Mortgages for Home Movers
Find out what your options are for moving home, save time and money with expert advice on mortgages for home movers.
Moving home
When moving home, it can be difficult to know what the best option is for you in terms of your existing mortgage and the payment plan for your new property. Here are some of the things that you should be thinking about if you are moving house. If you'd like to discuss your options in greater detail with us, give us a call on 01823 286271.
What are your options
Below, we have outlined some of the options that may be available to you if you are looking to move home. If you feel that one of these options would suit you, you can speak with one of our advisors and gain a more detailed understanding of the process and they will be more than happy to assist you in achieving your target.
Port your mortgage
If you are an existing mortgage customer, you may be able to port your mortgage from your existing property to the new home you wish to live in. In order to find out if this is an option for you, you will need to send a porting application to your lender, we are more than happy to analyse your circumstances and give you advice on whether or not this is the right option for you, we will also handle the application process for you and speak to the lender on your behalf in order to relieve you of the work involved. The sections below titled 'Further Advance' and 'Down Sizing' offer more detail on the options that you have when porting a mortgage.
Further Advance
A further advance is essentially an additional borrowing on top of your current mortgage deal, this becomes an option when you are looking to move in to a property that holds a value greater than that of your existing home. You will typically pay a different rate of interest on this loan and it can often be cheaper than a personal loan.
Down sizing
If you have a mortgage on your existing property that is greater than the value of your new home, you will have to pay back the difference between the two. Doing this will mean that you have to pay an early repayment charge on the amount you pay back, however, you will avoid the early repayment charge for the rest of the mortgage. In this scenario, the loan will be re-underwritten and steps will need to be taken to show that you can afford the new mortgage.
Let to buy
This option is ideal if you are looking to move in to a new residential property but you're not comfortable with selling your existing property, either because you think it might appreciate in value, hold a good rental income, or you haven't ruled out moving back in to it one day. This strategy allows you to begin renting out your existing property while you move in to a new home.
Things to consider
As with every financial decision, you should first carefully consider your circumstances and stability before deciding whether or not to move forward. Below are a couple of things to think about before making the decision to move house.
Affordability
Affordability - the most important factor when committing to a long term payment plan. We will assess all of your relevant income and outgoings to make sure we have found the right product for you. You need to think about exactly how much you spend each month and if any of the amounts are likely to fluctuate over time, are you in a stable position to add to your list of monthly outgoings? Another key factor to think about is whether you will find yourself starting or expanding your family during the term of your mortgage, have you thought about how having another dependant child will affect your disposable income? These are all things that we will discuss with you before moving forward with the home movers option you have chosen.
Up or down?
When trying to source a new residential property, it can be all too easy to get carried away looking for your dream home, you need to think very carefully about whether or not you have chosen the right type of property at the right price. Is the property a little bit larger than you really need it to be? Could you save money by purchasing something more appropriately sized for a better price? Or, on the other side of that, you may need to think about whether or not you are expecting to grow or start your family during the term of your mortgage loan, perhaps the addition of a child or grandchild is likely; if this is the case, you may need to consider a larger home for a larger family.
