Moving Home Mortgage Advice

A moving home mortgage is simply a standard mortgage for those looking to move home. With a Moving Home mortgage, your mortgage broker will consider any porting options with your existing lender if applicable and let you know how much you’ll be able to borrow on a new mortgage.

With Moving Home mortgages, if you have a lot of equity in your existing property you can look at releasing some equity at this time for debt consolidation or home improvements also.

Your mortgage broker will advise you how much this will cost and what your options are if applicable. Usually, the bigger the deposit you can put down on your new property, the better interest rate mortgage deal you’ll qualify for.

The amount you can borrow on a moving home mortgage will depend on the following factors:

• How much equity/deposit you have available to put down as a deposit on your new property.
• Your income and affordability.
• Your existing credit commitments such as other mortgages, loans, credit cards etc.
• How many financial dependents you have.
• Your credit score, although bad credit mortgages are available.
• Your age can play a factor; however, we have lots of later life mortgage deals available for those over 50.

Your mortgage broker will let you know exactly how much you can borrow and how much this will cost you per month. You’ll then know what price range to look in for your new home.

First time buyers generally pay higher interest rates than home movers on their mortgages due to the lower deposit they have available and the increased risk of repossession to the lender.

As a home mover, you’ll have more choice of mortgages than a first time buyer now that you have built up a credit history with a mortgage and equity.

Moving home mortgages can be a maze without a mortgage broker on your side. Moving home mortgages are more complex than with first time buyer mortgages due to the increased mortgage options available and also handling both the sale and purchase together.

The interest rate on a moving home mortgage will be determined by how much equity/deposit you can put down on your new property and your credit score.

Interest rates for moving home mortgages work in bands based on how much risk the lender is taking on, therefore, a 95% mortgage will likely have a higher interest rate than a 75% deal.

With regards to your credit score, there are bad credit options available including getting a mortgage with a CCJ, however, due to the increased risk to the lender, the interest rates are usually higher than with clean credit mortgages.

As an experienced mortgage broker, it’s our job to find you the best deal based on your personal situation. We’ll shop around 1,000s of deals saving you both time and money.

A minimum of 5% deposit is required for a moving home mortgage, this can be from the equity in your current home, savings, or a family gift.

If you are looking at keeping some of your equity back for one reason or another this can be ok, your mortgage broker will discuss your options here. Examples include if you are looking for a debt consolidation remortgage to reduce your outgoings.

There are pros and cons of doing debt consolidation, therefore, it’s important that you seek professional mortgage advice as it won’t be beneficial for everyone in the long term.

Possibly, if you are tied into a fixed rate deal, most lenders allow you to port your existing mortgage deal to a new property. Our mortgage advisor team can help you with this to find out what your options are and how much any additional borrowing will cost you.

Often with porting, you’ll have to meet the existing lending criteria so there’s still an application involved in the process. If you port your existing deal and then take additional borrowing with your existing lender, you’ll usually have two different products with different rates and end dates.

If you are not tied into a fixed rate deal, it may be worthwhile searching the market to find the best deal to save you money.

Moving Home mortgages often come with various fees, such as arrangement fees, valuation fees, and legal fees. This question helps individuals understand the full cost involved in obtaining a mortgage.

The short answer is yes, many mortgages are ‘portable’, which means you may be able to transfer your current mortgage to a new property.

Although, in effect you will have to reapply for that deal, so if your circumstances have changed at all, then you may no longer qualify and you will be subject to a new credit score.

The costs associated with moving home will include:

1. Estate agent fees, if you are selling your existing property, you’ll have the estate agents’ fees to pay, these are typically in the region of 1%. Please note that you’ll need to add VAT on to these fees also.
2. Stamp duty, here are the latest rates – HMRC Stamp Duty Rates. The amount of stamp duty you’ll need to pay will be picked up during the legal process. If you are keeping hold of your existing property as an investment, there may be a surcharge to pay.
3. Mortgage fees, depending on the type of mortgage that is recommended, there may be arrangement and mortgage broker fees payable during the application process. With mortgage arrangement fees, some products have free deals but come with higher rates, some you pay a fee for, and they have lower rates, some are in the middle etc. As an experienced mortgage broker, we have access to software that will work all of this out for you and let us know which one works out best for you based on your personal situation.
4. Valuation & survey costs, as part of your application process, you may be required for pay for a valuation and a survey on your new property. There are options here ranging from approximately £150 to £1,000 depending on the condition, age, and construction of the property you are buying. For example, if you are buying a newer house then a basic survey will suffice, however, if you are buying an older house then you may want a more in-depth pair of eyes looking over your property for cracks, damp, and other structural problems etc.
5. Conveyancing costs, as a home mover, you’ll have double to pay, one lot for your sale and one for your new purchase. Typically, for a home mover your conveyancing costs should be between £1500 and £2,000 all-inclusive plus any stamp duty payable. The amount will vary on whether you are buying a leasehold or freehold, sole, or joint names, have a gifted deposit etc.
6. Moving costs, you may need to hire a van for the day or a removals company to help you move your furniture.

As with all mortgage applications, certain documents are required by your mortgage broker and new lender as part of the advice process.

Home movers will need to provide the following documents to apply for a mortgage:

• Identification in the form of a passport, drivers’ licence etc.
• Recent proof of address.
• Existing mortgage statement and offer if applicable.
• 3 months proof of earnings.
• 3 months bank statements showing your income and outgoings.
• Proof of deposit/equity in your current home.
• A credit report might be handy also if you have concerns about your score.

Yes, self-employed applicants can get moving home mortgages. However, getting a self-employed mortgage can prove more difficult than if you were employed due to the increased risk by the lender.

Here are the most popular income types for self-employed moving home mortgages:

• Dividend income.
• PAYE income.
• CIS Income.
• Directors’ loan.
• Retained profits.
• Freelancer/Contractor income.
• Employer pension contributions adjustment.
• Benefit income.
• Investment income.
• Pension income.
• Combination of the above.

With self-employed mortgages, having a professional mortgage broker by your side throughout the whole journey could save you a lot of both time and money. Usually there are lots of hurdles to overcome along the way so having additional help and support will prove invaluable.