Moving Home Mortgages
- Moving Home Mortgage Basics
- Mortgages To Move House
- Moving Your Current Mortgage
- What To Look For When Moving Home
Moving Home Mortgage Basics
Moving home should be an exciting time in your life. But to make your dream home a reality – and to ensure it’s affordable once you get there – it’s crucial that you get the right mortgage deal.
Generally, you’ll need to have at least 5% or 10% of the purchase price to put down as a deposit on your new property – which you’ll hopefully be able to raise through the sale of your existing property. However, if you’ve not got much equity in your home, you may need to top up with your savings to secure the mortgage you need. Either Mouseprice or Zoopla can give you an idea of what your current property may be worth,
Mortgages to Move House
Assuming you can raise that deposit, the next step is to consider which mortgage is right for you. It makes sense to take impartial advice from an expert such as a Mint FS Adviser, who can help run you through all the available loans that suit your needs.
Most mortgages these days are portable, meaning that you can transfer them from the property that you originally borrowed against to the home to which you want to move. Lenders will want to value the property – and you may need to borrow more to secure it. There may also be fees to pay for the transfer. A few hundred pounds is typical to port a mortgage to a new property.
Moving Your Mortgage
Moving home, however, is often an opportunity to look around for a better mortgage deal. Like any remortgage you should start by checking whether there are any penalties to pay on your existing home loan. In particular, there are likely to be fees and additional interest charges if you’re still in the special offer period of the loan – on a fixed or discounted deal rather than the lender’s standard variable rate.
In order to be better off by moving mortgage provider, you will need to find a deal that is sufficiently cheap to cover the cost of these penalties. That’s not impossible, though it will be easier to save money if your current deal is penalty-free.
Mortgages for those moving home are increasingly competitive, compare typical moving home mortgage rates.
But don’t forget to consider the impact of arrangement fees and other charges lenders may levy – these will typically be added to the mortgage value, but will add to the headline rate of interest payable.
What To Look For When Buying A Home
A new mortgage deal isn’t the only thing you need to be looking for when you decide to move home. There are many other factors to think about and doing your research beforehand can save you a lot of money and trouble when you move in. With so much on your plate already, it would be rude of us not to lend a helping hand – so that’s exactly what we have done!
Moving Home: a step-by-step guide
The fact you’re moving home doesn’t mean you have to change your mortgage, though it might be a good opportunity to do so. Most mortgages nowadays are portable – that is, you can take them with you from one property to another, subject to some checks by the lender. The process is usually quite simple: you can break it down into a number of key steps.
1. Talk to your current mortgage lender
Start by talking to your current mortgage lender – it is worth getting to grips with your options even before you’ve identified the property you hope to move to. You’ll need to check what transferring the mortgage will cost – a charge of a few hundred pounds is quite typical.
2. Assess your borrowing needs As you start looking for a new home, think about whether you’ll need to borrow additional sums to secure the type of property you’re after. If so, you’ll need guidance on how much lenders are prepared to advance. Your application for additional finance will be subject to affordability checks looking, looking at what you can afford to borrow based on your current circumstances. You can apply for more funding from your existing lender, or a new provider if you’re considering remortgaging.
3. Look at remortgaging
While you can transfer your mortgage, you don’t have to. The house move might be a good opportunity to review your current mortgage arrangements and to look at whether remortgaging makes sense.
Remortgaging may be a good idea whether or not you need to borrow more. But don’t just look at the headline rates of interest offered by rival mortgage lenders. You need to understand what the total cost of the monthly repayments over the term of the new deal will be compared to the total cost of the monthly repayments on your current mortgage. Don’t forget to add in all the charges you’ll incur – such as any exit penalties you might pay from your current arrangement and arrangement fees for the new deal.
4. Complete the application process
While the application process for the additional finance will be similar to what happened when you took out your first mortgage, you don’t have to go for the same type of loan. If your existing deal is a tracker mortgage, for example, but you want to fix the rate on the new borrowing, that’s fine.
If you’re remortgaging as you move home, the new lender will also want to value the property you’re buying and to see a survey of the property. You’ll go through a credit scoring process and be asked to provide evidence of your income, as well as other basic documentation.
5. Take independent advice
In practice, while transferring your mortgage when moving house should be straightforward, it makes sense to take expert advice on whether this is your best option. If not, an adviser can also help you identify the best alternative products – and to arrange additional borrowing if needs be.
Our expert mortgage advisers will search thousands of mortgage deals made available to us and pick out the one that’s right for your circumstances.
What To Look For When Buying A Home
When looking for a new home, there is a huge amount to take into consideration. Budgets, locations, rooms, styles and personal preferences all have to be juggled with before a decision can be reached. You would be forgiven, therefore, if some of these details slipped your mind during a viewing. Unfortunately, this doesn’t make them any less important, nor make them need answers any less!
Starting from when you arrive at your viewing – we have looked at what you should spot from the outside of the house before moving inside to the ground floor and beyond. We have also provided some insight into what you should be looking out for in the local area to make sure there are no nasty surprises if you chose to move in
How Mint FS can help you
At Mint FS our advisers work hard to find the right mortgage deal when you’re moving home.
Whether you’re looking to buy a bigger property and borrow more – or want to let out your current home and buy somewhere new elsewhere – our impartial advisers can talk you through your options.
Our independent mortgage advisers will undertake a comprehensive search of the market – looking at thousands of products – to ensure they find what suits your needs – you can be confident that they’re focused on getting you the very best deal. So if the best bet for you is to stick with your existing lender, we’ll let you know.
See what you could save with a chat today
Our advisers are experts in thinking outside the box, we will move heaven and earth to make your property dreams come true. Want to know more? Call us today on 0330 1355914 or complete our contact form and we will call you back.