Home Mover

What is a Home Mover?

A home mover is someone who currently has a mortgage on their existing property and intends to relocate to a new one. It’s worth noting that moving homes doesn’t necessarily require changing your existing mortgage, but you do have the choice to explore that option if you’d like.

What is porting a mortgage?

If you’re moving to a new home and want to keep your existing mortgage, you might hear about “porting” your mortgage. Essentially, this means your current mortgage can move with you to the new place, and many lenders allow this.  

It’s important to note that this process still involves a new mortgage application. And here’s the catch: if your financial situation has changed for the worse since your first mortgage application, your request to port your mortgage might not be approved.

When applying to port your mortgage, you’ll need to cover some costs like valuation fees and stamp duty for the new property. And here’s an interesting twist: if your new place requires you to borrow more money, you might end up with two mortgages – the old one and a new one. This can get expensive. In some cases, you might want to explore the idea of remortgaging instead.

Can all mortgages be ported?

In a few instances, mortgages might not be portable, although this is quite uncommon. If that happens, and you’re moving to a new home, your only choice would be to go for a remortgage. It’s worth noting, though, that you should be mindful of any early repayment charges or exit fees stated in your current mortgage terms. These can come into play if you’re ending your mortgage agreement.

Remortgaging for Home Movers?

Unless you’re planning to move to a much smaller and cheaper home, going for a remortgage might not really give you many benefits. Usually, it’s smarter to stick with your current mortgage if you can. Even if you’re downsizing, remember that the costs linked to remortgaging could end up being more than what you save.

Now, if you want to make remortgaging work in your favour, you’ve got to pick the right time, tailored to your own situation. For instance, if you’re getting close to the end of a fixed-rate deal, jumping into a remortgage might actually save you some cash. But if your financial situation is worse than when you first got your mortgage, even if your fixed-rate period is ending, it’s not very likely you’ll get approved for a remortgage. So, remember to consider your own financial scenario before making any big moves.

Moving home but staying with your current lender?

When considering moving home and porting isn’t an option, it’s worth noting that sticking with your current provider might not always lead to a much lower interest rate than what you’re currently paying.

Also, it’s important to know that staying with the same lender doesn’t necessarily mean you’ll avoid early repayment fees. Unless you’re on a standard variable rate (SVR) mortgage, most lenders will still charge fees if you’re exiting your current mortgage deal, even if you decide to stay with them. So, while exploring remortgaging can offer benefits, it’s essential to consider these factors when making your decision.

Changing lender when buying a new house.

If you’re not going to port your mortgage or if it’s not an option, the smartest way to save money often boils down to remortgage with a different lender.

In some cases, you can actually use a remortgage to both clear your current mortgage and get the funds to buy your new place. Alternatively, you could pay off your existing mortgage using the proceeds from selling your current home. But keep in mind, that this might come with early repayment fees.

It’s like a balancing act – you need to think about the potential savings versus any costs you might face. Speaking with professionals can really help you navigate this decision well.

Is upsizing an option?

If your current property’s value has gone up, you generally have the option to move to a more expensive home. But if your property’s value hasn’t increased, upsizing becomes more challenging. In this case, you’ll need to demonstrate that you can handle the higher mortgage payments for the more expensive property.

Should I look at downsizing?

When it comes to downsizing, there’s a money-saving opportunity that many homeowners find appealing, especially when their kids have moved out. If you can sell your current place for a good price, you might be able to get a more affordable new home – maybe even one you can buy without a mortgage.

And no matter the details, going for a less pricey home means you’ll need a smaller mortgage, which equals lower monthly payments. It’s a smart move if you’re looking to trim your ongoing costs.

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