Home Movers Factsheet
So you’re thinking about moving home. Whether you are looking to upsize, downsize or relocate, there are a lot of things to consider. This factsheet explains everything you need to know about home mover mortgages.
How much can I borrow?
This will depend on a number of factors, including your income, outgoings and the size of your deposit. Our mortgage calculator (link) will give you an estimate of how much you may be able to borrow.
Can I take my existing mortgage with me?
If your mortgage is portable then you should be able to take it with you to your new home, but you may need to reapply – especially if you need to borrow more money. You may find it more difficult to get a mortgage if your financial situation has changed and even if your income is the same, you may not be able to get the same deal again because lenders have tightened their criteria in recent years.
However, even if your current lender refuses you, you may still be able to get a new mortgage elsewhere. Jordan Lynch have an extensive knowledge of the whole market, so we can advise you on the best options for your circumstances.
I want a new mortgage deal when I move
There are many reasons why you may wish to find a new mortgage, including wanting a better deal with a more favorable interest rate. You can take out a whole new mortgage or add an additional mortgage to your current one. Again, Jordan Lynch can explain all the options available to help you make the right decision for you.
How do I apply for a home mover mortgage?
If you haven’t moved house for a while, then you may have forgotten what’s involved with the mortgage application process.
First you apply for a mortgage agreement in principle and you will usually receive a decision within a few hours. Once you know how much you can borrow, you can start looking at properties.
When you have found the perfect new home and had an offer accepted, it is time to apply for a mortgage, which typically takes two to four weeks. A solicitor will take care of the conveyancing at this time and you will also hire a surveyor to investigate the state of the new property. You can choose a basic valuation, HomeBuyer’s report or full survey.
Once everything is in place, you are ready to exchange contracts with the vendors, complete on the purchase and pick up the keys to your new home. Congratulations!
Do I need to sell my current home first?
This is down to personal preference, but many people sell their property first so they know they have the funds available for a deposit on their new home. When selling the old house, you can make it clear to your buyers that they can’t move in until you are ready to move out to avoid ending up homeless.
What costs are involved with moving home?
Check the terms and conditions of your mortgage because there may be an early repayment fee to pay.
You will have to pay a solicitor to deal with the sale of your old home as well as the purchase of a new one. You also need to pay fees to a surveyor and the estate agent who sells your old home.
If your new home costs more than £125,000, you must pay stamp duty land tax. How much you owe increases with the property value and you can find out how much you need to pay with the HMRC’s stamp duty calculator.(link: https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro)
Finally, the lender may charge you a mortgage fee. Jordan Lynch will provide details of your mortgage fees, interest and repayments for you before you go ahead with the application.