Moving to a new house is always a huge decision to make. Along with the stress of finding a new place to stay, there’s also the question of what will happen to your mortgage when you move. This guide will help you understand the realities of what moving might mean for you in terms of your mortgage and your finances in the UK.
Porting a Mortgage
First things first, porting your mortgage means that you can keep your existing mortgage provider when you change homes. The current lender will transfer your mortgage to the new property for you so that there are no interruptions to the finance of your home.
It’s worth noting that this doesn’t necessarily mean that you will have to keep the same mortgage deal when you move. It may be possible to change the terms of your mortgage deal from your current mortgage provider after you move.
What Happens When You Port Your Mortgage?
The lender for your current house will let you know what to do. Usually, the process will be that you tell your current mortgage provider that you’re moving, and then they will no longer lend on your home. You must then transfer your mortgage over to the new property and start paying your mortgage company again.
Porting is a great solution when moving to a new home. However, there are a few things you should know about porting:
1.You May Have to Reapply for Your Mortgage
When you port your mortgage, you may have to apply for your mortgage again. Your current mortgage provider will usually let you know before you move, but it’s worth checking. This means that you may need to provide proof of your income and pay a deposit again. Usually, however, if you have paid regularly on your mortgage, then you won’t need to provide evidence.
2.You May Not be able to Borrow More
If you wanted to borrow more from your current mortgage provider or from another lender, then you might not be able to when you move. This is because the lender will want to keep the size of your mortgage the same. They may be willing to lend less and have a smaller mortgage, but this will depend on your income.
3.If You Can Borrow More, It’s Like Having Two Loans
Most of the time, moving means you’re looking for a bigger house, which means you need to borrow additional cash to pay for it. Most lenders are willing to lend money, but they may opt to put it into a different mortgage product that involves an arrangement fee and maybe even a higher rate. You’re essentially paying for two mortgages, which can easily eat up a huge chunk of your income.
How to Transfer Your Mortgage When You Move
If you’re moving, you’ll have to tell your mortgage company about it. They will need to know your new address and details about the new property. They will also need to know if you’re going to pay off the existing mortgage or not.
One of the things you can’t avoid is paying fees when you move. However, you can avoid some of these fees by transferring your mortgage. Make sure you’re not just trying to transfer your mortgage because it’s cheaper, though. You’ll still have to pay the transfer fee and any other charges.
When Can I Transfer My Mortgage?
As mentioned above, you can transfer your mortgage as soon as you’ve found a new property to live in. It’s vital that you get in touch with your current lender right away to discuss your plans. You will also need to complete legal forms to transfer your mortgage.
Conclusion
There’s no easy answer to whether you should transfer your mortgage or not. Whatever you decide to do, you’ll want to make sure it’s the right choice for you. Consider your financial situation and consult a mortgage expert if you’re unsure.
If you’re looking for a mortgage that’s just right for your needs and your financial capabilities, A Move Brokers is here to help. We are a team of qualified professional mortgage advisers in Chester that will help you get the best possible deal on your real estate journey. Contact us today to book a free initial consultation!
This article is for information only and should not be seen as advice or a recommendation to act. As a mortgage is secured against your home or property, it may be repossessed if you do not keep up the mortgage repayments.