Home Mover Mortgage - what you need to know
Whether you want to move to a new dream home or downsize to a smaller property, there are mortgage options available that can reduce your stress. With a Home Mover Mortgage, it’s possible to transfer your loan or take out a new one that suits your current circumstances. We look at what options are available and home to arrange them.
Who is eligible to apply?
If you have an existing mortgage and are thinking of moving home, it may be possible to increase or decrease the size of your loan to accommodate the new property. The process of transferring your existing loan to a new property is called ‘porting.’
Before making any big decisions, it’s worth checking the details of your loan agreement to make sure that it’s portable. If it isn’t, you can contact your mortgage provider and try to negotiate – if you have a respectable credit history, most lenders are willing to listen.
Factors that may affect your eligibility include a change of job, self-employment, children, or some other significant change in your financial circumstances.
When might I need one?
A home mover mortgage might be relevant to you if you are thinking of moving home for any reason, or you want to remortgage your existing property to adjust your term or switch to a different rate of interest.
These days most mortgages are portable, meaning that you can quickly transfer your current mortgage to a new property; however, you will still have to go through the application process for a new loan. The new loan may have to be adjusted.
If your current fixed-rate mortgage deal – which generally lasts between 2-5 years – is about to run out, wait until you are back on a standard variable rate before making your switch – this can save you money.
How do I arrange one?
The first step is to contact your mortgage broker and talk to them about the details of your current arrangement. Regardless of whether you want to port your mortgage or remortgage your property, you need to know if you are eligible.
The process of applying for a Home Mover Mortgage is the same as when you applied for your first mortgage. You will have to go through an application process, and your mortgage provider will carry out a valuation of the property. A credit check will also be carried out.
How do they work?
In short, porting a mortgage is the same process as applying for your first mortgage. Your eligibility will need to be assessed by the mortgage provider, and the property will have to be surveyed. Furthermore, your financials need to be checked and validated.
Your mortgage provider will use all of the current data regarding your financial circumstances and your new property to make a decision. Your previous mortgage circumstances will not be relevant to the new arrangement which can sometimes alter the terms of your loan in your favour.
Assuming that you qualify and the property is successfully validated, it’s possible to port your mortgage to a new property quite easily, but bear in mind there will be extra charges incurred.
Your property may be repossessed if you do not keep up repayments on your mortgage.
Commercial mortgages and some buy to let mortgages are not regulated by the Financial Conduct Authority