Listen To Ben’s Story When Buying His Next Family Home
The vast majority of mortgages today are classed as ‘portable’ which essentially means when moving home you can take the mortgage with you, transferring it from your old house to your new one.
The benefits of doing this is that it can mean you do not need to pay any early repayment charges that may be due on your existing mortgage as you are not ‘redeeming’ it, for example, cashing it in early, but taking it with you.
However the process of ‘porting’ your mortgage or taking it with you is not always an easy one and it can be hugely valuable for you to get advice by a qualified broker such as those at Mortgage Pathways.
Even though you want to transfer your existing mortgage to your new home, your lender will need to reassess your circumstances, even if you require the same level of mortgage.
There are a small number of mortgages which are not portable but these are often more specialist deals for clients with bad credit scores, for example. Again if this is the case, we will be able to advise you on what your options are and will help you to get a mortgage with another lender so that you can go ahead and buy your new home.
Occasionally, even though you have a portable mortgage, there is a chance that your lender will not allow you to transfer the loan. This would usually be, for example, if you have experienced credit problems since you took out your mortgage, if the lender thinks the mortgage is no longer affordable for you, or sometimes just because they have altered their mortgage criteria. In all of these cases we will talk you through your options and help you to find another lender if that is the right move for you.
What happens if your new house costs more than your old one?
If you are moving to a larger property it is likely that you will require a bigger mortgage and, if this is the case, there are a number of options open to you that we can help you with.
- You can redeem (pay off) your existing mortgage and take out a completely new one. This is only usually a good idea if you do not have to pay early repayment charges on your existing mortgage or if you cannot take or port your mortgage with you. We will go through your options with you and look at the costs of paying off your mortgage and taking out a new one.
- You could port your existing mortgage and make up the higher amount by either a further advance with your existing lender, or by taking out a second charge loan. We will look at the different costs and interest rates involved in each of these options and find the best rates and lenders for your individual circumstances.
There may be a fee for mortgage advice, the precise amount will depend on your circumstances but we estimate that it will be £299. We do not charge a fee for our services for New Build Homes; we receive commission from the provider.