If you are moving house and you already have a mortgage on your current home, you might be able to transfer (port) your mortgage product to your new property.
We'll check your mortgage details to find out whether your deal is in fact portable.
Even if porting your mortgage is possible, you’ll still need to reapply and go through the same affordability and credit checks you went through to get the mortgage. You’ll also have to pay for any legal fees and stamp duty.
If you need to increase the size of your loan to buy a more expensive property, you’ll also need to meet the lender’s borrowing criteria for that extra amount, which may be more rigorous than for your original loan.
You may also have to pay a fee for arranging the new mortgage.
As an alternative to porting and increasing your existing mortgage, we may advise you to take out a new mortgage with a new provider if we can find a more competitive deal.
If your house has gone up in value since you bought it, you’ll have built up equity; the money that would be yours if you sold the house and settled the mortgage.
Having equity can increase your chances of getting a bigger mortgage for a more expensive property as you can put it towards your deposit.
If you are looking to downsize, an increase in the value of your current home could mean that you are able to take out a smaller mortgage and reduce your monthly repayments, provided your personal financial situation hasn’t changed.
If you have just started thinking about moving, it will be a good idea to speak to us to find out how much money you could borrow if you were to move, and what fees you’d have to pay.
You'll also need to know how much your home is worth.
Fixed rate mortgages have an interest rate that stays the same for a set period. This is generally between two and five years, although it is possible to get a fixed term for longer. Your repayments are the same every month, so you are protected from rises in interest rates. Most will charge you an early repayment charge (ERC) if you choose to leave the deal before the end of the fixed term.
Interest rates adjust periodically with a variable rate mortgage, which means repayments may change throughout the loan term. Usually, the interest rate changes in relation to another rate, the Bank of England's base rate has a big influence on variable interest rates, as does the base rate of each lender.
For standard variable rate (SVR) mortgages, each lender has an SVR that they can move when they like. This often roughly follows the Bank of England's base rate movements and they can vary massively between lenders.
Some mortgage deals carry arrangement fees, which can vary from a few hundred pounds up to a couple of thousand.
These set up costs can sometimes be made up of two fees. An increasing number of lenders charge a non-refundable booking fee, which is effectively a product reservation fee. If your house purchase falls through and you don’t end up taking the mortgage deal, you won’t get this fee back.
The second type of fee is an arrangement fee which you pay on completion of the mortgage so you won't have to pay it if, for any reason, you don't take the mortgage.
Overpaying on your mortgage could help you to pay it off early and save money on interest payments.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
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