Whether you are moving for work, have a growing family, are looking to downsize or you simply need more space, moving home can be a stressful and life changing decision that requires proper planning and consideration of what to do with regards to your mortgage.
At Bower, our independent home finance specialists provide our customers with impartial and honest moving home mortgage advice and guidance on everything from suitable products and deals to fees and charges. Sourcing the very best moving home mortgages available for your new purchase and presenting them to you in a way that is clear and easy to understand, our expert advisors are here every step of the way to help you reach a positive, practical and informed decision that is right for your needs.
Where To Start?
It is hard to know sometimes where to even begin when it comes to big financial decisions such as how to move home with a mortgage already on an existing property. Before you can make an offer on your next home, you will need to have an Agreement in Principle from a mortgage lender; this will give you an indication of how much you can borrow. Most estate agents need to see this to ensure that you are a serious buyer.
Moving Home Mortgage Options
If you are looking to move home there are 3 options when it comes to what to do with regards to your mortgage and they are to transfer your existing mortgage over to the new property which is called ‘porting’, to remortgage with your existing lender or to find a new deal with a different lender. It is always worth discussing these options with a mortgage advisor before you make a decision as they will be able to provide professional advice on which option would be best suited to your circumstances.
Moving your current mortgage over to your new property is known as ‘porting’ but is not available on all types of mortgages so you will need to check with your existing lender that it is in fact portable before you can proceed. You will still be required to go through the application process for the loan and depending on the price of the new property may need to increase the size of the mortgage.
Remortgage With Your Current Lender
If you want to stay with your current lender but they have a better deal available than your existing one, then you may wish to secure a new deal with them. It’s worth noting that although you may find a better deal, there can often be extra costs such as early repayment charges or exit fees which can be a significant amount of money, so it is always advisable to properly calculate and weigh up your options before you continue.
A New Mortgage With A New Lender
If your current lender does not have a suitable product available or you can get a better deal elsewhere with another mortgage provider then you might opt to get a new mortgage with a different lender. Again this could result in charges, fees and costs which need to be factored into your calculations when deciding if switching is the right move.
Why Switch Lenders?
Although you may already have a mortgage with your current lender, it might not be financially sound to stick with them for your next house purchase. New mortgage deals are constantly coming on to the market and by instructing a broker like Bower Mortgages to search for a better deal on your behalf, you could save thousands over the life of your mortgage.
At Bower we have access to a wide range of mortgages, including specialist mortgages designed for people with more complicated circumstances, such as those who have become self-employed since taking out their last mortgage.
You may even be considering building your own property, in which case our experts can help search for a great Self-Build Mortgage for your needs.
Things To Consider
Moving house is a major change in your life, but it’s also a great time to consider your future goals and aspirations. Planning ahead will help your mortgage specialist see whether unnecessary costs can be avoided, and which features you need in your mortgage to meet your long term goals (shorter Early Repayment Charge periods or the ability to take repayment holidays, for example).
At Bower, our service is personalised, and we know that by taking the time to get to know you – and your individual needs and financial goals – then we can expertly tailor your mortgage requirements. And doing this could help save you money and give you the flexibility or certainty you need from your mortgage.
If you have any questions or would like to speak with one of our friendly, knowledgeable advisors about moving home with a mortgage simply get in touch or call free on – 0800 411 8668.
What is a home mover mortgage?
When you already have a mortgage on a property and decide to move, you need to choose which type of home mover mortgage you will use, the decision for which should be based on what type offers the best, most practical and financially beneficial deal.
There are 3 options when it comes to moving home mortgages;
- ‘Porting’ which is when the mortgage you have on your current property is moved over to the new property.
- You take out a new mortgage to replace your existing one but with your current lenders.
- You choose a new mortgage deal with a different lender.
Whatever you decide to do be sure to seek professional guidance from an experienced mortgage advisor because although you may find a better or cheaper deal, some of these options can incur additional costs such as early repayment charges and exit fees which can make them less favourable.
How does the value of your property affect your mortgage?
Following a mortgage valuation, a surveyor will value your property and relay their findings to your mortgage lender. If they agree on the sale price of the home or the remortgaging price, then the lender will likely be able to offer the money for the loan.
In cases where the value of the property has risen, therefore increasing the equity, it is viable to get a new, larger mortgage which amount reflects the increase in value.
A down valuation is something that occurs when a property is worth less than the agreed sale price, or proposed remortgage value. Obviously if you were hoping to move to a house of greater value then this can be unlikely in these cases, however there are a few things you can do such as trying an alternative lender to get closer to your agreed sale price. If you were planning to downsize or move to a property of lesser value, then this will likely not be an issue.
How do you apply?
If you are looking to move home and want to know more about the options available to you then it is a good idea firstly to speak to a mortgage specialist who will be able to help, guide and support you from the start. You will need to know from your current provider the terms and conditions of your existing mortgage which should take up to 10 days to be delivered following your request.
With this information an independent mortgage specialist will be able to access the whole mortgage marketplace, sourcing the very best deals to suit your circumstances and present them so that you can decide which option is best for you.
Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Some buy to let mortgages are not regulated by the Financial Conduct Authority.
Bower Mortgages provides impartial whole of market advice with an award winning customer service experience. There will be a fee for mortgage advice. The precise amount will depend upon your circumstances but a typical fee will be £595 on completion of the mortgage.
Bower Mortgages is a trading style of Bower Retirement Limited and is Authorised and Regulated by the Financial Conduct Authority. Financial Services Register Number: 451607
Speak to one of our dedicated customer specialists or arrange your free, initial no-obligation quote by calling us on freephone 0800 411 8668.