What Happens To My Mortgage If I Move House? Your Questions Answered

If you’re moving house, you may be wondering what to do with your current mortgage. Thankfully, by doing some research and familiarising yourself with your options, the process doesn’t have to be as confusing as it may initially seem.

Should I talk to a mortgage broker before moving house?

Talking to a mortgage broker can be a great starting point when you’re looking to move house. They’ll take a good look at your current financial situation and will assess your options. A mortgage broker can be particularly helpful if your financial circumstances have changed since you applied for the mortgage on the property you’re now selling.

Is it possible to move my mortgage to a new property?

Most mortgages are portable, meaning you can move your mortgage from your current property over to your new one. However, when you ask your lender to ‘port’ your mortgage, you’ll be expected to re-apply for your original deal. If your circumstances have changed since you first applied for the mortgage, you may have difficulties accessing the deal again. For example, if your income has fallen, you’ve become self-employed or you have greater outgoings than before, your application may be refused. In recent years, many lenders have tightened their lending criteria meaning that people who were previously eligible for certain mortgage deals now struggle to get the loan they need, despite their circumstances remaining the same.

Is there a downside to porting my mortgage?

If you do decide to port your mortgage, you may miss out on more suitable mortgage deals.  You may need to pay a higher level of interest than you would if you were to remortgage and move to a different lender.

Can I take out a larger loan to fund a more expensive home?

If your new property is more expensive than the one you’re selling and you’re unable to port your current deal, you may need to leave your current mortgage deal and apply for a new one. Although this can be a more complex process, it could enable you to access more affordable deals.

Will I face charges if I remortgage?

In some cases, you may need to pay certain fees or charges when remortgaging your property. It’s wise to do some calculations to determine whether the money you can save on interest outweighs the fees. Here are some of the charges you may face: Early repayment charges: If you have a fixed rate deal and you’re still within your introductory period, you may have to pay early repayment charges to leave this deal. These charges will usually be between 1%-5% of the outstanding debt, though this can vary depending on the lender. Exit fees: When you pay off a mortgage, most lenders charge and exit fee. This is usually in the hundreds of pounds. New home loan charges: Once you’ve left your old mortgage deal, you’ll be expected to pay arrangement fees and valuation fees on your new mortgage.

Can remortgaging my home save money?

Remortgaging your property can often enable you to save money over the course of your mortgage, even if you take out a larger loan. You’ll need to shop around for a better deal than you currently have and look out for lower interest rates. If you’re moving home and you’d like to remortgage to a new deal, please get in touch with the team at TaylorMade. We’ll take a close look at your finances and compare hundreds of mortgage deals across the market to find you the best one.