Moving Home: A Mortgage Guide for Home Movers
Moving to a new property is an exciting milestone, but securing the right mortgage is one of the most important decisions you will make during the process. Whether you are upsizing for a growing family, downsizing for a simpler life, or relocating for work, our home mover mortgage advisors at Akers Pritchett are here to help you find the right deal and make the whole process as straightforward as possible.
Should You Port Your Mortgage or Switch to a New Deal?
As a home mover, you generally have two options available to you. The first is porting, which means carrying your existing mortgage across to your new property. This can work well if you are still within a fixed rate period and want to avoid paying an early repayment charge to your existing lender. The second is switching to a new mortgage deal entirely, giving you access to the full market, including products that are only available through brokers.
Porting is not always guaranteed. Your lender will still carry out full affordability checks on the new property, and if your circumstances have changed or the property does not meet their lending criteria, your application could be declined. Our team will always review both routes before making a recommendation, so you can be confident you are on the right path.
Making the Most of Your Equity
One of the real advantages of moving home, compared to buying for the first time, is the equity you have built up in your existing property. If your home has increased in value since you purchased it, or if you have been steadily reducing your mortgage balance, you may qualify for a lower loan-to-value (LTV) band when you come to move.
A lower LTV generally opens the door to more competitive rates, as lenders view borrowers with more equity as lower risk. This is worth discussing early in the process, as it can make a genuine difference to the products available to you.
Understanding the Costs Involved
Your mortgage is just one part of the overall cost of moving. Solicitor fees for conveyancing, a survey or valuation fee, Stamp Duty Land Tax, and any arrangement fee on your new mortgage product all need to be factored into your budget. If you are not porting and are still within a fixed rate period, your current lender may also charge an early repayment charge. Our mortgage advisors will always calculate whether switching makes financial sense before recommending it.
Reviewing Your Protection at the Same Time
A house move is an ideal moment to review your protection insurance arrangements. If your new mortgage is larger than your previous one, your life insurance or critical illness cover may need updating to reflect the higher balance. Our team can talk through protection alongside your mortgage so everything is properly aligned from day one.
Ready to Take the Next Step?
Whether you are in the early stages of planning a move or already have an offer accepted, speaking to a mortgage advisor early puts you in a much stronger position. Our team serves home movers across Nottingham, Derby, and Leicester. Get in touch today for a free, no-obligation conversation about your options.
Frequently Asked Questions
Can I keep my existing mortgage when I move to a new property?
In many cases, yes. Porting allows you to carry your current deal across to your new home, which can help you avoid early repayment charges if you are still within a fixed rate period. However, your lender will still assess affordability and the suitability of the new property, so porting is not always possible. Our advisors will confirm whether porting or switching to a new deal is the better option for your situation before you commit to anything.
What if I need to borrow more because I am upsizing?
If your new home costs more than your existing property, you will likely need to borrow the difference. Your equity from your current home will typically form part of your deposit on the new purchase. Your lender will then assess whether you can afford to borrow the additional amount based on your income and outgoings. Our team will work through the numbers with you to give you a clear picture of what is affordable.
When is the right time to speak to a mortgage advisor?
As early as possible in the process. Getting a decision in principle before you start viewing properties gives you a clear budget and shows sellers you are a serious buyer. Speak to our advisors at the start of your search for the strongest possible position when you come to make an offer.
Your home may be repossessed if you do not keep up repayments on your mortgage.