Whether you are moving to a larger property, downgrading to something smaller, or relocating to a new area, you need to feel confident that you have the right mortgage deal for you. It is likely that since taking out your first mortgage, your circumstances and your preferences may have changed.
Home mover mortgages (also known as house mover mortgages) are mortgage offers that are specifically designed to help people get the right mortgage loan for their property.
There are typically three options for those looking to move home and who need to adjust their mortgage. Some people may decide to retain their existing mortgage and transfer the loan to the new property. Others choose to speak to their current lender about remortgaging to a new deal. And others may take out an entirely different mortgage with a new lender to fund their new home.
Let’s find out more about each option.
Taking your mortgage with you – also known as ‘porting’
If you are happy with your existing mortgage deal, you may wish to transfer your mortgage to your new home.
This is called porting.
It is popular amongst those moving to a new home of a similar value or those with a long timeframe left on their mortgage.
Porting your mortgage can be a quick and easy option for many home movers, although there may be specific terms and conditions that you have to adhere to. To apply to port your mortgage to your new home, you will still have to undertake affordability and credit checks to confirm your eligibility.
There are drawbacks to porting your mortgage – especially if you are moving to a larger value property. If you are keen to retain your existing mortgage, then please talk to one of our mortgage brokers. We can look in depth to see what your options are, and help you decide if porting is the right solution for you.
You can remortgage with your existing lender
If you are looking for a home mover mortgage, you may wish to talk to your existing lender about remortgaging your current deal. This can help you benefit from better interest rates, change from tracker/ variable to a fixed-term agreement (and vice versa), and change your loan-to-value ratio or your mortgage term length.
You may need to consider if there are any fees payable. If you’re in the midst of a fixed-term contract, you may be asked to pay exit fees. However, if you are close to the end of your fixed term, it may be cheaper to pay the exit fees and move to a more affordable deal.
Our expertise lies in working out what is the most affordable, and cost-effective option for you. We can do the calculations on your behalf, and help identify what the available options are, and how much it could cost you.
Remortgage with a new lender
There is nothing to say that you have to stay with the same mortgage lender for the duration of your mortgage term. You could arrange a new mortgage with an alternative lender when you are moving house. They may be able to offer you a better interest rate or lower arrangement fees. They could even have a wide range of incentives taking place to help you make the switch. However, like remortgaging with your existing lender, you may need to consider any exit fees or arrangement fees that could apply.
At Mortgagemove, we have access to a variety of deals available with lender throughout the UK and are focussed on finding the right deal for you.
Taking out different home mover mortgage amounts
It is almost certain that your house mover mortgage will be a different value to what you initially started with when moving home.
If your home has risen in value and you have made capital repayments, this means you will have more equity in your home. This equity will be used as the deposit for your new home. Your increased equity may change the loan the value ratio of your new mortgage. This means that potentially, you could move to a bigger house with a larger mortgage, with minimal impact on your monthly outgoings.
Similarly, if you are looking to downsize to a smaller property, you will inevitably find that your new mortgage payments will be considerably smaller. If your home has increased in value, or you have more equity in the property, you can either take out a smaller mortgage or reduce the overall length of repayments. If your home has significantly increased in value or you are looking to move to a much smaller property, you may find that you have enough equity in your home that you do not need to take out any new mortgage at all!
Our mortgage advisers will help you to see what impact changing your mortgage amount may have on your monthly outgoings. We will only ever recommend solutions that are affordable to you.
Talk to us if you’re thinking of moving home
At Mortgagemove, we can help you to identify if it is the best time to move home. For example, you may find that if you only have a few months left on your current deal, it may be financially prudent to wait a bit longer before moving. This is because if you come to the end of your agreement and switch to an SVR, it will be unlikely that you will have to pay any exit fees. This could make moving house much more affordable.
Our customers choose to contact us not just because we can find them a great mortgage rate but because they trust that we can offer advice on a variety of different issues. We can look at the bigger picture and talk to you about your life plans. We can explain how changing circumstances could impact your affordability and how different mortgage terms and loan values can impact your monthly expenditure.
To find out how the Mortgagemove team can help you, please call our freephone mortgage advice line on 0333 005 0333. In just a 15-minute discovery call, we can evaluate your financial circumstances and help you to find the right home mover mortgage for your needs. Alternatively, please text ADVICE to 82228.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Approved by the Openwork Partnership – 30/01/2023
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