If you’re looking to move home but already have a mortgage in place, you’re classed as a ‘home mover’ in the mortgage world. You’ll need to decide whether to keep your existing mortgage when you move or change to a different deal.
What you do with your mortgage depends on both your preferences and your circumstances. We look at what factors impact whether you should ‘port’ your current mortgage or remortgage when you move home.
When you decide to buy your next home, you can either take your existing mortgage with you, which is known as porting your mortgage, or remortgage onto a new deal. How the value of the property you’re moving to compares to your existing home, whether or not you need to borrow more to purchase it, and how far you are into your current mortgage deal will all play a role in your decision.
It’s often easiest to port your mortgage to your new property, assuming you are happy with the existing terms and interest rate. If you want a more flexible mortgage or think you could get a better deal due to the equity you’ve gained so far, it may still be worth looking at other mortgage options.
If you're upsizing to a more costly home, you may need to consider a remortgage to borrow more, unless the value of your original property has grown to meet it. Keep in mind, however, that you may have ERCs (early repayment charges) or other fees to pay, unless your existing mortgage deal is at or near the end date.
Another option, if your lender allows, may be to port your existing mortgage and take out a second loan with them to cover the difference in price. Policies on additional borrowing during a port vary by lender, and some offer more flexible options than others.
Lenders won’t usually increase your current loan (and if they do, you may have to pay a fee), so the terms of your new borrowing are likely to be a separate deal entirely. You will also need to pass the lender's affordability checks.
While a cheaper home may seem like the simplest option, it depends on how much cheaper the new home is and the size of your existing mortgage balance. If your outstanding balance is more than the cost of the new mortgage, it won’t usually be possible to secure it on your new property.
Equally, if the property is cheaper than your original loan size and you keep the same mortgage, the LTV (loan to value) will be higher, as that loan size will represent a greater proportion of the value of this property than it does with the last. This is considered higher risk, so lenders may be reluctant to help you or raise your interest rate to reflect the additional risk.
To explain this more clearly, here is an example:
You buy a £200,000 property with a £150,000 mortgage. This means that you would have provided the other £50,000 as a deposit, making your original LTV 75%.
If your next home is only worth £150,000, but you’ve only repaid £10,000 of your original mortgage, you’re now borrowing £140,000 on a £150,000 property, which makes your LTV 93%, without having borrowed any more money.
You may not need a cash deposit when you move home if the equity built up in your current one can be used to cover it. That said, it’s sometimes possible to top up your equity with a cash deposit if you’re unable to achieve the necessary LTV.
Equity is the element of your home that you already own, so this includes your original deposit, and whatever you’ve repaid since then, as well as any increase in property value.
If you’re moving to a similar value property and are happy with the terms of your current mortgage deal, then porting your mortgage may be the easiest option. This basically means taking your mortgage with you.
This is possible with most modern mortgages, assuming your lender is willing to approve your new property choice as security for your mortgage. Keep in mind that most lenders will reassess your eligibility and affordability based on their current lending criteria, so if your financial circumstances have declined or you no longer meet the lender's criteria, it’s possible that you can be turned down to port your mortgage.
You might choose to remortgage if you’re already at the end of your current mortgage deal and believe you could secure a better deal, or if you’re hoping to change the terms or length of your existing mortgage. However, with interest rates remaining relatively high into 2025 compared to historic levels, porting an existing lower-rate mortgage could sometimes be the more cost-effective option.
You also might not have another option, particularly if you need to borrow more in order to buy the new property, as not all lenders will allow you to borrow more when you port. It may also be cheaper and easier to remortgage onto one new deal than to have two separate mortgages with your existing lender on different terms.
In some cases, you may be able to, assuming the property is not considerably cheaper than your original one. Some lenders have a limit of around 10% less than your original property value.
You’ll also need to keep in mind the new LTV and whether you’ll still qualify for the loan on that basis, as per the example above in the ‘If you’re moving to a cheaper property’ section. Some lenders may ask you to repay some of the loan to remain within their maximum LTV levels.
Negative equity is when the value of your home falls below your outstanding mortgage balance. This can happen when property values fall dramatically, or if you stop repaying your loan, or a combination of the two.
Many lenders will be reluctant to offer you a new mortgage deal under these circumstances, and it’s also unlikely that you’ll be able to port. However, a broker, like ourselves, should be able to help you plan a longer term solution.
Last updated: 28/04/2025
[Disclaimer] This content is intended for general guidance and is not a substitute for personalised mortgage advice.
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