Introduction

When moving home, homeowners often face the choice between porting their existing mortgage or opting for a new one. This decision can significantly impact your financial situation and the flexibility you have with your new property. This guide compares new and ported mortgages, highlighting key differences, advantages, and considerations to help you make an informed choice tailored to your circumstances.

New Mortgages: What to Consider

Opting for a new mortgage when moving can offer certain benefits:

• Potential for Better Rates: The mortgage market constantly evolves, and you might find a deal with lower interest rates or more favourable terms.
• Tailored to New Circumstances: A new mortgage can be customised to your current financial situation and the specific property you are purchasing.
• Opportunity to Reassess Financial Goals: Applying for a new mortgage allows you to re-evaluate your long-term financial plans and choose a product that aligns with your current goals.

However, securing a new mortgage involves undergoing the full application process again, which can be time-consuming and may incur additional fees.

Benefits and Limitations of Porting

Porting your existing mortgage to a new property also has its unique advantages:

• Continuity of Terms: Porting maintains your existing mortgage terms, which can be beneficial if you have a favourable interest rate.
• Avoidance of Early Repayment Charges: If your current mortgage has early repayment penalties, porting helps you avoid these fees.
• Simpler Process: Although reapplication is required, the process of porting can be simpler than obtaining a new mortgage, as your history with the lender is already established.

However, the limitation lies in the potential lack of flexibility. The existing mortgage terms might not be as suitable for your new property or current financial situation.

Evaluating Your Options

When deciding between a new mortgage and porting:

• Consider Current Market Conditions: Assess the current mortgage market to see if better deals are available than your existing terms.
• Review Financial Changes: Reflect on any changes in your financial situation since you first took out your mortgage.
• Property Value Differences: Consider how the value of your new property compares to your current one, as this can influence mortgage choices.

Summary

Choosing between a new mortgage and porting your existing one is a pivotal decision in the home-moving process. It requires a balance of understanding current market opportunities, evaluating your financial position, and considering the long-term implications of each option. For expert advice tailored to your unique situation, consulting with a mortgage advisor can provide the insights needed to navigate this decision confidently.