Home Mover Mortgages – Save When Moving
Home mover mortgages are slightly more complicated than a first time buyer mortgage, as you’ll naturally be part of a chain including other sellers and buyers. Whether you’re thinking about upsizing, downsizing, or simply changing lenders, finding the right mortgage is just as important as finding the right property.
The good news about being a home mover, is you’ll have more lenders to choose from than when you were a first time buyer. If your financial situation has improved, you could be able to borrow more money from lenders and hopefully you will have built up equity in your existing property.
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What to consider when moving home
What are home mover mortgages?
A mortgage for someone who already owns a property and is seeking to move home, either to up-size or down-size for example.
Who can apply for a home mover mortgage?
Unlike first time buyers, home mover mortgages are for existing home owners often looking to upsize or downsize to another property.
What are the differences between a remortgage and home mover?
A Remortgage means you change your current mortgage agreement often with the same lender. This applies to both staying put in your current house OR porting to a new property.
Home mover mortgages are simply a new mortgage when applying to purchase a new property. Most commonly this means applying for a larger mortgage loan to secure a larger or more expensive property.
What happens if you have a mortgage but want to move?
Porting a mortgage is the process of moving your existing mortgage to a new property. Your mortgage broker can help you explore new markets lenders, however sometimes you will need to speak to the lender directly to gain permission/check. If affordability is fine this is normally an option.
Can I move my mortgage to another lender or bank?
You are able to apply for a mortgage with any new lender, however it’s worth checking for any early repayment charges your current lender may have. It can still be worth changing lender if the long term savings outweigh the repayment charges. You should use a comparison service to compare the costs of changing before proceeding. Get in touch with us to work out your costs.
Can I borrow more to move house?
The amount you’re eligible to borrow depends on your income and what you can realistically afford to pay back. Lenders need to ensure the payments are going to be made, so won’t allow applicants to apply for unrealistic mortgages. Affordability is used for any mortgage application so the amount you ask to borrow must fit that first.
Once you pass the “decision in principle” credit stage, you know the option is available should you wish to use it.
Should I port my mortgage when moving home?
If you’re currently on a standard variable rate mortgage with no repayment charges, it’s worth considering moving your existing mortgage on to your next property. This process is known as porting. The main reason for changing mortgage lender is to secure a better loan deal with lower costs. Lenders change their interest rates daily depending on market trends, so there is normally a chance after 2,3 or 5 years to improve on your mortgage deal.
If you’re looking to change your current mortgage provider as part of your home move, it’s important to know whether you’re liable to pay your existing lender any early repayment charges. Many lenders have set charges to cover the costs of you leaving your mortgage agreement early. Similar to a termination fee. When changing provider it’s important to weigh up these costs against any potential savings. Whether you’re looking to upsize or downsize as part of a home move, always consider your affordability, the length of your mortgage agreement and whether a new rate covers any additional expenses. As your mortgage broker we can help you compare all costs with ease.