No, not all mortgages are portable, but most fixed-rate and tracker home loans allow you to transfer the debt to a new property subject to passing current affordability checks.
Moving house is stressful enough without worrying about losing a great interest rate. If you have a favorable deal, keeping it seems like a no-brainer. This process, known as “porting,” lets you transfer your current mortgage product to a new home. But is this option available to everyone?
Many homeowners assume their loan is attached to them, not the property. In reality, the loan is secured against the house. When you move, you technically repay the old debt and start a new one on the same terms. Because this involves a new application, approval is never guaranteed. Understanding the rules early prevents expensive surprises later.
How Mortgage Portability Works For Homeowners
Porting is not a simple administrative switch. You are essentially reapplying for your own loan. The lender must assess the new property and your current finances. If your income has dropped or you have taken on new debts, the bank might decline the request even if you paid on time for years.
Most major lenders offer portability on their residential products. They want to keep your business. However, “portable” does not mean “automatic.” You must meet the criteria they hold today, not the criteria from when you first signed up. If the bank tightened its lending rules recently, you might find yourself blocked from moving your rate.
The main benefit of porting is avoiding Early Repayment Charges (ERCs). These penalties can cost thousands if you break a fixed-term contract early. By porting, you waive these fees and keep your interest rate until the fixed period ends. This is a massive financial win if rates have spiked since you took out the deal.
Are All Mortgages Portable? A Guide To Lender Policies
You might wonder, are all mortgages portable? The answer lies in your original contract. Most standard residential mortgages from high-street banks come with a portability clause. However, specialist products often exclude this feature.
Sub-prime mortgages or loans for people with bad credit often do not allow porting. The risk profile for these loans is specific to the original setup. Similarly, some “exclusive” low-rate products might trade flexibility for that rock-bottom price. You must check your Key Facts Illustration (KFI) or mortgage offer document.
The property itself matters too. If you move to a “non-standard construction” home—like a timber-framed house or a high-rise flat—your current lender might refuse to secure the loan against it. In this case, the mortgage is portable in theory, but not in practice for that specific house.
Common Scenarios For Porting Requests
Lenders look at risk. If you move to a cheaper house and reduce the loan size, they usually accept this easily. You may even have to pay a partial penalty on the amount you repay. Moving to a more expensive house is harder. You need to borrow more money, and this extra cash often entails a separate interest rate.
This creates a “split loan.” Part of your debt stays on the old cheap rate, and the new “top-up” portion sits on a current, likely higher, rate. Managing two parts of a loan is common but restricts you to that one lender until both deals expire.
Lender And Product Comparison Table
This table outlines which types of loans typically offer portability and the constraints you might face. Lenders differ, but industry standards apply.
| Loan Type / Category | Is It Typically Portable? | Key Restrictions & Notes |
|---|---|---|
| Standard Fixed Rate | Yes | Must pass new affordability & credit checks. |
| Tracker / Variable Rate | Yes | Often portable, but check for “drop-lock” clauses. |
| First-Time Buyer Deals | Yes | Usually flexible to allow upgrading homes. |
| Bad Credit / Sub-Prime | Rarely | Lenders view any change as high risk. |
| Buy-To-Let (BTL) | Sometimes | Criteria are stricter; rental income must stack up. |
| Interest-Only Loans | Varies | Requires a solid repayment vehicle for the new home. |
| Shared Ownership | Complex | Hard to port to a standard full-ownership title. |
The Application Process For Porting
Treat a porting application like a new purchase. You need proof of income, bank statements, and ID. The timeline matches a standard purchase application. Do not leave this to the last minute.
Many buyers ask, are all mortgages portable? because they fear rejection. If you get declined, you cannot move the rate. You must then choose: stay in your current home, or pay the penalty to leave the lender and find a new deal elsewhere. This penalty often ranges from 1% to 5% of the outstanding balance.
Affordability Checks Are Mandatory
Your bank is legally required to check that you can afford the loan. It does not matter that you have paid it for five years without missing a beat. They will stress-test your income against current interest rates, which might be higher than when you first joined.
If you have become self-employed, had a baby, or taken a pay cut, you might fail this check. The MoneyHelper guide on porting explains that passing these strict checks is the biggest hurdle for existing borrowers. Being an existing customer grants you no special pass on safety rules.
Borrowing More Money (Top-Up Loans)
Moving up the ladder usually means you need extra funds. You cannot simply add money to your fixed-rate chunk. The lender will open a second sub-account for the extra borrowing.
For example, if you owe £150,000 at 2% and need another £50,000 for the new house, the extra £50,000 will be priced at today’s market rate—perhaps 5% or 6%. You end up with a blended monthly payment.
This locks you in. If you want to leave this lender later, you might find that your two product end dates do not align. One part finishes in 2026, the other in 2028. Leaving early triggers a penalty on at least one part of the debt. You must manage these dates carefully.
Borrowing Less Money (Downsizing)
Downsizing is simpler but has a catch. If you port your mortgage but reduce the balance significantly, you are effectively overpaying. Most fixed deals limit overpayments to 10% per year.
If you reduce the debt by more than the allowance, the lender will charge an Early Repayment Charge on the difference. Always calculate this cost. If the penalty is high, it might be cheaper to close the whole mortgage and get a new deal elsewhere.
Why A Lender Might Refuse Your Request
Rejection is common. It feels unfair, but banks operate on strict risk models. The most frequent reason for refusal is a change in your credit score. Missed payments on credit cards or utilities since you bought your first home will show up now.
Property Criteria Issues
The new home must be good security. If the valuer spots damp, structural issues, or Japanese Knotweed, the lender will block the port. They are not just approving you; they are approving the asset. If the new house is unmortgageable, your rate cannot go there.
Income Multiples
Banks usually lend 4.5 times your annual income. If house prices have risen faster than your wages, you might need a loan that is 5 times your income. If your current lender caps out at 4.5, they will say no. You cannot force them to lend more than their policy allows.
Comparing The Cost Of Porting vs. Remortgaging
Do not assume porting is the cheapest route. Sometimes, paying the penalty is worth it if you can secure a much lower rate elsewhere or if the new lender offers a higher loan amount. You must do the math.
| Feature | Porting Current Deal | Remortgaging (New Lender) |
|---|---|---|
| Interest Rate | Keeps existing (usually lower) rate. | Current market rate (likely higher). |
| Exit Fees (ERCs) | None (or refunded). | Payable immediately. |
| Setup Fees | Low or zero. | Application and valuation fees apply. |
| Borrowing Power | Limited to current lender’s cap. | Access to lenders with higher caps. |
| Flexibility | Tied to one lender. | Fresh start with new terms. |
Timing The Move Correctly
Timing is everything. Most lenders require you to complete the sale and purchase simultaneously to port the rate. If there is a gap—for example, if you sell, rent for a while, then buy—you usually lose the rate.
Some banks offer a “grace period,” typically 30 to 90 days. You pay the penalty when you sell, and they refund it if you complete the new purchase within that window. You must confirm this window in writing. If you miss the deadline by a single day, the refund is lost forever.
Alternatives To Porting Your Current Loan
If your lender says no, or if the numbers do not stack up, you have options. The market is vast. Do not feel trapped by your current provider.
Remortgaging With A New Provider
Breaking your contract hurts, but sometimes the “top-up” interest rate from your current bank is so high that it ruins the average. A new lender might offer a decent rate on the entire balance, making the monthly payment cheaper overall despite the upfront penalty.
Product Transfers
If you are not moving home but just want a better rate, a product transfer is different. This is switching deals with the same lender. It requires far fewer checks than porting. Porting is strictly for moving house.
What To Do If You Are Denied
If your request is denied, ask for the specific reason. If it is a credit file error, fix it and try again. If it is an affordability issue, consider paying off some consumer debt to improve your ratios.
You can also speak to a broker. Brokers know which lenders have “flexible” criteria. According to Experian’s advice on mortgage transfers, understanding your specific credit profile before applying can save you from a damaging rejection mark on your file.
Final Checklist For Moving Home
Before you put your house on the market, dig out your paperwork. Call your lender’s retention team. Ask them specifically: “What is my maximum borrowing amount if I move?” and “What is the penalty if I leave?”
Get these figures in writing. Real estate agents will want to know your budget. Guessing your borrowing power is a recipe for heartbreak. Knowing exactly where you stand puts you in a strong position to offer on your next home.
In the end, while the answer to “are all mortgages portable?” is technically no, the pathway remains open for most borrowers with stable finances. It requires paperwork, patience, and a bit of math, but saving that low interest rate is often worth the effort.