keep
terms and conditions. your existing mortgage terms, avoid early
repayment penalties and sometimes there can
HOW DOES PORTING A MORTGAGE be a quicker assessment due to your existing
WORK? relationship with your mortgage lender.
Porting a mortgage essentially means that
you are transferring your mortgage to your However, porting a mortgage does limit you
new property, which can help you avoid to using products from your existing lender.
any early repayment charges. Porting is You may also not be able to consolidate
only typically used when you are tied into a all your borrowing under one mortgage
preferential rate mortgage, usually a fixed for a period of time – this might mean
rate product but some tracker mortgages more arrangement fees in the future to get
have lock-in periods also. preferential rates for both accounts until they
are aligned.
If you require additional funds for your new
property, you will need to negotiate with Essentially, while porting your mortgage
your current lender on the terms of this may be an option, it can sometimes be a
borrowing. This will generally involve taking difficult process and may not always make
on a top-up product for the balance required financial sense. As each lender has different
to run alongside your existing loan amount. policies with regards to porting, it is best to
get advice from an independent mortgage
This is normally done under a separate adviser to work out if it is the right option for
account but sometimes your lender will you. (continued on page 48)

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