Moving Home With an Existing Mortgage: What Happens to Your Current Deal?

You've found a property you'd love to move to – but there's one potential complication. You already have a mortgage.

So, what actually happens to your existing mortgage when you move house?

Depending on your mortgage and circumstances, you may have several options.

Can I take my existing mortgage with me?

You may have heard the term "porting".

A portable mortgage may allow you to transfer your existing mortgage product to a new property, subject to your lender's terms, affordability assessment and lending criteria.

However, having a portable mortgage doesn't mean you're automatically guaranteed a mortgage on the new property.

The lender will usually reassess your circumstances and will also need to be satisfied with the property you're buying.

What if I need to borrow more?

If you're moving to a more expensive property, you might need a larger mortgage.

Depending on the lender and your circumstances, you may be able to port the existing portion of your mortgage and apply for additional borrowing.

The additional amount may be on a different mortgage product with a different interest rate and deal period.

This can result in different parts of your mortgage having different end dates, which is worth considering when looking at your longer-term plans.

Could I switch to another lender instead?

Potentially.

Rather than porting, it may be possible to repay your current mortgage and arrange a new mortgage with another lender.

However, you need to consider whether your existing mortgage has an Early Repayment Charge and any other costs associated with changing lender.

The lowest headline interest rate doesn't necessarily mean the lowest overall cost once fees and charges are considered.

What if I'm moving to a cheaper property?

Moving to a less expensive home doesn't necessarily make the mortgage process automatic either.

If you're reducing the amount you're borrowing, there may be early repayment charges depending on the terms of your existing mortgage.

Your lender will also need to approve the new property and reassess the application.

Speak to a mortgage adviser before making your move

If you're thinking about moving, it's useful to understand your mortgage position before becoming committed to a purchase.

A mortgage adviser can review your existing deal, check the implications of porting it and compare this with other mortgage options available to you.

That means you'll have a clearer idea of what you can afford – and what will happen to your current mortgage – before you make your next move.