As a homeowner, you’re likely familiar with the process of getting a mortgage. But, even if you’ve been through it before, moving homes can be stressful. There are a lot of important decisions to make, and it’s crucial to get the right mortgage. Luckily, we’re here to help. This guide will run you through your options to determine what deal will work best for you.
You may have to pay an early repayment charge to your existing lender if you remortgage.
When you are looking to move house, a few mortgage options are available. You can transfer your mortgage to the new property, remortgage with your current lender, or remortgage with a new one. Each option has its own benefits and drawbacks, so it’s important to weigh up all of your options before making a decision.
When you port your mortgage, you are essentially reapplying for the same deal with your current lender. This process is similar to when you first applied for the mortgage. However, depending on when you took out your mortgage, your lender’s criteria may be stricter, so putting together a well-crafted application is important. We can help you do this. If you missed any mortgage payments, this could work against you.
If you are upsizing or moving to a nicer home, chances are you will need to borrow more on your mortgage to cover the cost. Depending on how near you are to the limit of how much your lender will let you borrow, this could make things tricky. When you port your mortgage, you are still tied to the lender who gave you the mortgage.
If you’re thinking of remortgaging with your current lender, there are a few things you need to know. Firstly, you’ll likely have to pay an early repayment charge if you leave your current deal before the end of the term. This charge can be anywhere from 1% to 4% of the total value of your mortgage, depending on how much time is left on your current deal. Secondly, you might have to pay an arrangement fee and valuation fee for your new mortgage on top of this charge. So before making any decisions, it’s important to compare all the costs involved and see which deal is best for you.
One advantage of remortgaging with a new lender is that you may be able to get a lower interest rate, and this could save you money in the long run. Another advantage is that you may be able to get a more favourable mortgage term, such as a longer repayment period. This can help you to manage your monthly expenses.
However, there are also some disadvantages to consider. One is that early repayment charges may be for quitting your existing mortgage mid-term. On top of this, your new mortgage may have arrangement and valuation fees. Ensure you include these in your calculations when deciding if switching lender is the best move for you.
Before making any decisions, it’s important to talk to one of our mortgage advisors, who can help you weigh all the pros and cons of remortgaging with a new lender.
The rates you will be offered on a mortgage for your new property can depend on whether your new home is more or less expensive than your current one. If your new home is more expensive, you may have a more challenging time securing a mortgage, as the bank may see you as a greater risk. If your new home is cheaper, you may be offered a lower interest rate, as the bank will see you as a lower risk.
When it comes to moving to a bigger and more expensive property, securing a mortgage is often one of the biggest obstacles people face. This is because your lender wants to ensure you can afford the higher rates associated with a bigger home.
One way to increase your chances of being approved for a mortgage is to show that your current house has increased in value since you bought it.
Another way to prove your affordability is to show that your wages have gone up or your outgoings have decreased. This could be due to, for example, you receiving a pay rise or your children moving out of home. If you have had any problems keeping up with your previous mortgage repayments, you may find it challenging to secure a larger mortgage for your new property.
If you’re downsizing, it’s important to consider how this will impact your mortgage. Depending on the size and location of your new home, you may find that your loan decreases in size – meaning that your monthly repayments will fall too. In some cases, you may even be able to buy your new home outright if the value of your current property has increased and the difference in value between your old and new properties is wide enough.
Deciding to downsize can be a big one, but it’s worth considering all of the potential benefits, including how it could impact your mortgage. By weighing up all of the pros and cons, you can make an informed decision about whether downsizing is right for you.
When moving home, it’s important to keep your costs down as much as possible. One of the biggest expenses when moving is usually the cost of your mortgage. If you’re moving to a new property of a similar value to your current one, then porting your existing mortgage could be a wise option. This means that you won’t need to take out an additional loan to cover any higher costs and therefore wouldn’t need to pay any more arrangement or valuation fees.
If your current mortgage is a fixed-rate deal, it could be worth waiting for your term to end so you are rolled on to your lender’s standard variable rate. While SVRs usually have high rates and are uncompetitive, they come with no early repayment charges if you decide to terminate your deal. Fixed-rate mortgage deals typically last between 2 to 5 years, so depending on how far into your term and how desperate you are for a move, consider holding off until you are on an SVR.
So, you’re still considering moving? Whether you need more space, your family has grown, or maybe you want to downsize and simplify your life, there are many factors to consider when choosing the right mortgage. In this post, we’ve outlined some of the most common options available to home-movers. We know it can be daunting, so please don’t hesitate to get in touch if you have any questions – our experts will help steer you in the right direction.
We’re here to help you through the process of finding a new mortgage, no matter what stage you’re at! Give us call.
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Your home may be repossessed if you do not keep up repayments on your mortgage. There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1%, but a typical fee is 0.3% of the amount borrowed.
Expert Mortgages is a trading name of Expert Mortgages Herts & Cambs Ltd which is an appointed representative of Mortgage Advice Bureau Limited and Mortgage Advice Bureau (Derby) Limited which are authorised and regulated by the Financial Conduct Authority.
Expert Mortgages Herts & Cambs Ltd. Registered Office Address: Hardcastle Burton, Market Hill, Royston, United Kingdom, SG8 9JN. Registered in England Number: 13095386.
