If this is the first time you are considering moving home, you may well be wondering where you begin and what the process involves. Every house move is different, and there are no concrete rules for the practicalities of moving all your possessions, but there are some simple steps to follow to make the financial part of moving flow smoothly. Read on for the step-by-step guide to moving home from Search Mortgage Solutions.
Step 1: Find out if your current mortgage is ‘portable’
Your mortgage might not be tied to your existing home, in fact, most mortgages aren’t. You may be able to move it to another property that you buy and this, of course, makes the whole process of buying a new home much easier. Whilst most mortgages are ‘portable’ it is advisable to find out if yours is by contacting your existing lender.
Whilst you are speaking with your mortgage provider, find out what fees are involved in transferring the mortgage to another property. The fees will be much less than the arrangement fees for a new mortgage, but it is worth finding out now so that you are not met with any sudden surprises.
Step 2: Research the price of your next home.
This part of buying a house has become much easier since the advent or websites such as Zoopla and Rightmove. These and other similar websites allow you to see the selling price of houses in your chosen area. Don’t forget to check out the prices of houses in nearby neighbourhoods; a few miles further out of town could get you much more house for your budget.
Once you have a property in mind it’s time to do some affordability checks with an online mortgage calculator. Nearly every mortgage lender has an online mortgage calculator, so we’d recommend using the one from your current lender. Whilst the results that they show are only an estimate of your mortgage cost, you should be able to establish if you will be able to afford the kind of property you are interested in.
Step 3: Don’t forget to consider deals from other lenders
There’s no doubt that it is easier to keep your mortgage with your existing provider if they allow you to transfer it to another property. That doesn’t mean that you should overlook the benefits of moving your mortgage to another provider altogether.
This process is known as remortgaging and it could potentially save you large sums of money if you are able to find a better deal than the one you are currently signed up to.
Again, you should do your homework online by researching the available mortgage rates and seek professional advice from an independent mortgage advisor who has advanced knowledge of not only the types of mortgage that are suitable for you but whole mortgage market and the offerings from all financial institutions. An independent financial advisor will be able to tell you if there are better deals out there than your existing lender is offering and help you to weigh up what is best for you.
When considering remortgaging don’t forget to take account of any fees that may be involved. There will be arrangement fees for the new mortgage and there may also be early exit fees attached to your existing mortgage. As before, make sure you don’t get any unwelcome surprises by finding out before you commit.
Step 4: An opportunity to change your mortgage type
Whether you choose a new lender or opt to stay with your existing mortgage provider, you can take the opportunity of moving home to move your mortgage to a different type. For example, you could move from a standard variable rate mortgage to a fixed rate mortgage vice versa.
Step 5: Completing the process
The process of completing the application for a new mortgage or to transfer your existing mortgage to a new property is very much the same as it was when you took out your first mortgage.
Since, in most cases, you will be increasing your amount of borrowing, you should expect to go through affordability checks and if you are moving to a new mortgage provider you will be subject to a credit check. You can also expect the lender to carry out a survey on your new property to ensure that it is valued correctly.