A portable mortgage is a term used to describe a mortgage that can be moved from one property to the next without penalty. Often, customers who are in the middle of a fixed rate deal and are looking to move, ask “Can I port my mortgage?” This is because they can avoid early repayment charges if their lender allows it.
Not all mortgages are portable but most High Street mortgages are. If you are with a specialist lender, then you may not have the option to port. However, a quick call to your lender will confirm one way or the other.
Even when porting is an option, not all customers choose to do so. A few things to consider are:
A sub-account on your mortgage is created when you port your mortgage and the additional funds end being on a different deal to the original one. This means that although you only have one mortgage and one direct debit, two different rates of interest apply.
Down the line, having sub-accounts can be quite confusing as the different products will overlap each other. To get them back aligned at some point will mean one of the sub-accounts having to drift onto the lenders’ standard variable rate for a period of time.