Mortgage options when you move house

Mortgage options when you move house

Porting Your Mortgage

Many mortgages are ‘portable’, which means you may be able to transfer your current mortgage product to a new property.

Even if your mortgage is portable in theory though, you may still be blocked.

Porting is a great flexible feature but there are no guarantees your lender will actually permit you to do it – and you could end up borrowing at an uncompetitive rate to boot.

Here’s why porting might not work out or be the best option for you:

  • You have to reapply for your mortgage and may not qualify. When you ask your lender to ‘port’ your mortgage, you in effect have to reapply for that deal. Unfortunately, there’s no guarantee that you’ll qualify even though you did the first time you took out the mortgage. You may struggle if circumstances have changed, eg, you’re now self-employed, you earn less or you have more debt and/or outgoings.

    Or you might not have changed at all but your lender’s criteria has, so even though you got your first mortgage without hassle, it doesn’t mean the same will happen again. And if you haven’t made all your mortgage payments on time, chances are the lender will refuse in the hope you leave them.

  • You may not be able to borrow more. If you move to a more expensive property, you may need to borrow more funds, but your lender may not allow this if you are already close to the maximum it will lend you.

  • If you do borrow more, you could end up with two loans. If you move to a more expensive property, as many people do if they’re looking for a bigger home, you may need to borrow additional funds. If it is willing to lend, the lender may insist that the additional borrowing goes on another mortgage product, which is likely to involve an arrangement fee and possible a higher rate.

    If you do end up on two mortgage products and their initial periods finish on different dates, be aware you may revert to a high rate on the one that ends the earliest.

  • You could end up borrowing at a poor rate of interest. If you can port and are able to borrow more, remember that you’re tied to one lender so you’ll have little choice other than to choose from the rates on offer to you.

Early repayment charge

If you’re still within your introductory offer period (for example, part way through a two-year fix) you will almost certainly have early repayment charges to pay.

These are usually 1-5% of the outstanding debt, depending on how long you have left of your intro deal. On a £200,000 outstanding debt for example, the early repayment charge will likely between £2,000 and £10,000.

Exit fee

When you pay off a mortgage (including when you re-mortgage to a new lender – as the new provider pays off the debt on the old deal) you normally pay an exit fee, depending on the lender, which is usually a few hundred pounds.

It might be called a deeds release fee or a final fee, but you may have already paid it upfront when you took out the mortgage, so do check.

You may have to pay an early repayment charge to your existing lender if you remortgage.
Frequently Asked Questions

FAQs

We’ve collated a listed of common questions and answers asked by Moving Home mortgage seekers, for your convenience.

  • What happens to my existing mortgage when I move home?

  • What does porting a mortgage mean?

  • Can I keep my existing mortgage and get another?

  • Does my credit score affect my mortgage rate?

  • What comes first, mortgage or find a property?

  • What is a “Mortgage agreement in principle”?

  • How long should I set my mortgage term for?

  • What paperwork will I need to apply for a mortgage?

Moving Home FAQs
Expert Advice

What We Do

Yorkshire Rose Mortgages can help you get the best mortgages deals that meet your needs.

  • We review your financial situation and understand your personal circumstances.

  • We research the market and collate the best deals that meet your needs.

  • We save you time, money and reduce the stress of securing a mortgage.

  • Because we are not tied to one lender, we’re able to offer more flexibility and choice.

  • We take care of the application process for you.

  • We’re here for you even after you receive your keys and can help with mortgage protection.

About Yorkshire Rose Mortgages
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Your home may be repossessed if you do not keep up repayments on your mortgage.