What happens to my mortgage when I’m moving house?
Not everyone who wants to move house has paid off his or her mortgage. So, what happens if you fall into this category? Read on to find out more.
If you’re thinking to yourself, ‘how can I move my mortgage?’, you’ve come to the right place. While with most mortgages you’ll be able to transfer the amount you owe from the amount that you property you currently live in to the one you wish to own, it might not always be this easy.
Contact your lender:
We recommend that you should speak to your lender or a mortgage broker to help plan your next move. They’ll be able to help you understand whether you’ll incur any mortgage fees or penalties and how your previous mortgage amount may be carried over. This is going to be important for you to work out whether you’ll need to borrow more from your lender. After all, once the property you want to purchase has been valued it could be quite a lot more. Let’s see what your options might be if this is the case.
Porting or finding a better mortgage deal or switching lender:
Porting is when you take your mortgage from your current home to your new home. If its just a straight transfer & you are within an early repayment period then, this is probably the best option but, this is never usually the case. If you are purchasing a more expensive property & require additional borrowing you need to know that your current lender will offer the extra money & at what rate. If you are downsizing & looking to pay a lump of money off your mortgage balance then will that incur early repayment charges.
When you’re looking for a new home, this often provides an opportunity for you to find a better deal and ultimately save some much needed cash. We recommend that you have a chat with your lender to check whether there are going to be any penalties or fees that you may be charged for on your existing mortgage. Therefore, to make sure that changing mortgage provider or mortgage deal pays dividends; make sure you consider the costs! It’ll be vital to ensure that you find a mortgage deal which is cheap enough to cover the cost of these potential fees and charges.
However, it might not be that you have any fees or charges to pay. So, then what? With mortgage deals between lenders becoming an increasingly competitive we recommend that you shop around and find a deal for you that works. This’ll mean looking at different types of mortgage deals and interest rates etc. You’ll also need to look at arrangement fees and other charges that may apply.
How we can help:
We know this might sound a bit daunting, so why not use MO? At Mortgages Online we can compare 1000s of mortgages from 100s of lenders, to make your move to a new home far easier. We compare thousands of deals from hundreds of lenders which can go a long way to reducing the amount of legwork that you’ll put in. It’ll make you think your previous predicament on whether ‘I should move my mortgage’ a lot simpler.
At MO we have a wealth of articles on everything to do with mortgages. Like managing monthly repayments, what’s the different between tracker and fixed rate mortgages and even information on home insurance. If it’s about your home or mortgage we’ve got info on it! All of this, plus our tailored mortgage search service, for free! No credit card needed. Visit our Articles section to find all of our resources.