Moving Home Mortgage
As stressful as it is exciting, moving home can be a life-changing decision. Regardless of why you’re doing it, having the right mortgage can make or break the process. Choosing a mortgage often doesn’t get much easier the second time around. In fact, you have selling your home on top of that to contend with. But let’s take a look at some of the options and what you need to think about.
How To Get A Mortgage When Moving House
When moving home, unless you’re paying for it directly with the money made from selling the old home, you’re going to need to find a mortgage. Here are a few ways you can do that.
Porting: The majority of mortgages available nowadays are portable. This means they can be moved to a new property. You still have to apply for them and may need to extend the mortgage with a second loan. It will also require an additional arrangement fee. While more convenient than the other options, it’s important to ensure you’re not being stung by unexpected costs.
Remortgaging with existing lender: You can replace your existing mortgage with a new one from the same lender you’re using currently. This can see you reducing your rates significantly, especially if you have never had any trouble with your past loan. However, there may be new arrangement fees as well as a closing fee of up to 5% for the old mortgage. The closer you are to the end of your current mortgage, the lower this charge is.
Remortgaging with a new lender: A remortgage from another lender can be used to pay off the old mortgage. It’s always important to look at what other lenders are offering and to compare them with what your current provider has. Otherwise, it’s easy to choose a worse deal by default.
Cutting The Costs Of Your Mortgage
If you’re on a fixed rate deal, waiting for the term of your current mortgage to end can help you avoid early repayment charges. However, you might have to pay increased standard variable rates for a time. This depends on how soon you want to move and how long you have left on your term, of course.
Porting your old mortgage over to a home of similar value is the easiest way to get a better deal on the loan. The fees are usually lower and there’s no additional loan to cover the higher cost of the home. Either way, compare the savings each mortgage offers compared to their likely costs and fees to see what the best deal is.
Finding The Best Deal
Simply put, with the hassle of selling a home alongside the task of searching the market for a mortgage, it can be more difficult to move home than you think. Looking for the services of an independent mortgage adviser or financial services provider can come in to help. They can take a closer look at your financial situation, the market as it stands, and help you find the best mortgage suited to you specifically.