Porting a Mortgage with Bad Credit

You've got a good mortgage rate and you want to move house. Porting — transferring your existing mortgage deal to a new property — seems like the obvious answer. But if your credit has deteriorated since you took out the mortgage, porting isn't the straightforward process you might expect.

What Is Porting?

Porting allows you to take your existing mortgage deal — including the interest rate, remaining term, and any special conditions — and apply it to a new property. Instead of paying early repayment charges (ERCs) to exit your current deal and then taking a new mortgage, you simply move the deal with you.

Most fixed-rate and tracker mortgages include a porting option in their terms. But here's the crucial detail: porting is not a right, it's a re-application.

Why Lenders Reassess You

When you port, the lender treats it as a new mortgage application on a new property. They need to assess:

• Your current creditworthiness — not what it was when you first applied
• The new property — is it suitable security?
• Affordability — can you still afford the mortgage based on current circumstances?
• The new loan-to-value ratio — does the mortgage work against the new property's value?

This means if your credit has worsened since your original application, the lender can decline the port even though you've been paying your existing mortgage perfectly.

Common Reasons Porting Is Declined

New Adverse Credit

If you've acquired defaults, CCJs, missed payments, or other adverse credit since your original application, your lender may decline the port. Even if you've never missed a mortgage payment, other credit issues affect their assessment.

Affordability Changes

If your income has decreased, your debts have increased, or you're now self-employed when you were previously employed, the affordability calculation may no longer work.

The New Property

The lender might not like the new property — non-standard construction, short lease, unfavourable location, or a valuation that doesn't support the mortgage amount.

Changed Lending Criteria

Lenders update their criteria regularly. Even if your circumstances haven't changed, the lender's rules might have. A credit score that was acceptable three years ago might not meet today's threshold.

What Happens If Porting Is Declined?

This puts you in a difficult position:

Option 1: Stay Put

If you can't port and don't want to pay ERCs, you could decide not to move. Not ideal, but sometimes the financially sensible choice.

Option 2: Pay the ERCs and Get a New Mortgage

If your deal has early repayment charges, you'll need to pay them. ERCs are typically 1-5% of the mortgage balance. On a £200,000 mortgage, that could be £2,000-£10,000. You'd then take out a new mortgage — potentially with a specialist lender if your credit is the issue.

Option 3: Wait for the Deal to End

If your fixed rate or deal period ends soon, you could wait. Once you're on the lender's SVR (standard variable rate), there are usually no ERCs. You can then move and get a new mortgage without penalty.

Option 4: Negotiate with the Lender

Sometimes a conversation helps. If the issue is borderline, your lender's retention team may have more flexibility than the initial assessment suggests. Explain your situation, emphasise your perfect payment record, and ask if they'll reconsider.

Porting When You Need to Borrow More

If you're moving to a more expensive property, you'll likely need additional borrowing on top of what you're porting. Most lenders allow this but treat it as two parts:

1. The ported amount — at your existing rate
2. The additional borrowing — at a new rate, based on current affordability and credit assessment

The additional borrowing is a completely new application. If your credit has issues, you might be able to port the original amount but be declined for the extra borrowing. In this case, you'd need a second charge mortgage or to find the additional funds elsewhere.

Alternatives to Porting

Remortgaging to a Specialist Lender

If your credit has deteriorated, a specialist lender like Kensington, Pepper Money, or Aldermore may accept you for a full remortgage on the new property. The rate will likely be higher than your current deal, but at least you can move.

Product Transfer (If Staying Put)

If porting fails and you decide to stay in your current property, you can often do a product transfer when your deal ends — moving to a new rate with your existing lender without a full credit reassessment. This keeps you on a competitive rate even with adverse credit.

Selling and Renting Temporarily

If your credit issues are temporary (recent defaults that will age, an IVA nearing completion), it might make sense to sell, rent for a year or two while your credit improves, then buy again with better rates and more options.

Improving Your Chances of Porting

If you know you want to move and need to port:

1. Check your credit reports well in advance — fix any errors
2. Pay down debts to improve your debt-to-income ratio
3. Maintain perfect payments on your existing mortgage
4. Talk to your lender early — get an informal indication before finding a property
5. Use a broker — they can assess whether porting is realistic or whether you need a Plan B

The Bigger Picture

Porting is designed to reward loyal customers, but it's not a guaranteed right. If your credit has changed, approach the process with realistic expectations and have a backup plan. A declined port isn't the end of your moving plans — it just means the route needs to be different.

This is educational content, not financial advice. Your situation is unique — speak to a qualified mortgage broker before making any decisions.