Independent Home Mover Mortgage Advice
Frequently Asked Questions
Can I transfer my existing mortgage to my new home?
You may be able to transfer the product across to the new property but you will still need to make a full mortgage application which will include a credit check and normal underwriting procedures. Your lender will not automatically offer you a new mortgage if your circumstances and income have changed.
Transferring your mortgage product to a new property is called “Porting”. Porting the product and borrowing the same amount or more on the new mortgage, should mean that you do not have to pay the Early Repayment Charges (ERCs) that would apply if you changed your mortgage to a new lender. If the purchase price of the new property means you need to borrow more, then any additional amount will be on the lender’s product range that’s available at that time.
It is always worth speaking to one of our expert mortgage advisers, as it may be worth paying the ERCs if there are more suitable products in the market or if your existing lender is not willing to lend.
Can I still make changes to my mortgage, such as changing the length of the term or type of interest rate, when I move?
Yes, you would be making a new mortgage application and so are able to vary the amount you borrow or the mortgage term to suit your circumstances. If you choose not to port your existing mortgage product you may incur Early Repayment Charges and so it is important to speak to one of our advisers before making any decisions.
What are the costs associated with moving home?
How does my existing mortgage get repaid when I sell the property?
Your solicitor will request a redemption figure from your existing lender when a completion date for the new purchase is agreed. On the day of completion, the solicitor acting for your buyer will send the agreed amount to your solicitor who will then use that money to pay off the existing mortgage in full. Your solicitor will then use any remaining monies to pay their own legal fees and the selling agent’s commission, with the balance being used towards your deposit on the new property.
How do I work out how much deposit I can put down?
Once your solicitor has paid off any existing mortgage on the property, they will deduct and pay their own legal fees and the selling agent’s commission. Out of the balance you will need to budget for Stamp Duty and legal fees on the purchase, with the remainder being used as your deposit on the new property.
Depending on the new mortgage amount you have applied for (and the purchase price), you may choose to retain some of the sale proceeds for home improvements or other purposes, or you may need to put in some of your savings to increase the size of the deposit.
What should I know about household budgets?
In addition to your new mortgage payments, you will need to budget for expenses such as council tax, gas and electricity bills, and other general living expenses.
You should also budget for insurance to protect you and your family in the event that you die or suffer a serious or critical illness, or be unable to work due to an accident or ill health.
You can find more information on protection policies by visiting our dedicated Protection pages.
What is the maximum age for a mortgage?
Most lenders want the mortgage paid off before the applicant’s 70th birthday. Some lenders will go to age 75 and there are specialist Equity Release or Later Life mortgages available through iMAB that have no maximum age and are repayable upon death or being moved into long-term care. Please see our Equity Release page for more details.
What documents will I need to provide to my mortgage lender when moving home?
Lenders ask for different information and documents to support a mortgage application, but they will all need to verify your identity and where you live. They will also assess your income and how you manage your finances.
As a minimum, they will usually request your passport or driving licence, and your last 3 months’ bank statements, together with proof of your income as follows:
- Monthly wage – 3 consecutive month’s payslips and your latest P60
- Weekly wage – All payslips from the most recent month and 1 payslip from each of the previous 2 months
- Tax overviews and calculation
- Last 3 years’ accounts
- Accountant’s letter and business bank statements
How do I ensure my credit score is ready for a mortgage application?
To ensure that your credit score is good for a mortgage application, there are several steps you can take:
- Check your credit report: Request a credit report from one of the major credit bureaus (Equifax, Experian, and TransUnion). Review your report carefully and ensure that all information is accurate and up to date.
- Pay your bills on time: Paying your bills on time is one of the most important factors in maintaining a good credit score. Late payments can significantly lower your credit score.
- Reduce your debt-to-income ratio: Your debt-to-income ratio is the amount of debt you have compared to your income. To improve your credit score, try to pay down your debts and keep your balances low.
- Avoid applying for new credit. Each time you apply for credit, it can lower your credit score. Try to avoid applying for new credit before applying for a mortgage.
- Maintain a healthy credit mix: Having a mix of credit types, such as credit cards, loans, and a mortgage, can help improve your credit score.
- Be patient: Improving your credit score takes time, so be patient and consistent in your efforts.
By taking these steps, you can improve your credit score and increase your chances of being approved for a mortgage with favourable terms.
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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.
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