What happens to your mortgage when you move home?
While moving home can be one of the busiest and most stressful times in your life, sorting out your mortgage doesn’t have to be. In fact, mortgages can be pretty straightforward when moving home, whether you take your current mortgage with you to your new property or decide to remortgage.
If you have decided to move, speaking to a mortgage adviser is one of the best ways to help you with your situation. An adviser will look at your individual circumstances and recommend the right option for you to take. However, if you’re looking for a basic understanding of the options out there then read on.
Portable mortgage – keep your current deal
If your current mortgage has a lower rate than existing deals, you may want to consider a porting your mortgage.
Although one of the simpler options, deciding whether or not to port your mortgage will depend on a few factors. For example, the time remaining on your current mortgage deal, your affordability when porting, if you’re porting your mortgage to a more expensive property or if you’re tied into your current deal with early repayment charges. Ultimately, the deciding factor will be whether it’s financially the right option for you.
Remortgage – get a new mortgage deal
Alternatively, if you’re moving home, this could be a great opportunity for you to look around for a better mortgage deal. Many homeowners look at remortgaging when moving house, to get a lower interest rate.
However, it is important before you consider remortgaging to check any penalties or additional fees that may occur, such as arrangement fees and exit fees. Many lenders charge exit fees when you leave your existing deal and charge an arrangement fee for your new mortgage. So it may be worth considering if it is in actual fact financially the better option for you.
It’s also important to consider your current circumstances and whether these have changed since you took out your original mortgage. Like any remortgage, you will be assessed and credit checked by lenders, to make sure you meet their criteria and with stricter criteria, you may be better sticking with your current mortgage and transporting it to your new property.
If you’d like to get in touch with our expert mortgage advisers to discuss your remortgage options, please don’t hesitate. We offer flexible appointments to fit around your schedule to help make things as easy as possible for you.
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A fee of up to 1.5% of the mortgage amount may be charged depending on individual circumstances. A typical fee is 0.67%.