Moving home? Perhaps it is to accommodate your growing brood, downsize, relocate for work, or simply for a fresh start. You may even be looking to rent your current property after you move. Just as there are many different reasons for moving on, there are many different home mover mortgages.
At The Mortgage Pod, our aim is to make the mortgage process easier, simpler, and more affordable so you can throw your efforts into house-hunting and the big move.
We are The Mortgage Pod, mortgage brokers for home movers
The Mortgage Pod is your trusted local mortgage broker in Portsmouth. We’re here to support you on your home-moving journey and guide you through the entire mortgage process. Moving home can be a stressful time, but our mission is to take the hassle out of securing a mortgage so you have one less thing to worry about.
We will help you understand how much you can borrow, what your monthly payments might look like, and take care of your agreement in principle for your new deal. Our friendly team will be on the other end of a WhatsApp chat for the duration to answer your questions. Most importantly, our job is to find the best mortgage rates available for your financial situation and to help you save money in the long term.
The Mortgage Pod is here to help you compare lenders and find the best deal available to you. We’ll even be there to celebrate with you when your mortgage offer is accepted and when you get your hands on your new keys!
Click here to get started with The Mortgage Pod today.
What mortgage options are there for home movers?
When it comes to financing your new home, you have a number of options, including:
Home mover mortgage
A home mover mortgage isn’t that different to standard home mortgages, although the products and options are designed for those who have an existing home or have previously owned one. They are available for all sorts of residences, including flats and houses.
It involves paying off (or redeeming) your current mortgage and applying for a new loan, often with a new lender. This gives you the chance to find a fresh deal that better suits your circumstances and budget, helping you along the property ladder.
Porting your current mortgage
You might choose to port your mortgage, which means transferring the mortgage on your existing property to a new property. That way, you keep the same lender, the same interest rate and the same terms and conditions.
Find out more about porting your mortgage
Let-to-buy
Let-to-buy mortgages allow you to move home without selling your current home. It works by borrowing against the equity in the property to buy a new one. You then rent the first property which can help to fund your new mortgage payments. This is ideal for homeowners with a lot of equity in their property.
Find out more about let-to-buy mortgages
What is the process of getting a home mover mortgage?
The process of getting a home mover’s mortgage is relatively straightforward. Here’s a glimpse of what it entails
Mortgage completion process
Contracts are then exchanged for the sale and the purchase. On the completion date, you’ll get your new keys, and the big move will be officially underway!
Check your current mortgage balance
Check if your current mortgage lender will allow you to port your mortgage. If you would prefer to find a new deal, find out if there are early repayment charges or fees if you choose to switch lenders or mortgage products.
Talk to a mortgage broker
A mortgage broker can make an initial assessment of your circumstances and give you advice on how much you can borrow. That way, you can make a realistic budget and target your search within the right range of house prices. You can get started with our team here.
Consider your finances
Find out how much equity you have in your current property (the difference between its value and your outstanding mortgage) and work out your budget for mortgage payments on a new home. Use our mortgage calculator to work out what you may be able to afford.
Budget for the costs of moving home
Many home movers are surprised to find that it costs more to move than it does to buy your first home. As well as mortgage arrangement fees, budget for estate agents fees, valuation fees, legal fees on both your sale and your purchase, stamp duty (depending on the purchase price of your new place) and removal costs.
Lender assessment, credit check and agreement in principle
Now that it’s time to start house hunting you will want an agreement in principle. Your mortgage broker will assess your circumstances, make a suitable mortgage recommendation and aim to provide you with an agreement in principle. This is a credit check and confirmation of what you should be able to borrow. It’s a good idea to check your credit report in advance.
Sell your home and start house hunting
Great! You have an idea of what you can borrow so the next step is to get a valuation from a local trusted estate agent, our team can help to make a suitable recommendation. Then its time to put your home on the market and start house hunting.
Find a house and apply for a mortgage
This is the exciting step! You’ve sold your current property, found your dream home and are ready to apply for the mortgage. Your mortgage adviser will then submit the full mortgage application pon your behalf.
Mortgage approval and Conveyancing
Once your mortgage is agreed the lender will issue a formal mortgage offer and you can begin the legal process with your chosen conveyancer or solicitor – we can make a recommendation of a trusted, reliable conveyancer. They will take care of all legal aspects of purchasing a property including the mortgage deed. This is a good time to complete a more comprehensive survey if you have chosen to do so, you can get a quote for this here.
Home Mover Mortgage
May 2023
How much can I borrow as a home mover?
The maximum loan amount you are offered depends on your individual circumstances, such as your income, financial commitments, your deposit size and the equity in your property. As a general rule, lenders typically offer between four and five times your income, sometimes six, but this can vary. To get a more accurate idea why not try our affordability calculator here.
How can The Mortgage Pod help me as a home mover?
The Mortgage Pod is here to help you with so much more than just your mortgage. We hope you will consider us your key contact throughout your home moving journey.
We are here to:
Make things easier – Relax; you have enough on your plate when moving home. We’re here to make everything smoother and simpler to understand.
Understand your needs – We’ll take the time to get to know you, your reasons for moving house and what your future goals are. That way, we can look for the right mortgage that will suit you to a tee.
Calculate the costs of moving home – We’ll make this super straightforward by creating an itemised list of costs – having just one figure to deal with is much less overwhelming. We’ll also let you know if you can cover the costs with your equity.
Carry out a mortgage calculation – We’ll work out how much you can borrow and what your monthly repayments might be. We’ll only ever recommend mortgages with manageable monthly mortgage repayments. To get an idea of what you could borrow, try our mortgage calculator.
Give tips on the property search – We even love getting involved in finding your dream home and can share some great insights based on our many years of experience.
Find the right protection – We are your mortgage as well as your protection advisers. We will source the right protection for you and your family. Including life insurance, income protection, critical illness cover and buildings insurance to ensure you and your home are safeguarded.
Contact us today to speak to one of our friendly team and get started.
Frequently asked questions about home mover mortgages
Will I incur early repayment charges when using a home mover mortgage?
If you pay off your current mortgage deal before it expires, then you may be liable for an early repayment charge with your current lender, so check well in advance.
How does the equity in my home affect my options as a home mover?
When you sell your current home, the equity can be used as a deposit for your new property. Generally, the more equity you have, the better your borrowing power and the lower the interest rates.
You may also have sufficient equity to keep your current property, using it to raise a deposit for another. This is known as a let-to-buy mortgage.
Is a home mover mortgage a completely new mortgage deal?
A home mover’s mortgage is a completely new mortgage. It involves redeeming your existing mortgage when selling your current home and applying for a new mortgage on a different property. This allows you to explore new deals and potentially switch lenders. An alternative to a new mortgage deal would be to port your current mortgage.
What type of mortgage deal can home movers get?
When you move home, you can choose from various mortgage deals, including a fixed-rate or variable-rate mortgage. You can also choose between a repayment mortgage- where both the loan and interest are repaid, or an interest-only mortgage- where only the interest is paid monthly and not the loan, with the balance due at the end of the mortgage term.
