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, with varying valuation fees, product fees and interest rates.
It’s easy to get lost in the sea of home mover mortgages available, which is why it is valuable to work with an independent, professional mortgage broker like The Mortgage Pod.
Our aim is to make the home mover 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 naturally 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!
To begin a consultation, please drop us a line, and we’ll be in touch soon.
What is a home mover mortgage?
Home mover mortgages aren’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.
What is the process of getting a home mover mortgage?
Hopefully, you’re feeling more assured than when you took out a first-time buyer mortgage, but it’s important not to underestimate the work involved in getting a home movers mortgage.
Moving home can be stressful enough, so it pays to get organised well in advance.
Think about the following before making any big commitments:
- Understand your mortgage options – It’s never too early to chat with a knowledgeable mortgage broker about the choices available to you. We will assess your personal circumstances, advise you on the maximum mortgage available and take care of your agreement in principle. That way, you can budget effectively, be realistic, and target your search within the right range of house prices.
- The costs and fees involved in moving house – Many home movers are surprised to find that it costs more to move house than it does to buy your first home. So budgeting is super important to get right. Budget for estate agent fees, legal fees on both your sale and your purchase, stamp duty (depending on the onward purchase price) and removal/storage costs. All in addition to the costs of getting a mortgage, of course.
- Conveyancing – There will be legal work on both your sale and your purchase, so choose wisely. Most mortgage brokers can recommend a reliable and trusted conveyancer.
How much can I borrow as a home mover?
The exact loan amount available to you depends on your individual circumstances, such as your income, outgoings, and the size of the deposit you have, whether that be your own money or equity.
As a general rule, lenders typically offer between four and five times your income, but this can vary, and some lenders may consider offering up to six times your income for certain professions.
The size of your deposit can impact how much you can borrow on your new mortgage. So it is worth getting multiple estate agency valuations to give you a better idea of your equity.
As lenders’ criteria and affordability models vary significantly, it’s best to speak to a professional mortgage adviser, like our friendly team here at The Mortgage Pod.
What does ‘porting’ a mortgage mean?
Porting your mortgage is the process of transferring your existing mortgage to a new property when you move home. Your mortgage stays with the same lender, with the same interest rate, balance, product expiry date, and mortgage repayments. Although, you may be able to amend the mortgage term.
It may also be possible to increase your borrowing amount above your existing balance. This is known as a top-up. The top-up product will not be the same as the ported product and is likely to have a different product expiry date.
It’s also worth noting that not all mortgages are portable, so we always recommend checking early in the process and never assume yours is.
Advantages of porting mortgages include:
Simplicity: As you remain with your current lender, there is no need to apply for a new loan from scratch. With most lenders, it’s a straightforward mortgage application process.
A good deal: If mortgage rates have increased since you took out your current mortgage, then when you come to move, you could find your current deal is cheaper than others on the market.
No early repayment charge: If you don’t redeem your existing mortgage (i.e. repay the outstanding balance), no early repayment charge or exit fees should be payable.
Disadvantages of porting mortgages include:
Restrictions: You will be restricted to what deals your current lender is offering, so you may miss out on better deals elsewhere if you need a top-up.
Administration: If you have topped up your ported mortgage with an additional loan, then the dates of each loan may not match up, which can prove a headache. You may spend years trying to get the dates of each product to realign.
Subject to criteria: Porting is always subject to your lender’s criteria and will depend on your circumstances at the time. So never assume you will be automatically approved.
Speaking to a professional mortgage broker, such as the team at The Mortgage Pod, will help you establish whether porting is the right deal for you.
Home Mover Mortgage
How can The Mortgage Pod help me as a home mover?
Firstly, and most importantly, remember that we are here to help you with so much more than just your mortgage. We like to think you’ll consider us your key contact through 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 a mortgage deal that suits you to a tee.
- Calculate the costs of moving home – Yep, there are quite a few of these but fear not. We prepare an itemised list of property costs, charges, expenses and fees. That includes valuation fees, stamp duty, and estate agent selling fees, for example. We believe having just one figure to deal with is much less overwhelming, so we’ll aim to make this super straightforward. We’ll also tell you if you need to find the money to pay for costs or if you have enough equity to cover it.
- Help you budget – We’ll work out how much can you borrow and what your monthly repayments might be. We’ll only ever recommend mortgages with manageable monthly repayments.
- Give tips on the property search! – We even love getting involved in finding your dream home and can offer some great hacks based on our many years of experience.
Contact us today to speak to one of our friendly team and get started.
FAQs
Will I incur early repayment charges when using a home mover mortgage?
If you redeem your current mortgage deal with your existing lender, for example, on a fixed-rate deal, then you may be liable for an early repayment charge. As your independent mortgage adviser, we will always make our assessment based on your financial circumstances and recommend the right mortgage deal for you.
Are all mortgages portable?
Porting isn’t always an option. If you are unable to port your current mortgage, then you may need to pay early repayment charges and secure a new deal with a new lender.
How does the equity in my home affect my options as a home mover?
The equity in your home, i.e. the difference in price between its current value and your outstanding mortgage balance, has a significant impact on your options.
When you sell your current home, the equity can be used as a deposit for your new property. So, the more equity you have, the greater the deposit you have for your new place. This often means you can take advantage of lower interest rates and have higher borrowing capacity.
