Moving Home and Moving Mortgage
Our Mortgage Service - helping you make the right decision
"The essence of the Fair Mortgages service is professional independent mortgage and protection advice brought to you by a team of specialist advisers and experienced administration support. With the recent changes (long overdue) to the mortgage industry, the message from the Regulator and lenders to the UK public is to get professional advice.
As your mortgage is such an important transaction, good advice is imperative.
"We know that the internet is the first port of call for many people when looking for mortgage solutions; our view is, yes use the internet to do your own research , but then bring it to us and we’ll let you know how your findings compare and then give you the information and advice you need - so that you can make the right decision for your future.” Adam Arnott, Head of Mortgages & Protection
If your lender does not allow you to move your current mortgage, you have two options. You can either stay put, or you can start looking around for a different lender that will let you get a new mortgage with them. Switching to a new mortgage to another lender could allow you to get access to new mortgage deals with more favourable rates of interest.
If you decide that changing mortgage providers is the right option for you, our quick and easy online mortgage calculator makes it simple to compare over 5,000 of the latest mortgage deals on the market today. Alternatively if you wish to speak to one of advisers about your options click here »
If you are planning to move home, you may be able to take your existing mortgage with you, keeping your current mortgage interest rate when you move into your new property.
Since the economic downturn took effect in 2008, it may not be as easy to transfer your existing mortgage as it once was. However, provided that you meet the criteria, keeping your existing mortgage when you move house can offer various benefits.
Keeping your existing mortgage when you move home
The process of taking your existing mortgage with you when you move home is known as transferring or ‘porting’ your mortgage. Some of the advantages of transferring your current mortgage when you move home include:
- You get keep the rate and conditions for the current balance of your mortgage – sticking with the same mortgage deal could mean one less thing to think about while you organise your house move.
- If your current interest rate is lower than other mortgage rates currently available, you could save money by keeping your existing deal, rather than taking out a new mortgage from the current options available.
- You could avoid paying any early repayment charge that you may incur on your current mortgage – these are often levied if you leave the mortgage deal early and move to a new mortgage provider.
Points to consider when keeping your existing mortgage
Your existing lender may not provide this option.
Many of the mortgage deals on the market are offered on flexible terms, which often include the option to take your mortgage with you when you move home. However, there are a few points which you will need to take into consideration in order to ensure that your mortgage move goes smoothly. Some of the potential issues you might encounter when thinking of moving your mortgage could include:
- The lender will reassess you as a borrower as if you were applying for a mortgage for the first time, even if you are not looking to change the value of your borrowing. They will check that your financial circumstances haven't changed significantly since you first took out the mortgage.
- You may need to pay a transfer fee to move a mortgage to a new property – the amount will vary from lender to lender, so check with your mortgage provider first.
- If you have a specialist mortgage that is designed for people with bad credit, you may not be able to move your mortgage easily, so check with your lender first.
- You could miss out on better mortgage deals that are currently on the market – it make sense to periodically reassess your mortgage and look around to see what other mortgage deals are currently available. Moving home is a good time to do this.
For more information on the latest mortgage deals please talk to our mortgage team.