Home Mover Mortgages with a Pre-Approval in 30 minutes

A home mover mortgage is where you are moving home. You’re the owner of a property and you’re going to buy a new home to live in. You’re selling your old property and getting a mortgage for the new purchase.

What types of properties can be purchased with a home mover mortgage?

Any property as long as it meets that lender’s criteria for acceptable properties.

What is porting?

Porting is where you’re taking the mortgage that’s on your current property, at its current interest rate, and moving it to a new property. So if you have a really good interest rate of say 2%, which is brilliant in this current climate, you could be able to pick it up and move it to the new property.

If you have to do any further borrowing, that would be done at today’s rate. So, if you have a mortgage for £200,000, you port it to the new property and then if you need an extra £50,000, that further amount would be at today’s interest rate. 

The advantage of porting is you get to keep a good deal. It keeps your costs down. You wouldn’t have to pay an early redemption charge to port. The disadvantage is if the lender you’re currently with won’t lend you the amount you need for the new property. In that situation you’d be speaking to your mortgage advisor to work out the best approach. 

Two things to be aware of when porting is that you need to meet your lender’s income and affordability criteria, plus credit criteria. The property also needs to meet their criteria. So it’s not a given. It’s not automatically going to be approved.

Are all mortgages portable or are there limitations to this feature when moving home?

No, not all mortgages are portable – it will depend on your circumstances and the details of your current mortgage. There are some people who may have a Co-ownership mortgage at the moment, the terms of which may stop them from porting it to a new property. People who are on the standard variable rate at the moment would not be able to port either.

But generally most mortgages are portable and there are benefits to moving your deal with you – which I’m sure we will cover in a later question.

What are early repayment charges and how can they impact my mortgage?

An early repayment charge is a penalty for ending your mortgage deal before its time. For example, if you’re on a five year fixed rate and you wanted to clear that mortgage after two years, you would be expected to pay an early repayment charge.

How can I keep my existing mortgage deal when moving home? What are the benefits of doing that?

To keep it you would speak myself. We will look up the details of your existing mortgage: how much you have left outstanding, what interest rate you’re on and when that rate is due to expire.

We’ll also have a look at any early repayment charges payable to get out of that deal as well. The benefit of keeping your mortgage is that you avoid paying the early repayment charge. You can keep a preferential rate if it’s better than those currently available, and then all you need to do is take a top-up to the outstanding balance to complete the purchase, based on whatever rates are available at the time.

What are the benefits of using a mortgage broker like Tyrone Mortgages? How can you help me find a suitable deal?

A good mortgage broker will know the marketplace, which makes for a smoother process during that application period. You would have less hassle finding the right mortgage than if you try and do it on your own.

We will save you a lot of time. We know which lenders to place deals with and who would be suitable for your needs. Plus, we could potentially save you thousands of pounds by getting you the right product.

What is the maximum amount that can be borrowed on a home mover mortgage?

The maximum amount is determined by your individual affordability. The lender will have a look at your income and expenditure and work out how much you may be able to borrow.

If your income is over a certain threshold you may be able to get up to five or 5.5 times your income, depending on other circumstances such as the makeup of your family and your liabilities, such as existing credit commitments.

What is an Agreement in Principle? How does it differ from a mortgage offer when moving home?

An Agreement in Principle or Decision in Principle are both the same thing. It involves a lender running a credit check on you to assess your basic suitability to borrow.

A formal mortgage offer is what you apply for once you’ve had an offer accepted on a property. It’s when we would supply your payslips, bank statements and other documents to back up what you’ve told them. The lender will assess these documents and make sure everything is correct and fits their criteria. They’ll conduct a valuation on the property and then issue the formal mortgage offer.

So, an agreement in principle is an indication that they are happy to lend and a formal mortgage offer is confirmation that they will lend.

Can I move home in the middle of my mortgage deal?

The simple answer is yes, but what that would look like depends on your circumstances. It might involve porting the mortgage as we’ve discussed, or potentially paying an early repayment charge and taking out a new deal. But yes, you can move in the middle of a mortgage deal.

Can I switch to a new mortgage lender when moving house? What are the potential benefits of doing so?

Yes, you can, and a good broker will determine the right lender for your personal needs and circumstances. Some lenders are happier to lend on different properties than others – and that’s where our expertise really comes in. We make sure it’s the right fit for you.

Some lenders may allow higher amounts of overpayments that might be beneficial to your circumstances. Or they might offer better terms than your existing lender. You may be able to borrow more to fulfil the purchase.

A remortgage quite simply is the process of getting a new mortgage on the house that you currently live in. So it’s slightly different from moving.

With a remortgage you’re usually trying to find a better deal, or potentially borrowing some more money against the property to carry out home improvements or repay some debts. But it’s all focused on the property you already own and that you plan to remain in.

What are the eligibility criteria for a home mover mortgage?

It’s the same criteria as any mortgage you’re looking at, whether that’s a purchase for First Time Buyers, a remortgage or anything like that. The criteria would be the same.

All lenders have their own criteria, so it’s up to us as brokers to make sure we’re picking the right one for you.

What is the minimum deposit required for a home mover mortgage?

The minimum is 5% of the purchase price, depending on the lender and the type of property. Some properties, such as flats, may require a 15% deposit, depending on the lender.

What is the duration of a home mover mortgage?

As with any standard mortgage it really depends on your age and the lender’s maximum wage on an application. It’s also about your budget and how much you’re prepared to pay per month.

It’s not always about getting the longest deal for the cheapest monthly payments. Sometimes it’s about maximising your affordability to reduce the term as well.

What is the process for applying for and receiving a home mover mortgage? How long does it typically take?

It’s exactly the same process as applying for any other mortgage. We just need to know about your needs and circumstances, then have the paperwork to back up what you’re telling us in terms of income and expenditure.

We’ll then find the right deal for you and apply to the mortgage lender. They will check that they’re happy with your paperwork and then instruct a valuation on the property. As long as the property is suitable security to lend against, they will issue a full mortgage offer.

Then it’s over to the solicitors to take you through to legal exchange and completion. The timelines then depend on how many people are involved in that property chain.

Can I get a mortgage as a home mover if I’m self-employed?

Yes, definitely. There are lenders that specialise in self-employment. Speaking to a mortgage advisor is key in my personal opinion – we can go to lenders that take a different combination of your income. 

If you’re a sole trader, they’ll take your profits for the year, but if you’re a limited company each lender might take a different mix. Some take dividends and salary, some take profits after tax and salary, some take profits before tax and salary. 

A mortgage advisor will know exactly how much you can borrow. At Montgomery Financial we have specialist software – we key all of your income and expenditure details into it and it sends that information off to the lender’s affordability calculators. It then pings back exactly who will lend you what. 

It even gives us screenshots of what’s been fed into the lender’s calculator. Because of the complexity of self-employed clients we can input all of these different streams from their accounts, then we know with confidence what each bank will lend. We relay that information to you so you have total confidence.

Your home may be repossessed if you do not keep up with your mortgage repayments.