If it’s a while since you brought your last property, you might like to refresh your memory about the process. Perhaps your circumstances have changed, your family has grown or you’re busier than ever – whatever your situation, using specialist mortgage services this time around really could save you money. Take a step in the right direction with our Moving Home Mortgage Guide.
GET IN TOUCHMoving from a home you already own isn’t much different from buying your first property. You might want to keep it really simple, selling where you live and buying your next place. Or you might prefer to keep your existing home and rent it out, which is known as ‘let to buy’. This could be a one-off investment, or an exciting step towards having a property portfolio. Whatever your plan, a broker can give you easy-to-understand, hassle-free advice about your options.
If you’re planning on moving home and have a mortgage on your existing property, you might wonder whether you can take your current mortgage with you. Often, the answer is yes, and the process is called ‘porting’. Porting a mortgage means taking your current mortgage rate with you to a new property. Lots of mortgages are portable, which means you can move them across to a different property, but it’s important to weigh up the pros and cons first.
Usual circumstances for porting your mortgage would be moving to a new home and borrowing more before the term of your current deal has finished. If you’re on a really competitive mortgage rate, or you’ll be hit with steep early repayment charges for leaving your current mortgage, it can make good financial sense to stick with the same deal. Some lenders charge thousands of pounds in penalties if you redeem a mortgage early, so check how much you might have to pay if you were to switch to a different mortgage deal rather than transfer.
However, transferring your mortgage across to another property isn’t as simple as just changing the address on your mortgage forms. You effectively have to reapply for your mortgage, even if you’re not changing the term or the amount you’re borrowing. That means you’ll need to supply proof of identity as well as evidence of your income and outgoings – in fact all the information you had to provide when you first applied for your mortgage.
The lender will need to carry out a mortgage valuation of the property you’re purchasing too, to confirm that it provides adequate security for them to lend against. Once they’ve assessed your application, they’ll tell you if you’re able to move your mortgage or not.
You may have to pay an early repayment charge to your existing lender if you remortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £499.
Full details of our fee structure can be found here.
As soon as you're ready to talk things through, just give us a call on 0800 144 4744 or fill out your details below.
