Moving Home Top Tips
Looking to move? Need quality advice and someone who can make the process smoother? Want to find the best mortgage rates on the market? Get in touch with us to see how we can help you with:
How much does it all cost and what fees are involved?
How much could you borrow?
What types of properties are available to you?
What you will need when applying for a mortgage?
If there is a minimum or maximum purchase price with other brokers?
If there are any risks you should be aware of?
What insurance will you need?
What mortgage rates are available?
What happens if you want to move home in the middle of your mortgage deal?
Could you port your current Mortgage deal over to your new one?
What happens at the end of my mortgage deal?
What to consider
Here are some things you need to arrange whilst applying for your mortgage. As you will be aware, Mortgage terms can last anything up to 40 yrs, so getting advice on these matters from a qualified advisor is priceless.
Methods of repayment
There are three different methods of mortgage repayment. These are repayment, interest-only, and a combination of repayment and interest-only.
With some lenders offering up to a 40-year term, this length will affect your monthly repayments. It is important to remember the longer the term the more interest you will pay.
This means you are only paying the interest off the loan, term length makes no difference to monthly repayments. These are not as easily available in the residential market but are very common in the Buy-To-Let market.
Available Mortgage products
There are a range of mortgage products out there to suit individual needs. Rates change regularly and an advisor can find the best current rate for you.
We will ask you about your desires, needs and details of your current circumstances before deciding which mortgage product to propose for you.
Many mortgages are 'portable' which means you may be able to transfer your current mortgage product to a new property if you are moving home. One of the main reasons you may want to do this may be that you still have an early repayment penalty payable to your current lender if you were to redeem your current mortgage.
There is a myth that because you have an existing mortgage with a lender that they are duty bound to transfer your mortgage to your new property. As we say this is a myth because you will still need to apply to your lender to Port.
When you apply to your lender to 'Port' your mortgage you may be told that you do not qualify, the reason can be varied but typical examples are as follows:-
Your circumstances have changed, for instance, you may now be self-employed
Your earning may have changed and therefore you may not be able to meet your lenders affordability criteria
Your credit status may have changed e.g you now have a lower credit score or you now have a default or county court judgment.
You now have more debts and increased balances on your credits or store cards or you may have taken out a personal loan.
You may not have made all of your monthly mortgage payments on time with your current lender.
If any of the above applies to you there may be a chance that your lender will not permit you to port your mortgage to your new home.
If you are moving and you need to borrow more to facilitate the move, you may find that your current lenders affordability calculations suggest the new additional amount of borrowing is beyond your personal level of affordability.
It's not uncommon to find that although your own personal circumstances may not have changed, the lenders own lending criteria may have. Whilst they offered you a mortgage when you first bought your current home it does not necessarily mean that they will lend to you again or offer to port your mortgage.
If you are moving to a new home and porting your existing mortgage but you need to borrow more money to facilitate the move, any new lending will need to be set up on a new mortgage product and will typically be at the current interest rates that are available now. This additional borrowing may also come with a lender arrangement fee, product fee etc. Therefore if you do need to borrow more money you could end up with two loans
If you are looking at moving home or you require additional finance but are unable to remortgage please get in touch with us today. We can provide you with expert advice and find the right deal for you.