HOME MOVER
What is a home mover mortgage?
Home mover mortgages aren’t that different to standard home mortgages, although the products and options are designed for those who have an existing home or have previously owned one. They are available for all sorts of residences, including flats and houses.
Even if you’ve been a homeowner for some time, the process of buying and selling your property is always daunting. Maybe you waded through the process so long ago that you’ve forgotten how it works. Or, maybe you’ve never moved before and this is all new to you.
Whether you’re a seasoned pro or this is the first time you’re selling a property, our moving house guide will take you through the journey. We’ll tell you how your mortgage could be affected, highlight all the key things to do when moving, run through the costs of moving and outline a few, practical moving house tips.
SELLING YOUR HOME AND GETTING A NEW MORTGAGE
The first part of our moving house guide shares essential steps on moving home and getting a new mortgage, porting your mortgage, moving tips, questions to ask the sellers and the cost of moving home.
Steps On Moving Home And Getting A New Mortgage
There are a number of options available to you should you need an entirely new mortgage when moving home. It's important that you check whether you have any ERCs (early repayment charges) if you're still in your introductory rate period and want to switch to a new lender. If you do, don't worry – you can start to arrange a new mortgage with a new lender when you've got 6 months or less left on your current deal.
You Could Switch to a Different Type of Mortgage Product
It’s sometimes worth sticking with the same type of mortgage if that’s what works best for you. However, personal circumstances change. You may find that a different type of rate or term now suits you better. A mortgage adviser will listen to your situation, explain your options and help you come to a decision you’re confident in.
You Could Choose a Different Interest Rate
You don’t have to stick with the same interest rate product when you take out a new mortgage, only if you port your existing one. You can choose from any available products that the lender has to offer for any new borrowing. These could be fixed, variable, tracker, discount, etc. Your mortgage broker will help you choose one that best suits you and your personal situation.
How to Port Your Mortgage When Moving House
Many mortgages are “portable”, which means you can transfer your current mortgage product to a new property. You’ll need to check with your lender or broker about whether your mortgage is portable and learn more about the T&Cs that your lender will apply.
If you’re thinking about porting your mortgage, remember that sometimes your lender won’t allow you to port your mortgage to a new property, even if it’s possible. This could be for several reasons. For example, the lender might find the type of property you want to buy unacceptable.
When you ask your lender to "port" your mortgage, you effectively have to reapply to borrow. Bear in mind that you may no longer qualify. Your circumstances could be different: you may have a new profession, your outgoings could have increased, or you may have had recent credit problems.
Equally, nothing may have changed for you financially, but your lender may have changed their criteria. In recent years lenders have had to carry out more stringent tests and checks on applications as a result of the 2008 “credit crunch”.
Even if you took out your first mortgage without any hassle, you could still face restrictions the second time around.
You Might Not Be Able to Borrow More Money
If the lender has tightened their affordability rules then you might not be able to borrow the amount you need. You may need to consider using another lender instead.
You Could End Up Borrowing at a Poor Rate of Interest
If you can port and are able to borrow more money, don’t forget that you’re tied to a lender already so you’ll have little choice other than to choose the rate your lender offers you. This may not be particularly competitive and could be far from the cheapest available, leaving you stuck paying a higher rate of interest on the extra borrowing.
