Moving house is a significant life event – a thrilling yet complex journey that requires careful consideration at every turn. Among the many decisions you’ll face, one of the most crucial is how to secure a mortgage for your new home. At Easy Street, we’re here to help you navigate home Mover mortgages and make informed choices.
Understanding Home Mover Mortgages
When it comes to mortgages, lenders categorise customers into three main groups: First Time Buyers, Home Movers, and Remortgagers. As a Home Mover, your options differ from those of other groups. You have the choice to ‘port’ your existing mortgage to your new property or take out a new loan altogether. It’s essential to understand the implications of each option and choose the one that best suits your needs.
Exploring Porting: What You Need to Know
Porting a mortgage involves transferring it to your new property, allowing you to retain your current mortgage deal despite changing homes. While this may seem straightforward, it still requires reapplying for the mortgage and meeting the lender’s affordability criteria. Additionally, there may be fees associated with porting, such as arrangement and valuation fees. It’s crucial to carefully review the terms of your existing mortgage, as not all mortgages are portable.
Understanding Porting with Modifications
If you’re moving to a more expensive home, you may have the option to increase the mortgage value when porting. Alternatively, you could opt for an additional mortgage with the same lender to cover the extra value. However, approval will depend on the lender’s criteria and your financial situation, including affordability and credit scoring.
Considering Equity and Property Value
The equity in your current home plays a significant role in determining your mortgage options. Lenders assess the Loan to Value ratio, with lower ratios typically resulting in better rates and more flexibility in porting or switching lenders. Conversely, high Loan to Value ratios may limit your options, especially if you’re in negative equity.
Deciding Between Porting and Getting a New Mortgage
Deciding whether to port your existing mortgage or take out a new one requires careful consideration. Consulting with your current lender and comparing rates and fees with new mortgage options can help you make an informed decision. Many homeowners opt to work with a Mortgage Broker to navigate the complexities of mortgage comparison and ensure they secure the most competitive deal.
At Easy Street, we specialise in making the home-moving process smoother and less stressful. Our team of experts will assess your unique situation and property goals to explore the lenders and products that best suit your needs. From comparing options to securing an Agreement in Principle and guiding you through the application process, we’ll be with you every step of the way.
If you’re considering a move, don’t hesitate to reach out to Easy Street for expert support and guidance. As authorised and regulated by the Financial Conduct Authority, we’re committed to providing reliable mortgage advice that puts you on the path to your dream home. Get in touch with Easy Street today and let us help you make your next move a success.
