Home Mover Mortgages Made Simple
There are multiple reasons why homeowners decide to move. The ultimate decision could be down to outgrowing their current home, welcoming a new addition to the family, relocating to a better catchment area for their children’s schooling, plotting a career move or simply that they want to live somewhere else.
Some may argue that when you are looking for a new home as a “Home Mover” the process should be simpler because you have done it all before and this is just another step forward on the property ladder. That said, there is still a huge amount to take into consideration, not only from the perspective of finding the right home, but also what to do with your mortgage facility. Do you pay it off, take your mortgage with you or let out your property?
Is there merit in paying it off?
Generally, a home move will necessitate a difference in what you currently owe by way of mortgage and what you need to consider to facilitate the onward purchase. Therefore, paying off the mortgage on the house you are selling and taking out a new mortgage on the one you are buying is one way of dealing with the transaction.
Whilst this presents an opportunity to look around for a better mortgage deal you need to satisfy yourself that there are no penalties associated with your existing home loan. You may find that there are fees and additional interest charges if you’re still in the special offer period of the loan, or, on a fixed or discounted deal rather than the lender’s standard variable rate.
Should you take your mortgage with you?
Most mortgages these days are portable, meaning that you can transfer them from the property that you originally borrowed against, to the home that you want to move to.
It’s important to note that there may be fees to pay for the transfer, for example a few hundred pounds is typical to port a mortgage to a new property. This is just another cost to be taken into consideration when deciding upon an appropriate course of action, but here at Charles Derby Mortgage Bureau, we can guide you through the different options, taking your unique circumstances into account.
Should you let out your existing property?
Let to Buy may be an option that is open to you and if you are struggling to sell your home or your property has dropped in value, this is something you may want to consider. Letting out your property could allow you to move into a new home without feeling pressure to sell in a rush, potentially at a loss, and may also provide you with the income stream to ease the financial burden.
This option, in particular, is a bit of a minefield as most lenders willing to accept this scenario will do so with a list of restrictions. Whatever you decide to do, professional advice is essential.
Friendly, straight-talking advice every step of the way
It’s certainly true that lenders can be rather picky about the types of properties they're willing to lend on, especially high street banks and building societies, but our dependable team can guide you through the process of climbing the property ladder, ensuring you navigate the issues and complexities that come from buying and selling, delivering practical advice to help you choose the mortgage product that is right for you.
To speak to us about your next step up the property ladder, call Charles Derby Mortgage Bureau today on 0330 094 5476 or send us a message and we’ll be back in touch as soon as possible.