Are you thinking of moving home? Maybe it’s time to upgrade your existing home or start a family. Seeking a moving home mortgage? Whatever your reason, Bespoke Home Finance is an expert mortgage advisor and can make the process easier for you.
Moving home can be extremely exciting but stressful at the same time. Simply put, it is a life-changing decision, and it’s important to get the right mortgage.
If you’re planning on moving home and already have a mortgage for your current home, the following needs to be considered:
Does the mortgage deal have early redemption penalties? (a penalty fee you may have to pay if you choose to leave a mortgage during the agreed period of the deal)
Is the current mortgage portable?
Will additional borrowed funds be needed to buy the new home?
Is the current rate better than any new rates that can be obtained in the open market?
Will any penalties apply if I move home whilst I have a mortgage?
At Bespoke Home Finance, I’m more than happy to provide you with all the answers to the above questions as well as more information you may need during your mortgage appointment.
Even though you’ve already gone through the lengthy process of getting a mortgage for your first-ever home, for most buyers, it doesn’t necessarily mean that getting a mortgage the second time around will be easier.
That is why I am here to help make the full mortgage application process easier. This is a great opportunity to review your arrangements so I can find the perfect mortgage deal for you.
If you currently have a mortgage on a house and are planning on moving home but are wondering what happens to your current mortgage and whether you can keep it, I have the answers for you. Your mortgage is secured on your current existing property. When you move to a new property, your legal representative should pay off your mortgage for that existing house in full.
If you’re planning on moving home and buying that property, you need to start a new moving home mortgage, which may increase or decrease your monthly payment.
If you’re thinking about switching lenders, there are a few things you will need to consider first. Is your current mortgage deal portable? This means you can transfer your current mortgage deal to your new property, allowing you to avoid early repayment charges while keeping your current rate and lender.
If it isn’t portable or there is a possibility of better terms, then switching lenders may be the perfect option. However, you do have to consider that there may be early repayment charges attached to this choice.
There are quite a few costs associated with a moving house mortgage process. Costs that you have to account for include the following fees.
Lenders require a mortgage valuation to confirm the property’s value and suitability as security for the loan. For more detailed insights, you can arrange additional surveys to assess the property’s structure or potential future repair needs.
Your conveyancer or solicitor handles the legal paperwork for your property purchase. Check their fees upfront, or let us assist you in finding a conveyancer.
The Land Registry Fee is a mandatory charge for registering the ownership of a property or land with the government. It ensures the new owner’s details are recorded and the title is updated after a property transaction.
The cost depends on the property price and how the application is submitted, with online applications typically being cheaper than paper submissions. This fee is usually handled by your solicitor or conveyancer as part of the buying process.
Stamp Duty is a tax you pay when purchasing property or land over a specific value in the UK. Use a Stamp Duty calculator to estimate your costs.
Lenders require building insurance for your new property. You may also want content insurance to cover your belongings.
If you’re hiring a removal company, include this in your budget.
If you’re porting your mortgage and increasing your borrowing, your lender may charge a product fee.
Depending on your agreement with your estate agent, they will receive a percentage of the sale of the house.
This fee covers the lender’s administrative costs for setting up your mortgage. It can either be a flat rate or a percentage of the loan amount.
A booking fee is paid upfront to reserve your mortgage rate while your application is processed. By understanding these costs, you can better plan your budget for moving house.
The current value of your property can greatly affect your mortgage options. Personal circumstances can also have an effect on how much you could borrow. Do not worry, however, as I am here to help you with expert advice on moving home mortgages.
If you are choosing to move to a larger and more valuable house than the one you currently have, you will need to prove that you can afford the higher rates.
You will have a higher chance of obtaining a moving home mortgage if your current house has risen in value since you purchased it.
You also have a higher chance if you show your lender that your wages have increased or your outgoings have decreased, thus reassuring them that you can make the necessary monthly repayments comfortably.
If you have had any issues in the past with meeting your monthly repayments, there is a chance that it could affect your ability to secure an offer.
If you are choosing to move to a smaller and cheaper house than your current one, the size of your loan and monthly repayments will decrease, thus making it easier to secure a moving home mortgage.
You might also be able to buy a new home outright if the valuation or purchase price of your current home has increased and the difference between the two properties is wide enough.
If your current home has decreased in value since you purchased it, then it is in negative equity. Unfortunately, this makes it more difficult for you to secure a moving home mortgage. However, some lenders may offer you a moving home mortgage if the move is vital.
At Bespoke Home Finance, we take great pride in our work. Knowing I have taken every consideration into detail when searching for the new mortgage, I know that you will be more than happy with the outcome. You will always be provided with honest and transparent information to assist you in finding the most suitable mortgage deal.
The mortgage completion process can be exhausting, especially trying to get a moving house mortgage over the line. Staying informed is vital to ensure you understand the legal process involved. Read on for answers to some frequently asked questions.
No, you do not. Depending on the details in your mortgage deed, you may be able to move your deal over to your new property. Just be sure that this is a worthwhile task, as there might be better terms for you with a new mortgage, like a lower initial interest rate.
Yes, you can take your mortgage with you when you move. In the case of moving mortgage when relocating to another house, it can be beneficial if your new home’s purchase price is the same as your current home or cheaper. If this is the case, it might make more sense to try to keep your current deal, as your monthly payments will not change.
That being said, not every mortgage can be moved. It depends on the binding legal agreement between you and your lender. The costs involved may also make applying for a new mortgage the better option.
A mortgage calculator gives you the ability to estimate your monthly mortgage repayments. Your monthly payments will be dependent on factors such as your credit rating, house prices, and current financial commitments. Loan amounts and interest rates will also be a determining factor in your mortgage calculation and repayments.
The value of your home dropping is a common problem that many face. This does make securing a new mortgage difficult. However, there are lenders who may still offer you a mortgage when moving house.
Another common challenge is dealing with buying and selling a house at the same time, as it can be incredibly stressful. Call the office to ensure a stress-free time. Compare mortgage options and find out what your interest rate and monthly payments could be with Bespoke Home Finance mortgage and protection advisers.
An agreement, in principle, gives an estimate as to how much you could borrow before you have chosen a property. You provide basic information to your lender so they can run a credit search. Once that is complete and you meet the criteria, you will receive a certificate to show sellers of the property that you are able to meet the purchase price.
Be aware that this is not a guarantee, and a full mortgage offer will only be issued after a complete application, property valuation, and detailed checks that outline the terms of your loan.
If you are looking for trustworthy and professional expert advice to guide you every step of the way, then look no further than Bespoke Home Finance.
Furthermore, if you are looking for mortgage options to move home or even buy your first, I am here to help. Call me today on 0330 111 2477 or fill in the contact form below. I look forward to hearing from you and remember, there is no obligation or high-pressure tactics.
Based in Scotland, I offer my mortgage advice services in Edinburgh, Glasgow, Scotland and all across the UK too!
Contact us today for moving home mortgage advice at 0330 111 2477.
