Home Mover Mortgages
What do we mean by Home Mover Mortgages?
A ‘Home Move Mortgage’ is where the current homeowner looks into selling their current property to upsize. This would be a ‘Home Mover Mortgage’ as you’re selling your main property and buying a new main property.
What moving costs need to be considered?
There are many costs associated with moving that you need to consider. A deposit for the onward purchase is key if you’re selling your main residence plus fees for your estate agent. Solicitor costs for the work they undertake in the background and even a brokerage fee if you use our services for example. Smaller fees such as removals also have to be factored in, this can be anything from using a specialist company to hiring a van.
How much can I borrow?
There’s never a simple answer to this question, so it’s always worth speaking to a mortgage broker at the earliest opportunity to understand how much you can borrow based on your circumstances. As a broker, we can look at the ‘Whole of Market’ to maximise your borrowing potential.
But, how much you can borrow will depend on your loan to value which is determined by your income, credit score, affordability and your profession too. It’s always advisable to disclose how much you earn per year plus anything additional such as overtime or bonus’ as this can increase your LTA value.
What is Porting?
If you originally took out a 5 year fixed mortgage and you’re currently 2 years into this but you want to move home, you can usually port over your existing mortgage to your new property and continue to pay your mortgage at that property with your current interest rate. You can also increase the amount on your mortgage to sit beside your current mortgage if the property you’re purchasing is valued and bought for more than your current property.
However, not all mortgages can be ported over so it is worth checking with your current lender if you can do this. If they are not, then you can be liable for an early repayment charge to pay off your mortgage early.
Speak To An Expert
We help customers navigate the options available to them through clear information and guidance, this in turn enables them to understand their choices and make informed decisions.
Can I increase the mortgage value when I port?
Yes, you can increase the amount you owe by taking out a new mortgage that sits beside your existing mortgage. This may be at a different rate as it is separate, but your lender will be able to present you with the best options for this.
Can I port my mortgage if the new home is cheaper?
Yes, however, your current lender will adjust the LTV to match your mortgage duration and the amount remaining.
How do I decide whether to port or get a new mortgage?
It will all depend on the rate that the original mortgage was taken out. If rates have drastically changed and reduced then it may be cheaper to pay the early repayment charge than porting. Like with a new mortgage, it’s what works out the cheapest over the fixed and mortgage length when it comes to applying the product fee. As a broker, we work with clients daily and we can advise what is the best option for them.
Is porting a mortgage worth it?
Absolutely! You can save a good portion of money throughout your mortgage by porting, particularly with the climate we’re in now with rising bills. Saving money on a mortgage per month is worth doing if you’re in a position to do so.
How does the equity in my home affect my options?
Equity can change your options massively. You may market your house for a certain figure but receive and accept either a higher or lower figure. The equity would be the difference between your remaining mortgage value and what you sold your property for. You can, of course, be in negative equity where the value of your property is much lower than what is remaining on your mortgage.
How is moving homes affected by Upsizing/Downsizing/Negative Equity?
Moving home can affect your equity more so if you’re upsizing or downsizing. At the moment, most people do not want the headache of renovating an existing property, they are happy to purchase a brand new build that no one has lived in before.
New builds can affect your equity as the purchase price is normally more than the value of the house due to it being a new build, so at least for the first few years you potentially could be in negative equity. The opposite is said for the older houses that may need a small or large amount of renovation, these houses generally will have a good amount of equity in them once the work is completed.
Your property may be repossessed if you do not keep up with your mortgage repayments.