1. What is Porting Mortgage?

Porting a mortgage allows you to transfer your existing mortgage deal to a new property when you move home. This calculator helps you estimate your monthly payments when porting your mortgage to a new property in the UK.

2. How Does the Calculator Work?

The calculator uses the standard mortgage formula:

Where:

• \( PMT \) — Monthly payment (GBP)
• \( P \) — Loan principal (GBP)
• \( r \) — Annual interest rate (decimal)
• \( t \) — Loan term in years

Explanation: This formula calculates the fixed monthly payment required to fully amortize a loan over the specified term, accounting for compound interest.

3. Importance of Mortgage Porting Calculation

Details: Accurate mortgage payment calculation is crucial for budgeting when moving homes, understanding your financial commitments, and comparing porting options with new mortgage deals.

4. Using the Calculator

Tips: Enter the loan amount in GBP, annual interest rate as a percentage, and loan term in years. All values must be positive numbers with the loan term typically between 1-50 years.

5. Frequently Asked Questions (FAQ)

Q1: What does porting a mortgage mean?
A: Porting means transferring your existing mortgage deal, including interest rate and terms, to a new property when you move.

Q2: Are there fees for porting a mortgage?
A: Some lenders may charge porting fees, valuation fees, or legal fees. Always check with your lender for specific costs.

Q3: Can I port my mortgage to a more expensive property?
A: Yes, but you may need additional borrowing which could be at a different interest rate than your ported mortgage.

Q4: What if my new property is cheaper?
A: You may be able to port part of your mortgage and pay down the remainder, but lender policies vary.

Q5: Is porting always the best option?
A: Not always. Compare the costs and benefits of porting versus taking a new mortgage deal, as early repayment charges may apply if you don't port.