Thinking of moving your mortgage?
Follow our moving mortgage guide for some handy tips!
Moving home is a big moment in your life and one that can be exciting, but also quite stressful. Whatever type of home you have chosen to move to, be it a forever home for a growing family, or a smaller home for your retirement, it’s important to make sure you get the right mortgage for your needs.
The good news is that when you move home, you may be able to take your current mortgage with you. This is known as ‘mortgage porting’ and while it is a great option, it isn’t guaranteed that your current lender will permit you to do it. In the guide below we will run through exactly what mortgage porting is and what other options might be available to you if you are moving home.
What you need to know when moving a mortgage in Ireland:
Moving home? Then you will also need to move your mortgage. If your mortgage is portable, then you will be able to transfer it to your new property in a process known as ‘mortgage porting’.
At Irish Mortgage Corporation, our team can advise if this is a suitable option for you, or if you would be better placed to look at remortgaging with your current lender or even remortgaging with a new lender. Our team will conduct all of the necessary research to ensure that you get the best rate possible for the mortgage on your new home.
What does porting a mortgage mean?
Mortgage porting is the process of transferring your current mortgage to your new home. While most home mortgages are portable, as mentioned above, this isn’t an option for everyone and it’s advisable to speak to a mortgage broker, such as the team at Irish Mortgage Corporation, who can assist and discuss what other options might be available to you.
Keep in mind that depending on the cost of your new home, you may need to increase the size of your current mortgage. If this is the case, then your lender may request that you take out an additional mortgage to cover the difference in the price of your new home. This may also have additional costs such as an increase in your interest rate and a new arrangement fee, so be sure to query this with your current lender.
On the other hand, if you are downsizing and the value of your new property is less than your current one, your loan, and your monthly repayments will likely decrease.
What are the advantages of mortgage porting?
- There are no early repayment charges or exit fees as you will likely be keeping the same terms with the same mortgage lender you use
- If your initial mortgage is at a low-interest rate, you will carry on paying that lower interest rate at your new property. This is great if interest rates have increased since you first took your mortgage out.
- You will save time because you won’t need to go through the entire mortgage application process again as the lender will already have some of the information that they need.
What are the disadvantages of mortgage porting?
- By staying with your current mortgage lender, you may miss out on better mortgage interest rates/terms elsewhere with other mortgage providers.
- If you choose to port your mortgage, you may still need to pay additional fees such as valuation fees, arrangement fees, legal fees and possibly a small exit/transfer fee.
- If the property you want to buy is more expensive than your current one, any additional money that you need to borrow is likely to be at a different rate. This may mean that, in effect, you have two mortgages/products with different rates and different end dates.
If you are moving home and would like to find out more about mortgage porting, speak to a member of the Irish Mortgage Corporation team who can advise you on your options.
Don’t forget about your policies! Contact your current provider i.e. your mortgage protection and home insurance, to find out if they will still cover the mortgage once you have switched. Notifying your insurance broker is important as they will need to reassign your policy to your new mortgage provider.
Enjoy your new mortgage
Once you have set up a direct debit to your new provider then you’re all done. Sit back, relax and enjoy the savings you have made by switching your mortgage!
If you are thinking of remortgaging your home and would like to find out and discuss it with a remortgage expert, speak to a member of the Irish Mortgage Corporation team who can advise you on your options.