Moving Home Mortgage Advice
Moving to a new house can be an exciting but stressful time. It is a life-changing decision, and whether you’re moving to your dream home or downsizing, it’s important to get the right mortgage.
But even though you’ve already gone through the process of finding a mortgage when you bought your first home, it doesn’t necessarily mean it will be any easier this time around.
With the added burden of trying to sell your existing home, it can be even more complicated than before. This guide will run you through your options, so you can work out what deal will work best for you.
What should you consider when moving home?
If you have a mortgage but want to move to a new house, you should consider the following:
- Does the mortgage have early redemption penalties?
- Is the current mortgage portable?
- Will additional borrowing be needed to buy the new home?
- Is the current rate better than any new rate that could be obtained in the open market?
- Will penalties apply if I move house while I have a mortgage?
You will also need to prove that you have enough income to cover the mortgage repayments which is usually, but not always, at least £25,000 a year.
The minimum mortgage deposit for a buy to let mortgage is usually 25% of the property purchase price although some lenders can offer deals with a slightly lower deposit.
Porting a mortgage
Porting your mortgage still means your legal representative will pay off your existing mortgage and apply a new one to the new property. The lender, however, will rebate your redemption penalties and usually apply the same rate as your old mortgage to the new one for the balance of the term left on the rate.
Some lenders will insist that the porting occurs on the same day as the redemption of the old mortgage. Other lenders will allow a gap of between 3 to 6 months between the sale of the old home and the purchase of the new one. If there is a gap, the lender will charge the redemption penalties when the old property is sold and refund them on or shortly after the purchase of the new home.
Are you looking for a new mortgage?
If you’re looking for moving home mortgage advice then why not talk to our mortgage advisor today? You can use the form below to arrange a call back. We will answer any questions you have and book you in for an appointment if required.