Home Mover Mortgage Advice
in Leamington Spa & Warwickshire
Moving house can be a very stressful process which involves needing to make lots of important decisions, one of which being how to approach mortgaging your new home. As a home mover, you will need to exit your current mortgage deal and take out a another one with a new lender, or ‘port’ your existing mortgage across to the new property.
We support home movers through the entire homebuying journey – ensuring you understand the process, establish your property budget, locate a suitable home and secure a favourable mortgage deal.
What is porting a mortgage?
Porting refers to the process of transferring your existing mortgage to a new property, allowing you to maintain your current mortgage deal despite moving house. This option may appear simpler compared to remortgaging, with a notable benefit of potentially avoiding any early repayment penalties, which can be substantial, often reaching up to 5% of the total loan amount.
However, it's important to note that porting isn't without its drawbacks. While you can bypass early repayment penalties, there are still factors such as arrangement charges and valuation fees to take into account. Additionally, lenders will reassess your financial eligibility based on their affordability criteria, which could result in your application being declined. This is particularly relevant if your income or credit score has changed since you initially took out the mortgage.
Can I increase my mortgage amount when porting?
Some lenders may allow you to increase your loan amount when porting your mortgage, particularly if you're acquiring a property with a higher value. The feasibility of this hinges on the criteria set by the lender and your individual financial circumstances.
In cases where this isn't possible, certain lenders might allow you to proceed with porting while requiring you to secure a separate mortgage for the additional amount. This would result in your having two separate mortgage products with the same lender.
Can I decrease my mortgage amount when porting?
Moving to a smaller property typically simplifies the porting process. While the majority of lenders are likely to approve such requests, it's important to note that if the mortgage amount decreases by more than 10%, there could be an early repayment penalty to consider.
Can the value of my existing home impact the options available to me?
Having substantial equity in your home typically often leads to more favourable mortgage options. This equity is built up by paying off a significant portion of your mortgage or experiencing an increase in your property's value. A lower Loan-to-Value ratio will result in improved interest rates and access to a broader range of lender options.
However, if you have minimal or negative equity - meaning you owe more on your mortgage than your home's current value - lenders are less inclined to permit mortgage porting, unless you're downsizing.
Can the value of my new home impact the options available to me?
In moving to a more expensive property, you must satisfy the lender's affordability criteria and credit assessment for the increased loan amount. This applies to both mortgage porting and to remortgaging.
Using a mortgage calculator in the early stages can be extremely valuable, allowing you to gauge the affordability of your monthly payments to ensure that its financially viable. Opting for a smaller property through downsizing generally simplifies matters, as it doesn't involve borrowing additional funds.
Is porting right for me?
Approach your lender to explore the possibility of porting within your current mortgage arrangement as this will help you gain an understanding of the process. It's advisable to thoroughly evaluate the choices surrounding both porting and remortgaging to see which one is more cost effective.
Explore aspects such as early repayment penalties, arrangement fees, valuation fees, monthly payments, and the complexities of mortgage rates. Alternatively, a mortgage adviser can handle all this for you.
Looking for home mover mortgage advice in Leamington Spa & Warwickshire?
Jack Bewick offers tailored home mover mortgage advice specialising across Warwick, Leamington Spa, Kenilworth, Stratford upon Avon, Coventry & Warwickshire, Lutterworth & Leicestershire areas.
Offering expert independent mortgage advice on:
First Time Buyer Mortgages
Home Mover Mortgages
Remortgages
Buy To Let Mortgages
Limited Company Mortgages
Affordable Housing Mortgages (Shared Ownership)
Self Employed Mortgages
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Some of the mortgage providers we work with...
Why work with Jack Bewick?
A leading 'whole of market' mortgage adviser in Warwickshire, with access to the most competitive products on the market.
Honest, professional and independent financial advice tailored to suit your personal circumstances.
Friendly advice to help you navigate financial challenges.
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