Moving home mortgages

When a homeowner moves house, the existing mortgage is either repaid from the sale and replaced with a new one, or ported to the new home. Porting keeps the current rate and terms, subject to the lender's checks. Repaying it may trigger an early repayment charge if the borrower is still within a fixed or discounted period.

Whichever route is taken, the lender assesses the move like a new application, with checks on income, outgoings, credit and the new property. The sale proceeds, after the old mortgage and costs are repaid, usually form the deposit for the next home.

Porting means moving an existing mortgage deal to a new property, keeping the rate until the deal ends. Most mortgages are portable, but a lender must approve the new home and the borrower's current circumstances, so porting is not guaranteed. The sale and purchase usually happen at the same time, or within a short period set by the lender.

If the lender declines the port, or the borrower chooses another lender, any early repayment charge usually applies, though some lenders refund it if a new mortgage with them completes within a set time.

Lender rules on porting, overpayments and charges differ widely, and how mainstream lenders compare is set out on the residential mortgage lenders page.

Home movers who need to borrow more than their current loan can usually port the existing balance and take the extra amount on a new product from the same lender. That leaves two parts to the mortgage, often with different rates and end dates. Lenders check that the total loan is affordable on their current rules.

How much a mover can borrow depends on income, outgoings, the deposit from the sale and the new property, in the same way as any purchase. Borrowing less is also possible, though repaying part of a fixed deal can trigger a partial early repayment charge.

Timing matters because most movers sell and buy on the same day, with both sides of the chain completing together. A delay on either side can hold up the move. Some movers sell first and rent, or buy before they sell with a short-term loan, though bridging costs more than a standard mortgage.

A mortgage in principle for the new home, obtained before an offer, shows sellers that funding is likely. How a decision in principle works, and what it does not promise, is set out on the mortgage in principle page.

Some movers look for a home with land, such as a house with paddocks or a smallholding. Standard lenders usually lend on a house with a modest plot, while larger acreages or homes with business use need specialist lenders. The valuation then splits the value between the house and the land, which can reduce the loan available.

Buyers moving to a home with land usually find that the property type, rather than being a mover, decides which lenders suit them.