Moving home mortgage basics
Moving home should be an exciting time in your life. But to make your dream home a reality – and to ensure it’s affordable once you get there – it’s crucial that you get the right mortgage deal.
Generally, you’ll need to have at least 5% or 10% of the purchase price to put down as a deposit on your new property – which you’ll hopefully be able to raise through the sale of your existing property. However, if you’ve not got much equity in your home, you may need to top up with your savings to secure the mortgage you need.
Mortgages to move house
Assuming you can raise that deposit, the next step is to consider which mortgage is right for you. It makes sense to take impartial advice from an expert such as Which? Mortgage Advisers, who can help run you through all the available loans that suit your needs.
Most mortgages these days are portable, meaning that you can transfer them from the property that you originally borrowed against to the home to which you want to move. Lenders will want to value the property – and you may need to borrow more to secure it. There may also be fees to pay for the transfer. A few hundred pounds is typical to port a mortgage to a new property.
Moving your mortgage
Moving home, however, is often an opportunity to look around for a better mortgage deal. Like any remortgage you should start by checking whether there are any penalties to pay on your existing home loan. In particular, there are likely to be fees and additional interest charges if you’re still in the special offer period of the loan – on a fixed or discounted deal rather than the lender’s standard variable rate.
In order to be better off by moving mortgage provider, you will need to find a deal that is sufficiently cheap to cover the cost of these penalties. That’s not impossible, though it will be easier to save money if your current deal is penalty-free.
Mortgages for those moving home are increasingly competitive, compare typical moving home mortgage rates.
But don’t forget to consider the impact of arrangement fees and other charges lenders may levy – these will typically be added to the mortgage value, but will add to the headline rate of interest payable.
What To Look For When Buying A Home
A new mortgage deal isn’t the only thing you need to be looking for when you decide to move home. There are many other factors to think about and doing your research beforehand can save you a lot of money and trouble when you move in. With so much on your plate already, it would be rude of us not to lend a helping hand – so that’s exactly what we have done! Check out our infographic on What To Look For When Buying A Home to get the specifics on exactly what you should be making notes on when you are viewing a new place to live.