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Home Movers

What is the best mortgage if you are moving home?

Considerations

Moving home is different to buying your first property. Obviously, you will have to sell your home before you can buy another. The ideal scenario is to buy and sell on the same day, and this is usually what happens. Unless you have substantial savings it is seldom possible to buy before you have sold, although, if you rent temporarily, you might sell before you buy.

The mortgage

If your present mortgage is portable, and competitive, you might just port it across to your new property. However, it may not be competitive, or may not be for a high enough amount. In that case, a brand new mortgage could be recommended. An exception to this is where there are prohibitive early repayment charges on your current mortgage. In these circumstances it may be necessary to port your mortgage and consider how best to raise further capital if that were needed. We can assess the best course of action for you to ensure you get the best value for money.

Practical concerns

It is important to look at future mortgage costs to ensure that it is affordable. This would be particularly important if it were a larger mortgage, or if you were taking on a second property without selling the one you currently reside in. For those who do not sell their present home, the purchase of a second home will incur an extra 3% stamp duty land tax. Lenders will also have more strict affordability rules if you are buying a second property, and the loan to value will be limited.

By speaking to us, we can make an overall assessment before you start applying for a mortgage, so that you have a good idea of what is possible. We can also recommend a good solicitor, and will generally ensure everything goes as smoothly as possible. Of course, sourcing the best mortgage for you, and finding the best solutions, is at the heart of everything we do.