Home Mover Mortgage Advice.

A moving home mortgage refers to obtaining a new mortgage when you sell your current property and purchase a new one. This process can take one of two main routes: transferring your existing mortgage to the new property, known as “porting,” or securing a completely new mortgage.

Porting your existing mortgage involves moving your current mortgage deal to the new property. This option allows you to retain your existing interest rate and mortgage terms, which can be beneficial if you have a favourable rate. Porting can also help you avoid early repayment charges that might apply if you were to repay your mortgage fully before the end of its term. However, even with porting, your lender will re-evaluate your financial situation and the new property to ensure you still qualify for the mortgage.

On the other hand, securing a new mortgage involves paying off your current mortgage and taking out a new one for your new home. This approach offers the opportunity to shop around for better interest rates and more suitable mortgage terms, potentially reducing your monthly payments or overall mortgage costs.

However, this option might include additional fees, such as early repayment charges on your existing mortgage and arrangement fees for the new one. Whether you port your mortgage or secure a new one, consulting with a mortgage advisor can help you navigate the process and make the best decision for your financial situation.

Suppose you need to increase the size of your mortgage to buy a more expensive property. In that case, you’ll also need to meet the lender’s borrowing criteria for that extra amount, which may be more rigorous than your original loan. We can guide you in what the best provider for moving home mortgages will be for such a change in mortgage circumstances.

Alternatively, you may take out a new mortgage with a new provider if you can find a more competitive deal as an alternative to porting and increasing your existing mortgage. Be aware, however, that you may need to pay early repayment charges and other fees to end your current mortgage deal.

If your house has appreciated in value since you bought it, you’ll have built-up equity. Equity is the surplus of money you have in a current property. For instance, if you owe £100,000.00, but your house sells for £120,000.00, you have £20,000.00 equity in your home. You are allowing more funds to be allocated to your re-purchase position. Having equity can also increase your chances of getting a bigger mortgage for a more expensive property.

You’re also more likely to get accepted for a larger mortgage if you’ve had a pay rise or reduced your outgoings and keep up with your existing mortgage repayments. If it was the money you were lending out, what type of person would you like to see borrowing it? So, even if you’re moving into your first property but have goals to move into a more significant one, start to plan now so when the time comes, you will be in the best position you can be in for that upgrade/change.

The short answer is yes, many mortgages are “portable,” allowing you to transfer your current mortgage to a new property.

However, you will need to reapply for your existing mortgage deal. If your circumstances have changed, you may no longer qualify and will be subject to a new credit assessment.

The costs associated with moving home will include:

Estate agent fees: If you sell your existing property, you’ll need to pay estate agent fees, typically around 1% of the sale price.

Stamp duty: You may need to pay stamp duty based on the latest rates, which you can find on the HMRC website. The exact amount will be determined during the legal process. If you keep your existing property as an investment, there may be a surcharge.

Mortgage fees: Depending on the type of mortgage recommended, arrangements and broker fees may occur during the application process. Some mortgage products have no arrangement fees but higher rates, while others have fees but lower rates. As experienced mortgage brokers, we use software to determine the best option for you based on your situation.

Valuation and survey costs: As part of the application process, you may need to pay for a valuation and survey on your new property. Costs can range from approximately £150 to £1,000, depending on the property’s condition, age, and construction. A basic survey may suffice for newer houses, but for older homes, a more comprehensive survey might be necessary to check for issues like cracks, dampness, and structural problems.

Conveyancing costs: As a home mover, you must pay for conveyancing for your sale and new purchase. Typically, these costs range from £1,500 to £2,000, including stamp duty. The exact amount can vary depending on whether the property is leasehold or freehold, whether it’s in sole or joint names, and if you have a gifted deposit.

Moving costs: You may need to hire a van or a removal company to help you move your belongings.

When applying for a mortgage, having the right documents ready can help streamline the process. Here’s a list of the key documents you’ll typically need:

• Proof of Identity:

• Passport or Driving Licence

• Proof of Address:

• Recent Utility Bill (within the last 3 months)

• Council Tax Bill

• Proof of Income:

• For Employed Applicants:

• Last 3 months’ Payslips

• For Self-Employed Applicants:

• At least 1 years’ Tax calculations and overviews

• At least 1-years Full accounts (if LTD company)

• Bank Statements:

• Latest 3 months’ Bank Statements

• Proof of Deposit:

• Savings Account Statements

• Evidence of Gifted Deposits (if applicable)

• Credit Report:

• A copy of your Credit Report (check now – credit report)

Having these documents ready will help your mortgage broker or lender process your application more efficiently. If you have any specific circumstances or need further assistance, our team at Protex Financial is here to guide you through every step of the mortgage process.

A trusted and experienced mortgage broker can help you compare deals and identify the most suitable options as you approach the end of your initial mortgage term. They will consider your financial goals, current circumstances, and future plans to recommend the best mortgage products available.

During your free, no-obligation mortgage consultation, we will address all your questions and provide a clear understanding of your options. We will explain each option’s potential benefits and drawbacks, helping you make an informed decision. We aim to ensure you find a mortgage solution that meets your needs and helps you achieve financial stability and peace of mind.

Whether you’re looking to secure a better interest rate, release equity, or explore alternative mortgage products, our expert guidance will support you every step of the way.

Yes, self-employed applicants can obtain moving home mortgages. However, securing a mortgage as a self-employed individual can be more challenging than for employed individuals due to the increased risk perceived by lenders.

Here are the most common income types considered for self-employed moving home mortgages:

• Dividend income
• PAYE income
• CIS income
• Directors’ loan
• Retained profits
• Freelancer/contractor income
• Investment Income
• Pension income

Navigating the self-employed mortgage process can be complex, and having a professional mortgage broker by your side can save you significant time and money. With many hurdles to overcome, additional help and support can prove invaluable throughout your mortgage journey.

Remortgaging refers to taking out a new mortgage on a property you own, either to replace your existing mortgage or borrow additional funds against your property’s equity. Here’s a more detailed explanation of what remortgaging involves:

Replacing Your Existing Mortgage

When you remortgage, you switch your current mortgage to a new deal, usually with a different lender, although sometimes with the same lender. The main reasons for doing this include securing a lower interest rate, obtaining better terms, or moving to a mortgage product that better suits your current financial situation and goals.

Borrowing Additional Funds

Remortgaging can also involve borrowing extra money from your existing mortgage balance. This is often done to release equity, which is the difference between the current value of your property and the outstanding mortgage balance. The additional funds can be used for various purposes, such as home improvements, consolidating other debts, or financing large purchases.

Reasons to Remortgage

• Lower Interest Rates: To reduce your monthly payments and overall interest costs.
• Better Mortgage Terms: Find a mortgage product offering more favourable terms or greater flexibility.
• Debt Consolidation: To combine high-interest debts into your mortgage for easier management and potentially lower overall interest.
• Equity Release: To access the increased value of your property for personal use.

The Process of Remortgaging

• Assessment: Review your current mortgage, financial situation, and goals.
• Comparison: Compare deals from various lenders to find the best option.
• Application: Apply for the new mortgage, providing the necessary documentation and information.
• Valuation: The new lender will conduct a property valuation to determine its market value.
• Approval: Once approved, your new lender will pay off your existing mortgage and set up the new one.

Key Considerations

• Fees and Costs: Remortgaging can involve costs such as arrangement fees, valuation fees, and legal fees. Ensure these costs are outweighed by the benefits.
• Timing: Consider the best time to remortgage, especially if you’re currently on a fixed-rate deal with early repayment charges.
• Advice: Consulting with a mortgage broker can provide valuable insights and help you navigate the remortgage process efficiently.

Remortgaging can be a smart financial move if done for the right reasons and with careful consideration of all associated costs and benefits.

The duration of the moving home process can vary widely depending on several factors. However, a typical timeframe can range from 8 to 12 weeks from start to finish.

1. Preparing to Sell and Buy (1-3 weeks)

• Research and Preparation: Start by researching the property market, getting your home valued, and finding a new property. This can take a week or two.
• Mortgage Pre-Approval: Obtain a mortgage pre-approval to understand your budget for the new home.

2. Listing and Marketing Your Property (2-4 weeks)

• Choosing an Estate Agent: Select an estate agent to list your property. This involves signing contracts and preparing your home for viewings.
• Marketing and Viewings: Allow time for your property to be marketed and for potential buyers to view it.

3. Receiving and Accepting an Offer (1-3 weeks)

• Offers and Negotiations: Once offers come in, you’ll need time to negotiate and accept the best offer.

4. Applying for a New Mortgage (2-4 weeks)

• Mortgage Application: Submit your mortgage application, which includes providing necessary documentation such as proof of income and credit checks.
• Valuation and Survey: The lender will arrange a valuation of the new property, and you may need to conduct a survey. This process can take a couple of weeks.

5. Legal Work and Conveyancing (4-8 weeks)

• Solicitor Involvement: Both your solicitor and the buyer’s solicitor will handle the legal aspects of the sale and purchase, including searches, contract exchanges, and ensuring there are no legal issues with the property.
• Searches and Enquiries: Your solicitor will conduct property searches and deal with any enquiries from the buyer’s solicitor. This stage can take several weeks depending on the complexity of the transaction.

6. Exchange of Contracts (1 week)

• Final Checks: Both parties will carry out final checks and ensure all conditions of the sale are met.
• Exchange Contracts: Once satisfied, contracts are exchanged, and a completion date is set. This legally binds both parties to the transaction.

7. Completion and Moving Day (1-2 weeks)

• Final Arrangements: Prepare for the move by booking removals and packing your belongings.
• Completion Day: On the agreed completion date, the funds are transferred, and you receive the keys to your new home.

If you’re looking to downsize, an increase in the value of your current home could mean that you’ll be able to take out a smaller mortgage and reduce your monthly repayments – provided your financial situation hasn’t changed. If the difference in value is significant enough, you may even get a cheaper home mortgage-free by using the equity you have built up in the new property.