Moving House
Mortgages
Moving to a new home? Here’s everything you need to know about moving house mortgages. Learn all about the process, what options you have and how to find good deals. Find more information in our FAQ section below.
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Moving house mortgage advice
Moving to a new home can be exciting, especially if you are looking to upsize, searching for your dream home, or moving to an area where you’ve always wanted to live. However, it can also be a very stressful time, especially if you are uncertain on what you need to do when looking for a moving house mortgage. Some people can be put off moving home due to the worry around finding the right mortgage for them.
With Ayla Mortgages, you can benefit from our expertise making it simple and fast for you to get a mortgage arranged for your new home and leaving you to focus on the more fun aspects of moving. We are a mortgage broker company in Dorset and have helped many people across the whole of the UK to move their mortgage.
What to consider for a moving house mortgage
There are a few things to consider when you are looking at a mortgage in order to move home. You may want to consider whether you want to keep your existing mortgage or get a new one. Consider also what kind of property you are looking to buy, as this could affect the type of mortgage you will need. You might find that the property type limits your options. If you choose a new mortgage, bear in mind how much your new mortgage will be, in terms of loan amount and whether or not you will need to save up additional money for a deposit.
Remember to bear in mind that you are likely to be part of a mortgage chain when you are moving house. This is because whoever is buying your old home will likely be arranging a mortgage as well. You will also likely find that the person you are buying your new home from will also be getting a moving house mortgage for their new property. This can make the process long-winded and complex, which is a big reason to use an experienced broker who is used to navigating this kind of situation.
Having a mortgage out on your current home can make the selling and buying process more complicated, but we’re here to help you get your moving house mortgage sorted.
Finding a new mortgage or porting your current mortgage
There are two main options when you want to move to a new home with a mortgage. Either you can approach a new lender to get a new mortgage, or you can move your current house loan across to the new property with a process called porting. Both of these have their upsides and limitations. If you are unsure which is better for you, get in touch and will be are more than happy to guide you through the process.
Porting your mortgage to another property
Porting is the process where your current mortgage is moved over from your old home to the new home you are buying. This can be an appealing prospect as it keeps the process simple and relatively easy, plus you can stay with a mortgage lender you are happy with.
To complete porting, your current mortgage is technically “paid off” by the money you get from selling your old home. Following this, a new mortgage agreement is offered, which is the same as your previous offer.
Why port a mortgage?
You might want to port a mortgage if:
- You have a competitive rate and don’t want to lose it
- Your current mortgage has early repayment charges that you would rather avoid
When can you not port a mortgage?
As mentioned above, porting technically means applying for a new mortgage. You might find that you cannot port your mortgage if:
- Your income no longer meets the lender’s requirements for being offered the same mortgage
- You are now self-employed and cannot provide income proof that is sufficient for your lender
- The value of the new house is too high for your lender’s availability
- The property is a non-standard construction or newbuild property that your lender does not lend on
- You need a bigger loan and your current lender is not able to lend you the amount needed due to low affordability on your income
Changing to a new mortgage for the new property
The more common solution when moving house is to switch to a new mortgage. This would mean that your current mortgage is repaid by the funds from selling your old house and then you start a new mortgage agreement with your new lender.
Why get a new mortgage?
The main reasons why you might want a new mortgage are:
- You can often find a better deal if you get a mortgage elsewhere, taking advantage of introductory offers and fixed interest rates
- Your old lender might not let you port your current mortgage – this is especially the case for non-standard properties, where you might need to use a specialist lender in order to get a mortgage
Why might you not want to get a new mortgage?
Since you are effectively applying for a new mortgage in both cases, many of the same considerations apply to both a new mortgage and porting. This means that you might struggle to get a new mortgage if:
- Your income and affordability calculations do not cover the loan size you want
- You have additional debts that hamper your affordability
- You lack enough of a deposit for the new property
You might want to port a mortgage if:
- You have a competitive rate that you want to keep
- Your current mortgage has early repayment charges that you would rather avoid
As mentioned above, porting technically means applying for a new mortgage. You might find that you cannot port your mortgage if:
- Your income no longer meets the lender’s requirements for being offered the same mortgage
- You are now self-employed and cannot provide income proof that is sufficient for your lender
- The value of the new house is too high for your lender’s availability
- The property is a non-standard construction or newbuild property that your lender does not lend on
- You need a bigger loan and you current lender is not able to lend you the amount needed due to low affordability on your income
The more common solution when moving house is to switch to a new mortgage. This would mean that your current mortgage is repaid by the sale of your new house and then you start a new mortgage agreement with your new lender.
The main reasons why you might want a new mortgage are:
- You can often find a better deal if you get a mortgage elsewhere, taking advantage of introductory offers and fixed interest rates
- Your old lender might not let you port your current mortgage – this is especially the case for non-standard properties, where you might need to use a specialist lender in order to get a mortgage
Since you are effectively applying for a new mortgage in both cases, many of the same considerations apply to both a new mortgage and porting. This means that you might struggle to get a new mortgage if:
- Your income and affordability calculations do not cover the loan size you want
- You have additional debts that hamper your affordability
- You lack enough of a deposit for the new property
How Ayla Mortgages can help you move
An experience mortgage consultant will help you find a great moving house mortgage. Whatever your exact needs, we can help. Whether you simply want to get better rates on your new mortgage or whether you need a specialist mortgage, we have experience helping all kinds of cases.
Using an expert mortgage broker based in Bournemouth and Poole like Ayla Mortgages gives you access to lenders who do not work directly with homebuyers. We can help clients choose from a wider range of options, often getting a better deal and preferential terms than you would elsewhere. This can also save a lot of time and stress during the house-moving process.
We also have experience with non-standard and specialist mortgages. There are cases where we can help people get mortgages even after they have been turned away by high street lenders. Whether you are self-employed or are buying a non-standard property, we have the expertise and experience needed to help you.
Our moving house mortgage process
Moving house mortgages can be difficult to arrange due to the nature of trying to end one mortgage and start another. However, choosing to go with an experienced mortgage broker like Ayla Mortgages can help simplify the moving house process for you.
- Initial advisor meeting – During the first meeting, our advisor will ask about your needs so that they can search for the right mortgage product for you. Once they have found suitable options for you, they will get back in touch and help you select your preferred option.
- Decision in Principle – Once you have chosen a mortgage product, your advisor will start the process to get you a Decision in Principle (DIP). This is an agreement that the mortgage lender will approve your mortgage as long as the checks on affordability, credit and property go well.
- Making an offer – Once you have a DIP, you will be in a good position to put in an offer on the home you want to buy.
- Pre-application and submission – We will go through what documents you need to provide to the mortgage lender.
- Getting an offer and conveyancing – Once the lender makes a formal offer, the legal process of conveyancing starts. This is usually handled by a conveyancing solicitor. We will continue to handle the process for you, including communicating with the solicitor, keeping everything running on time, and ensuring you are kept up to date with the process of your purchase.
- Exchange and completion – The contracts for the property are exchanged and you pay the deposit. On the agreed-upon date, the money gets transferred and you own the property.
What are the additional house loan costs when moving to a new house?
There are some additional costs you should consider when you are looking at moving house, such as:
- Stamp Duty – This is a cost you have to pay on UK properties that are over a certain price, which can be calculated beforehand.
- Mortgage Valuation – Lenders will want to get the property valued to check that it is a suitable investment for them
- Conveyancing Fees – You will need a solicitor to handle the conveyancing stage of the process
- Broker Fee – Your broker fees should be discussed during your initial meeting with one of our advisors
- Home Insurance – You will need building insurance before you will be given a mortgage on a property
- Removal Frees – You will either need to move your belonging yourself or may have to pay for professional home-movers / removals
- Product Fees – For larger mortgages and for most mortgage ports there are often product fees
- Early Repayment Charges – This is a charge that most lenders require if you choose to pay off your mortgage before end of the introductory period
- Booking Fees – A one-off application fee to reserve your mortgage rate while it is being processed
- Lender’s Arrangement Fees – This can be a flat fee or it might be a percentage of the loan value, that covers the cost of organising the mortgage.
Our simple, straightforward process helps you every step of the way. Get started with Ayla Mortgages today!
Moving house mortgages can be difficult to arrange due to the nature of trying to end one mortgage and start another. As a top mortgage broker in Bournemouth, we have a simple process, fully led by one of our expert advisers.
- Initial adviser meeting – During the first meeting, our adviser will ask about your needs so that they can search for the right mortgage product for you. Once they have found suitable options for you, they will get back in touch and help you select your preferred option.
- Decision in Principle – Once you have chosen a mortgage product, your adviser will start the process to get you a Decision in Principle (DIP). This is an agreement that the mortgage lender will approve your mortgage as long as the checks on affordability, credit and property go well.
- Making an offer – Once you have a DIP, you will be in a good position to put in an offer on the home you want to buy.
- Pre-application and submission – We will go through what documents you need to provide to the mortgage lender.
- Getting an offer and conveyancing – Once the lender makes a formal offer, the legal process of conveyancing starts. This is usually handled by a conveyancing solicitor. We will continue to handle the process for you, including communicating with the solicitor, keeping everything running on time, and ensuring you are kept up to date with the process of your purchase.
- Exchange and completion – The contracts for the property are exchanged and you pay the deposit. On the agreed-upon date, the money gets transferred and you own the property.
There are some additional costs you should consider when you are looking at moving house, such as:
- Stamp Duty – This is a cost you have to pay on properties over a certain value in the UK, which can be calculated beforehand.
- Mortgage Valuation – Lenders will want to have a valuation on the property to make sure that it is a suitable investment for them
- Conveyancing Fees – You will need a solicitor to handle the conveyancing stage of the process
- Broker Fee – Your broker fees should be discussed during your initial meeting with one of our advisers
- Home Insurance – You will need building insurance before you are granted a mortgage on a property
- Removal Frees – You will either need to move your belongings yourself or may have to pay for a removal company
- Product Fees – For larger mortgages and for most mortgage ports there are often associated product fees
- Early Repayment Charges – This is a charge that most lenders require if you pay off your mortgage before the introductory period ends
- Booking Fees – A one-off application fee to reserve your mortgage rate while it is being processed
- Lender’s Arrangement Fees – This is either a flat fee or a percentage that covers the cost of organising the mortgage
Our simple, straightforward process helps you every step of the way. Get started with Ayla Mortgages today!
Moving house FAQs
Here you’ll find comprehensive answers to some commonly asked mortgage questions. If you have a question that isn’t answered here, please contact us and we will be very happy to help you
It usually takes around 4 to 8 weeks to change to your new mortgage when you move home. However, it could take longer if there are any complications such as chain issues, deposit problems, or if your mortgage provider finds something in the latter stages of the application that you have not revealed earlier.
Yes, you will still need to pay a new deposit on your new property. The deposit will usually come from selling your old house, or you could pay a cash deposit.
Since porting your mortgage still means paying off your current mortgage and starting an identical one, you will still need to pay a deposit. Usually this deposit will usually be from the funds you get when you sell your old house, but you could put down a cash deposit if appropriate.
In the case where you want to keep your fixed rate mortgage when you move, you should talk to your lender and ask if you can port the mortgage to your new property. If you cannot, we can help you find other lenders who can offer a fixed rate mortgage for your new property. Bear in mind that if you are near the start of a fixed interest rate mortgage, you might have to pay Early Repayment Charges if you change to a new mortgage provider.
If you are looking at a property that is less expensive than your current home, then you can sometimes downsize your mortgage to cover this less expensive property. You will still have to pay a deposit. Also, any Early Repayment Charges will be based on the value of the original mortgage, not the value of your new property.
Yes, you will likely need to get a different home insurance policy on your new property. Getting appropriate home owners insurance is a requirement for having a mortgage, so you should arrange this before you move. You might be able to change your policy with your current insurer, but you might have to start a new policy.
Most lenders will have different age limits for accepting new mortgage applications. If you are worried about getting a mortgage due to your age, get in touch to see how we can help you get a suitable mortgage to enable you to move.
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