Home Mover
What is a home mover?
You are a Home mover (sometimes also called a Next Time Buyer) if you currently own your own property and are looking to move home.
Home movers have the experience of buying their current property, but it is still more important than ever to get expert mortgage advice. Your circumstances are likely to have changed since you bought your existing home, and you are likely to be borrowing a larger mortgage in order to buy your next property.
How we can help
Our friendly advisers can talk you through the process of selling your current property and buying your new home. They can help you understand the maximum price you can afford to pay for a new property and also how much the monthly mortgage payments are likely to be. They will also confirm whether or not you should stay with your existing lender.
The first step is to get in touch with us and book an appointment. Our service is completely free at this stage. We will only charge our £249 fee if you ask us to handle your mortgage application.
Are you eligible?
Our advisers can let you know how much you are able to borrow by checking the affordability calculators of all the main lenders. We will confirm who is likely to be the most suitable lender for you and can obtain an “Agreement in Principle” (AIP) or “Decision in Principle” (DIP) on your behalf. You are then able to prove to any estate agent that you are able to obtain a mortgage and have passed the lender’s credit score and initial checks.
In order for us to obtain an AIP or DIP on your behalf, we would need to:
- Complete a full fact find to collect all your relevant information.
- Obtain evidence of ID and proof of address from all applicants*
- Obtain evidence of income from all applicants*
*Your adviser will confirm exactly what documents they require once they have completed the fact find and know your circumstances
Frequently Asked Questions
How much can I borrow?
- It is important to be realistic when calculating how much you can spend on your desired home.
- On average, lenders will allow you to borrow 4 to 5 times your combined income.
- Having a budget planner will help you ensure your mortgage is affordable.
- Your advisers will run a series of affordability checks to confirm how much various lenders may be prepared to let you borrow.
What is the difference between porting vs mortgaging with a new lender?
- Porting is where you move your existing mortgage over to your new property and simply continue paying it as normal.
- With porting, you will still need to apply for the mortgage and assuming the new property value is higher, you will be required to take out an additional mortgage to cover the difference.
- Porting is often the most cost-effective option – if you’re tied into your current mortgage, going down this route often means your lender will waive any early repayment fees.
- You could secure a mortgage with a new lender safe in the knowledge that you’ve selected the best solution for you from across the market.
- Going down the new lender route can lead to early repayment charges (ERC) for cancelling your existing mortgage, so do keep this in mind when weighing up both options.
What Early Repayment Charges (ERC) could I face?
- When changing any mortgage to a different lender, this process is classed as remortgaging.
- With most mortgages, there will be penalties for early repayments for ending the agreement before the contracted end date.
- Each scenario will be different, so we recommend checking with your current mortgage provider before taking any action.
How can I save money when I move my mortgage?
- When on a Standard Variable Rate mortgage, you won’t be charged for early repayments if you leave the deal.
- If you’re currently on a fixed-rate mortgage, it could be worth waiting until you’re on a Standard Variable Rate mortgage.
- A fixed-rate mortgage often lasts between two and five years, with some going up to ten years.
When do I need to apply for a mortgage if I'm moving?
- It is recommended to look at switching your mortgage around three months prior to your current deal ending.
- Starting the process three months in advance will give you time to find the best deals and begin the application process.
How much deposit will I need to put down?
- You are able to see which deals you might qualify for based on the size of your deposit – this is known as the mortgage “loan to value” (LTV).
- Think of it this way… if you’re buying a property valued at £100,000 and put down a deposit of £5,000 – you will be looking at borrowing 95% of the property value.
- Under some circumstances, you may be required to place a larger deposit. For instance, if you’re retaining your current home with plans for letting it to tenants upon completion of your new purchase.
- Our friendly advisers will confirm this to you once the full facts are known.
What should I know about household budgets?
- You will no doubt have remembered to budget for expenses such as council tax, gas and electricity bills, boiler servicing, insurance, and other home repairs.
- If you’re moving into a larger property, it can be worth checking the council tax band and assessing your new utility charges – these can quickly shoot up from under your nose.
- Your mortgage is one of the biggest debts to borrow in life, so it is important to consider the protection options that are available to you. They could be the difference in remaining in your home should certain life events happen to you.
What are the benefits of switching to a new lender?
- In most cases, a lower LTV often leads to improved mortgage options.
- When remortgaging with a new lender, they will undertake a thorough valuation of your property.
- If the property has gone up in value, your loan-to-value (LTV) rate will improve.
How does the value of my house affect my new mortgage?
- If your new property is less in value than your current one, the size of your loan will decrease alongside your monthly payments.
- If the new property is higher in value – the lender will want to know how you will cover the higher monthly payments. E.g. higher salary, property rising in value, reduced monthly outgoings.
- If the value of your house goes down, it can often land you in negative equity – this makes it more of a challenge to get a new mortgage.
What is the maximum age for a mortgage?
- The maximum age for most mortgages to be paid off is 75 years old.
- Lenders will also take into consideration your age at the end of the mortgage term, your age at the application and the length of the contract.
- For instance, you won’t be able to take out a 40-year mortgage at 36, as you be 76 before the end of the mortgage contract.
Next Steps
Get expert advice
At iMAB our advisers will sit down with you to review your current financial position and help you make realistic plans to move home.
They will talk you through your mortgage options, as well as highlighting the process and likely costs involved with selling your property and buying a new home.
Find a property
Finding your next home can sometimes be difficult so knowing your price range is essential. Our advisers can help you understand how much you can afford to pay for a new property and also how much the new mortgage is likely to cost you each month. Your adviser can also provide the estate agent with an Agreement In Principle if they require proof that you are able to get a new mortgage. More information is available in our FAQs.
Make an Application
Once the estate agent confirms your offer has been accepted, it is time to apply for your new mortgage. Your adviser will explain whether you should stay with your existing lender (if for example there is a large penalty to pay on your current mortgage product) or whether you should consider one of the other mortgage products available to you across the wider market.
They will provide you with a written illustration confirming all the key facts about the recommended product and will carefully talk this through with you. If you then confirm you would like us to apply for the mortgage on your behalf, your adviser will ask you to pay our £249 administration fee.
Get in touch
Our team of friendly advisers are on hand to answer any questions you may have.
Email Us
Would you like to give us a little more detail about your enquiry? Or would you prefer to arrange a face to face appointment? Send us an email and one of our advisers will be in touch.
Book an Appointment
You can book a video or telephone appointment via our online diary system. Or, if you would like to speak to a specific adviser, you can contact them through the Our People page. Face to Face appointments are also available. Please contact us for details.
Call Us
Do you have a quick question or would you like to arrange a face to face appointment? Give us a call and we’ll be happy to help.
