Port it, or start again?
Most mortgages are portable: you can move the existing deal to the new property and keep the rate. That matters if you fixed at a low rate and the current market is higher. Porting is still a new application, so the lender re-assesses your income and the new property, and if you need to borrow more, the extra is usually on a different rate.
If your current rate is higher than what's available now, or your deal is close to ending anyway, a fresh mortgage with a new lender may be cheaper even after fees. A broker runs both sums side by side.
Early repayment charges
Redeeming a fixed-rate mortgage before the fixed period ends usually triggers an early repayment charge (ERC) of 1% to 5% of the balance. Porting avoids it. If you can't port (for example the lender won't lend on the new property, or you're changing lender), the ERC becomes part of the cost of the move. Check your offer document for the exact figure and the date it steps down or ends.
Selling first, buying first, or both at once
Most people in Northern Ireland sell and buy together in a chain, completing on the same day. The alternatives:
- Sell first, rent, then buy. Slower but simple, and you become a chain-free buyer, which estate agents like.
- Buy first with a bridging loan. Short-term finance secured on the property you're selling. Useful when the perfect house comes up before yours has sold, but it is expensive month by month and needs a clear exit. A regulated bridging loan on your own home is specialist territory; make sure the broker is set up for it.
- Let-to-buy. Keep your current home as a rental and buy the new one. You'll pay the 5% stamp duty surcharge on the new purchase because you'll own two properties at completion, and both mortgages need to stack up.
Stamp duty when you move
As a home mover replacing your main residence you pay standard SDLT rates: nothing on the first £125,000, 2% up to £250,000, 5% up to £925,000, then 10% and 12% above that. If you complete on the new home before the old one is sold, the 5% surcharge applies but can be reclaimed if you sell within three years. Work it out.
What a broker does on a move
- Checks whether porting beats a new deal, including ERCs and arrangement fees.
- Gets a mortgage in principle for the new purchase so you can offer with confidence.
- Lines up the mortgage offer with your solicitor's timetable, so the funds are ready for completion day.
- Deals with the lender if the valuation comes in low or the chain moves the dates.
Common questions
Can I port my mortgage to a more expensive house?
Usually, if you pass the lender's affordability test for the larger loan. The ported portion keeps its rate; the extra borrowing goes on one of the lender's current products, so you end up with two parts to the same mortgage.
What happens if my sale falls through after I've applied?
The mortgage offer usually stays valid for six months, so you have time to find another buyer. Tell the broker straight away; if the timescale slips past the offer expiry, they may be able to extend it.
Do I pay the stamp duty surcharge if I own two homes for a short overlap?
Yes, at completion, because you own two properties at that moment. If you sell the previous main residence within three years you can claim the surcharge back from HMRC.
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