Home Mover Mortgages

As homeowners contemplating moving home, you might be intrigued by the concept of a home mover mortgage. This guide will delve into the intricacies of home mover mortgages, shedding light on the associated costs, your borrowing potential, the principle of porting, and how the equity in your home influences your options. Furthermore, we’ll illustrate how a mortgage broker like MortgageTek can streamline your journey through this complex process.

What are Home Mover Mortgages?

A home mover mortgage is tailored for homeowners who are ready to transition from their current residence to a new abode. This process generally entails selling your existing property and applying the proceeds towards acquiring a new one. Occasionally, the sale and acquisition can be synchronized, facilitating a smooth shift from your old home to your new sanctuary.

It’s crucial to acknowledge that the terms and conditions of home mover mortgages can differ based on individual circumstances and lender requirements. Hence, obtaining mortgage advice is recommended to ensure you select a mortgage product that aligns with your needs.

Costs to Consider

Embarking on your home-moving journey, it’s essential to be cognizant of the various moving costs that you may encounter. Here are some typical expenses to keep in mind:

  1. The Deposit: The amount you’ll need to put down as a deposit can vary depending on your situation. It typically ranges from a minimum of 5% to as much as 90% of the property’s value. A higher deposit often leads to more competitive mortgage rates and lower monthly payments.
  2. Estate Agent Fees: If you’re selling your property through an agent, you’ll need to account for their fees. These fees can vary depending on location and the type of service you choose. It’s advisable to obtain multiple quotes and compare services to ensure you’re getting the best value.
  3. Legal Costs: Engaging a solicitor is an essential part of the home-moving process. The fees for their services can vary, so it’s wise to compare the costs and services offered. If you need recommendations, MortgageTek can provide you with a panel of trusted conveyancers.
  4. Removal Services: Depending on the amount of belongings you have, you may need to hire a van or a full removal team. The cost of these services can vary based on your requirements. MortgageTek has partnered with Just Move In to help you find suitable providers and alleviate the stress of moving.
  5. Storage: If there is a gap between selling your current property and moving into the new one, you may need to store your belongings. Storage costs can vary based on the duration and amount of items to be stored.

How Much Can I Borrow as a Home Mover?

The borrowing capacity for a home mover is contingent on multiple elements, such as your income and the property value and type of the home you’re aiming to buy. Engaging with a professional mortgage broker like MortgageTek is vital to accurately gauge your borrowing power, as they possess comprehensive market insights and can evaluate lenders’ lending propensity in relation to your situation.

While some individuals are intent on borrowing the maximum amount to secure a larger property, others exercise budgeting prudence by adhering to a specific financial plan. A mortgage broker can offer invaluable guidance in balancing these aspirations and provide advice that’s customized to your financial landscape.

Understanding Porting

Porting mortgage refers to transferring your current mortgage to a new property. If porting your mortgage is on your radar, you’ll be pleased to know that your existing loan terms can be maintained, provided the loan amount meets the lender’s criteria. For instance, if you’re in the midst of a five-year fixed-rate deal with three years left, you can port those terms to your next property seamlessly.

It’s important to note that porting mortgage has both advantages and disadvantages. For instance, if you’re upsizing and need to borrow more money, the lender may be willing to accommodate this request. However, if you’re porting your mortgage to a more expensive property, you may require an additional loan known as a top-up loan or further advance. It’s crucial to consult with a professional mortgage adviser to assess the suitability of porting in your specific circumstances.

Increasing the Mortgage Value when Porting

If you need to borrow more money than your existing mortgage balance when porting, you will need to apply for additional borrowing. The lender will assess your application to ensure the increased loan amount is affordable based on their lenders’ criteria. This process is commonly referred to as additional borrowing and allows you to access the funds you need to purchase your new property.

Porting to a Cheaper Property

Porting your mortgage to a cheaper property is indeed possible. In such cases, you can generally keep the same terms and conditions for the loan amount required based on the property’s value and your needs. However, you may need to pay an early repayment charge for the amount you no longer require, effectively overpaying your mortgage.

Deciding Between Porting and Getting a New Mortgage

Determining whether to port your mortgage or obtain a new mortgage depends on various factors unique to your situation. A professional mortgage adviser can help you weigh the pros and cons of each option. Porting may allow you to maintain a favourable interest rate, but it might limit your borrowing capacity. On the other hand, securing a new mortgage could result in lower monthly payments with a different lender. Ultimately, the decision should align with your individual circumstances, available mortgage products, and early repayment charges. Seeking advice from a mortgage adviser is crucial to making an informed choice.

The Role of Equity in Your Home

Equity refers to the difference between the value of your property and your mortgage balance. This equity can be utilized as a deposit for your new home, while the remaining balance can be covered by a mortgage. If applicable, you can also use the equity to pay for stamp duty, effectively reducing the upfront costs associated with purchasing a new property. However, using your equity for other purposes may impact the size of your deposit and borrowing capacity. Consider consulting with a mortgage broker to explore the best options for utilizing your home equity.

How a Mortgage Broker Can Assist Home Movers

Navigating the complexities of home mover mortgages can be overwhelming, which is why enlisting the help of a professional mortgage broker like MortgageTek can be invaluable. Mortgage brokers have the expertise to guide you through the process and provide personalized advice based on your unique circumstances.

A mortgage broker can recommend the most suitable mortgage product for your needs, ensuring that the monthly payments are affordable and within your budget. Additionally, they can connect you with trusted solicitors and other professionals who may be required throughout the home-moving journey. By working with a mortgage broker, you can benefit from their experience and network, saving you time, effort, and potential stress.

MortgageTek also provides a suite of moving services designed to streamline your transition. In collaboration with Just Move In, they offer assistance with tasks such as switching utility providers, coordinating removals, and updating your essential services. This support is tailored to mitigate the stress of moving home, enabling you to concentrate on comfortably settling into your new residence.

In conclusion, when you’re gearing up to relocate, home mover mortgages are crafted to ensure a seamless shift to your new property. It’s important to account for the various expenses involved, gauge your borrowing capacity, and consider the possibility of transferring your existing mortgage. Engaging a mortgage broker like MortgageTek can offer crucial insights throughout your moving home journey, helping you to make well-informed choices and secure the most suitable mortgage product for your situation. With their professional advice, the intricacies of home mover mortgages become more navigable, granting you peace of mind and simplicity.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Speak to a MortgageTek Adviser today to discuss your home mover mortgage options.

Frequently Asked Questions

How much can I borrow?
To determine your borrowing potential and eligibility, call us today on 020 3827 8558.

How long does the mortgage process take?
Typically, the mortgage process spans from 2 to 6 weeks to culminate in approval. Once issued, a mortgage offer is generally valid for a period of 6 months, allowing you ample time to finalize your home purchase.

Should I get a coveragelife or critical illness cover?
While life cover is not mandatory when getting a mortgage, it is important to ensure your mortgage remains affordable, regardless of any unforeseen circumstances. We can advise you on the available options and provide a no-obligation quote from our partner providers.

Do I need a solicitor?
Depending on your specific needs during the home-moving process, you may find the services of a solicitor indispensable. Your mortgage adviser will explore this necessity with you and is equipped to recommend reliable solicitors to ensure a smooth progression with your property transaction.

Useful Links

Why Choose MortgageTek?

Choosing MortgageTek for your home mover mortgage needs offers numerous benefits:

  • Independent, whole-of-market advice
  • Mortgage agreements in principle in as little as two hours
  • Access to competitive mortgage products
  • Free initial consultation
  • We are a Climate Positive Workforce