Should you be considering moving home... whether it be to buy a larger property, downsize to a smaller property or perhaps you are relocating, there is a lot to consider in terms of your current mortgage and the new mortgage you may require.
- Am I tied into my current mortgage deal?
- Can I move my mortgage to my new house?
- What if I need to borrow more?
- Is my current lender still the best for me?
- How much will this all cost?
All these questions are very relevant and vital to consider when deciding to buy a new home. We can help you answer these and ensure you understand your options at this important time.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Porting Your Mortgage
These days most mortgages are portable, which effectively means you can take them with you to your new home.
Being able to port your mortgage from your current home to your new one could potentially save you a lot of money. For example, you may be 2 years into a 5 year fixed rate when you want to move home, which if your mortgage was not portable may result in your having to pay costly penalties to pay off your existing mortgage early. Assuming your mortgage is portable, you can sell your current home and switch the remaining 3 years of your fixed rate over to your new home, avoiding paying a penalty to do so.
Although most lenders will permit you to switch your current mortgage to your new home, you will have a set period of time in which to do so. The majority of lenders set a maximum of 90 days between selling you property and buying your new home, otherwise the penalties normally applicable to paying off your current mortgage may apply.
Porting & Borrowing More
If you are buying a larger property the chances are that you will also need a larger mortgage. Assuming you are porting your current mortgage to your new home, your lender will provide you with the additional top up mortgage you require, subject to you meeting their lending criteria. This top up will not be at the same rate as you current mortgage however and you are likely be given a choice of new products for this part of your new mortgage.
A New Mortgage
It may be that you have decided to move home and the mortgage you have has already come to the end of its tie in period. In this case you are free to sell your property without concern about being charged any penalty to pay off your mortgage. The likelihood is, however, that you will require a new mortgage to help you buy your new home.
Although it can be tempting to just talk to your current lender in this situation, it could save you a considerable amount of money if you shop around at this time to ensure you obtain the best deal for you. Although the lender you are with may well have been offering the best deals when you arranged your last mortgage, the chances are they no longer are.
How can we help...
Whatever your exact situation when considering moving home we can provide the advice you need to ensure you make the best possible choice. Even if you are porting your mortgage to your new home, remaining with your current lender, it may still prove beneficial to allow us to advise you on your options as there are still many factors to be taken into account when considering the future.