Moving Home

Don’t let the thought of moving house and changing your mortgage overwhelm you. Read our comprehensive guide on the subject and contact us if you need any help. We’re here to make the process as easy and stress-free as possible.

This article covers the process of moving house and how it affects your mortgage. We’ll explain all you need to know, from understanding your rights under your current loan agreement to what happens when you move home and change lenders. Whether you’re a first-time buyer or an experienced homeowner, we can help make the transition smoother. Read on to find out more:

What to Consider When Moving House and Changing Mortgage

  1. Understand your rights under your current mortgage agreement.
  2. Get professional advice from a mortgage broker.
  3. Make sure you access the ideal rate and most suitable product.
  4. Consider the costs involved – the cost of removal vans should be factored in too.
  5. Decide if you want to change lenders or stay put.
  6. Calculate how much money you need to secure a new mortgage – staying put will most likely be cheaper, particularly if you can ‘port’ your existing product to avoid early repayment penalties – this is where you can take your existing rate over onto the new mortgaged property with the same lender, to avoid paying penalties

Understanding Your Rights Under Current Loan Agreement

When you move home and change your mortgage, it is important to understand your rights under the existing loan agreement. This includes knowing whether or not you can change lenders without penalty or if there are any conditions attached to changing lenders. You should also be aware of any associated fees you may have to pay and ensure that the new loan terms are agreeable to you. Your legal rights will depend on your loan type and your lender. Understanding these aspects is essential before changing to a different mortgage lender. It would be best if you spoke with a professional experienced in dealing with such matters. This will iron out any issues early on in the process.


Researching New Lenders and Products

When it comes to selecting a mortgage, doing research is essential. First, it’s important to compare the different lenders and products available to find the right deal. Websites belonging to various lenders may feature reviews from past customers. In addition, it’s worth checking to see what other clients have experienced.

The fees associated with different mortgage products should also be considered when deciding which lender to use. The terms associated with each product should also be carefully considered before you sign any documents or enter into any agreements.

How Does a Mortgage Work when You Move House

If you have opted to go with a different lender and have redeemed your old mortgage, your new mortgage lender will write to you to confirm your monthly payments. However, it may be the case that no payment will be due for several weeks.

You may still pay double for the first payment. However, you could be charged slightly more for the first month. This is because some lenders add the shortfall to the end of the mortgage, meaning you make an extra payment that has been added on. Either way, the additional weeks without payment will be accounted for, so there is no need to worry.

Mortgage Advice..

Thinking of getting a mortgage? Our experienced team of skilled mortgage advisers are here to offer the essential guidance you require. Relying on our comprehensive understanding of the mortgage market, we’ll ensure you secure the perfect mortgage to suit your specific situation. 

Synergy financial advisers will:

  • Work out what you can afford and what it will cost to redeem your old mortgage.
  • Search our panel of over 180+ lenders to find the most competitive deals.
  • Recommend which mortgage ideal fits your needs and circumstances
  • Help you with the entire application process from submission to completion.

You may wish to consider reducing the size of your mortgage by paying some of it off. You can do this before committing to a new product without penalty if, of course, your current rate is redemption free.

Perhaps you’d prefer to keep your savings intact and instead take out an offset mortgage – the interest charged on the loan reduces as you forfeit any interest due on your savings.

This will reduce the overall term and the loan will be paid up sooner, saving you an attractive sum of money.

You will need to consult with a Synergy financial who will search for a lender who offers this facility.

Struggling to sell?

We can still assist if you need to move home but are struggling to sell your existing property. Many lenders will allow you to let out the property you currently live in on a ‘consent to let’ agreement. The generated rental income can be used to repay the existing mortgage.

Your affordability will be calculated by factoring in both the existing and new mortgage payments. Lenders will only consider the rental income from your existing residential property if this has been in place for some time and can be evidenced via tax returns.

Raising enough deposit

If you’re struggling to raise the deposit for a new property, we may be able to switch your borrowing over to a ‘Let to buy’ mortgage. Again, there are specialist lenders who will happily accommodate this type of transaction. Put – you rent out the existing property and change the loan to a Buy to Let mortgage – release further equity to use for your deposit on the new property – this will be on a standard residential, regulated mortgage.

Staying where you are

If it’s a larger property you need, you could seek planning permission and add an extension. You can fund the project by taking additional borrowing, known as a further advance. Again this will come down to affordability – after all, your monthly payment will increase.

Final Thought

Are you moving house or extending the existing one? These are significant decisions that Synergy financial  can help you make sensibly. They are here to help you prepare for that next chapter in your life. So dream big, and we’ll help you achieve those dreams!

FAQs: Moving Home

Most frequent questions and answers about moving home

Yes, it is possible to move your mortgage from one house to another. This process is known as a “portable” mortgage. You will need to qualify for the new loan, and you may incur additional fees or costs associated with the transfer. Your lender can provide more details on what is involved in transferring your mortgage to a different property.

Yes, you can move house on a fixed term mortgage. However, depending on your lender’s terms and conditions, there may be additional costs associated with transferring the mortgage to another property. You will also need to qualify for the new loan and ensure that all of your financial obligations are met in order for the transfer to take place.

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