logo

Property

Can I move my mortgage?

Posted on: Wednesday, November 23, 2016


Can I move my mortgage?

Moving house can be a stressful time but, for buyers who already have a mortgage, it doesn’t necessarily mean ripping up the deal and starting again.

 

Most mortgages are portable, which means that they can be transferred from a borrower’s current property to their new home when they move.  This can be particularly useful for homeowners who want to avoid paying Early Repayment Charges (ERC’s) on their existing mortgage, which can amount to thousands of pounds.

 

Those who have secured a competitive interest rate may also find it more beneficial to port their mortgage to a new property rather than taking a new deal.

 

Staying with the same lender can still throw up its challenges however, so the ability to move the mortgage to a new property is by no means guaranteed. A lender will still carry out an assessment before approving the loan, and this will be based on their current criteria.

 


 

The Mortgage Market Review of 2014 saw more focus placed on affordability, with lenders asking more questions and examining incomings and outgoings in greater detail. As a result, some may be surprised to find they are turned down by their existing lender, even if they are not asking for any additional borrowing.  Those whose circumstances have changed since last applying, for example becoming self-employed or starting a family and paying for childcare, may also discover that they no longer meet the criteria of their lender. 

 

For many, moving home means buying a more expensive property, and asking for a top-up on the mortgage. A lender might not be willing to lend the additional funds however, leaving borrowers with little choice but to pay a penalty to move elsewhere. If they are happy to lend, then it could be on a different and potentially higher rate.

 

Whatever the options are, it is still important to take the opportunity to review the current market and compare new deals with those on offer through the existing lender. With rates over the last few months coming down to historic lows, it could even make financial sense to pay a penalty and take out a new loan with a different provider, but it’s vital to do the sums first to make sure this is the best course of action.

 

If you are considering moving home and need mortgage advice, then please speak to the Guild Mortgage Service provided by fee free L&C Mortgages.

 

You can contact L&C mortgages on: 0800 073 1945

Blog

The Guild secures ESTAS Award for Best Agency Network for the fourth consecutive year

Tuesday, October 22, 2024

The Guild of Property Professionals has once again proven its excellence in the property sector,...

Read More

The spookiest places to live in the UK

Thursday, October 17, 2024

The UK has such a rich and varied heritage, so it comes as no surprise that spooky stories...

Read More

Opportunity knocks for record number of Guild Members at The ESTAS 2024

Friday, May 24, 2024

The Guild of Property Professionals has once again shown the strength of their network with 100...

Read More

Read What Our
Customers Say

"

Having recently Sold my house with Philip Martin Estate Agents I cannot praise the whole experience enough. From the first telephone conversation to the last it has been impressive. Professional, Polite, Guiding, Encouraging. I do need to mention Jack Loader, no question or query was too much trouble, making the selling process a pleasure. 

"

Having recently Sold my house with Philip Martin Estate Agents I cannot praise the whole experience enough. From the first telephone conversation to the last it has been impressive. Professional, Polite, Guiding, Encouraging. I do need to mention Jack Loader, no question or query was too much trouble, making the Selling process a pleasure. Totally stress free.

"

James and his team handled a complex sale (house and adjacent land owned by a third party) with great professionalism and innovation and determination to secure our sale. He was also cognisant of our time scales in that we had not secured an onward purchase or rental property. James is an extremely approachable agent who always worked with us to successfully achieve our goals and certainly went ‘the extra mile’ when required. We cannot recommend him highly enough.

"

"We were so pleased with all the correspondence with Phillip Martin and you all certainly delivered a very professional and friendly service. We would particularly like to thank you for all your personal correspondence with Mrs. Dianne Jones. It went above and beyond and we are truly grateful.  As I mentioned before we have only ever bought two houses and they were both through Phillip Martin. We will certainly use you guys in the future!"

"

Very efficient and personable service helped us find a perfect place. Trustworthy and effective. Thank you.

"

Dear Jack, I have moved into my new bungalow and it is very nice. I just wanted to take this opportunity to thank you for all of your efforts on my behalf. You have behaved rapidly and helpfully to assist me with all of the problems that arose for me in one of several difficult projects at once. Thank you very much.

How Much is Your Property Worth?

How Much is Your Property Worth?

To find out how much your property is worth in the current market, get in touch with us today!

Book a Valuation