MORTGAGE ADVICE FOR HOME MOVERS:

Moving to a new house can be an exciting but stressful time. It is a life-changing decision, and whether you’re moving to your dream home or downsizing, it’s important to get the right mortgage. There are a lot of fun parts you get to enjoy, such as viewing houses, exploring local areas, choosing new furnishings but these are sometimes overshadowed by the more stressful parts, like arranging a mortgage. Crown Financial Ltd has access to over 150 Lenders and we not only provide mortgage advice for moving home, we manage your entire property-buying journey so you can enjoy this experience.

Porting a mortgage:

There are two basic solutions: you can either take your existing mortgage with you to the new property, a process commonly referred to as ‘porting’ a mortgage, or you can wrap things up and get a new one. Some lenders let you move your existing mortgage to a new property when you move house. This is called porting the mortgage. It could be cheaper to stay with your existing lender if they have High exit fees, especially if you have a fixed rate and a better interest rate than you could get from a new mortgage. If your outgoings have increased for example, or your employment status has changed, then you may not be accepted by your existing provider. You may also need to borrow more money if your new home is of greater value. This extra borrowing may exceed the limit of your existing mortgage, meaning your lender will essentially have to offer you a different mortgage.

Exit fees and Early repayment charges:

If you are within the introductory period of your mortgage you will probably have an early repayment charge, To leave your current deal, you will usually have to pay an redemption penalties with early repayment charges between 1% and 5% of the total value of your mortgage. You could also be charged an exit fee, on top of an arrangement fee and valuation fee placed on your new mortgage.

Remortgage with a new lender:

You may find it harder to get approved for the same mortgage if your financial circumstances have changed. For example, if you’ve changed job or become self-employed, had children or seen some other change in your financial circumstances. You can find a mortgage for your new home with a different lender. You could use this to pay off your existing mortgage, or you can also pay for it by selling your home. You may decide to take out a new mortgage with a new provider if you can find a more competitive deal. This could also be beneficial to you if house prices in your area have risen significantly since the time you bought your current home.

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