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Porting Your Mortgage: Understanding the Process

Last updated: December 18, 2023

Graham and Cam from Hudson Rose pointing to a laptop whilst working on a mortgage application

Porting your mortgage can be a convenient option when moving to a new property. However, it’s important to understand the process and potential challenges involved. In this article, Hudson Rose, a UK mortgage broker, provides insights and advice on porting your mortgage, even if a Decision in Principle (DiP) indicates that the bank cannot help you.

 

Hudson Rose team crossing Bath Road in Cheltenham

 

Moving to a new property can be an exciting time, but it also comes with its fair share of challenges. One of the biggest concerns for homeowners is what to do with their existing mortgage when they want to move. This is where porting your mortgage can come in handy. Porting allows you to transfer your current mortgage to a new property, avoiding early repayment penalties and potentially securing a better interest rate. You stay with your current mortgage lender, switch the mortgage to the new property and keep the same monthly payments until the end of the agrees term. However, the process is not always straightforward, and there may be hurdles along the way.

 

The Importance of a Full Application

 

When it comes to porting your mortgage, the lender needs to reassess your suitability for the loan and therefore you will need to submit a full apapplication. They will consider factors such as changes in your circumstances, the property you want to move to, and their current lending criteria. It’s important to understand that a Decision in Principle (DiP) is not a guarantee of mortgage approval. It is simply an initial assessment based on the information provided at that time. If your DiP was declined, it doesn’t necessarily mean that your full mortgage application will be rejected as well.

 

Responsible Lending and Risk Mitigation

 

Residential Mortgages are heavily regulated in the UK for good reason. Lenders have a responsibility to ensure that they are lending responsibly and mitigating the risk of default. If a lender were to waive the porting application without conducting proper checks, it could lead to potential problems down the line, such as mortgage arrears and, worst case, repossession.

 

By requiring a full application, lenders can assess any changes in your circumstances and determine if you still meet their lending criteria. This is to protect both you and the lender from potential financial difficulties in the future. While it may seem like an inconvenience, it is ultimately in everyone’s best interest.

 

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Exploring Other Options

 

If you have received approved DiPs from other banks, it’s worth considering your options. While porting your mortgage can be advantageous, it’s not the only route available to you. By exploring other lenders, you may find better terms, interest rates, and even incentives that outweigh the early repayment penalty you would incur by paying off your existing mortgage.

 

Consult with a Mortgage Broker

 

To navigate through the complexities of porting your mortgage and exploring alternative options, it’s highly recommended to seek the guidance of a mortgage broker. A broker can assess your situation, understand your needs and preferences, and provide tailored advice based on their expertise and access to a wide range of lenders.

 

At Hudson Rose, we specialize in helping individuals to find the best mortgage solutions. Our team of experienced brokers can guide you through the porting process, explore alternative lenders, and help you make an informed decision that suits your financial goals.

Take the Next Step

 

If you’re considering porting your mortgage or exploring other options, don’t hesitate to reach out to us at Hudson Rose. Our friendly team is ready to assist you in finding the best mortgage solution for your needs. Contact us today at tel: 0330 122 9920 or email hello@hudson-rose.co.uk to schedule a consultation.

 

Remember, porting your mortgage can be a viable option, but it’s essential to understand the process and potential challenges involved. With the right guidance and support, you can make informed decisions that align with your financial goals and ensure a smooth transition to your new home.

 

*Disclaimer: This article is for informational purposes only and should not be considered financial advice. Please consult with a qualified professional for personalized guidance tailored to your specific circumstances.*

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Check out more blogs from the Hudson Rose team:

Redeeming Your Mortgage: Exploring Additional Borrowing

Understanding the Process of a Specialist Mortgage Lender

Everything You Need to Know About Conveyancing

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Hudson Rose Services Ltd is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority.
Hudson Rose Services Ltd, trading as Hudson Rose. Registered Office: 7 Bridge Street, Nailsworth, Stroud, GL6 0AA
Registered Company Number: 11008147 Registered in England. FCA 799302

Hudson Rose Services Cirencester Ltd, trading as Hudson Rose. Registered Office: 78 Dyer Street, Cirencester GL7 2PF Registered Company Number: 13349772 Registered in England

There may be a fee for arranging a mortgage and the precise amount will depend on your circumstances. This will typically be £499. There is no charge for any initial consultation.

Your Home may be Repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Not all forms of Property Development Finance are regulated by the Financial Conduct Authority

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