Moving House
Moving to a new house and changing your mortgage can seem scary, but we can help. We have a guide to help you understand everything, and we're available to help you if you need it. Our goal is to make the process as simple and stress-free as we can.
This article is about moving house and how it can affect your mortgage. We’ll explain what you need to know, such as your rights under your current loan agreement and what happens when you move home and change lenders. We’re here to help whether it’s your first time buying a home or you’re an experienced homeowner. Read on to learn more.
Tips for Moving House and Changing Mortgage.
To prepare for getting a new mortgage or moving house, there are some important steps you should take.
First, understand your rights with your current mortgage. Second, talk to a mortgage broker to get professional advice and find the best rate and product for you.
You should also consider the costs involved, including moving expenses. Decide if you want to stay with your current lender or switch to a new one. If you choose to switch, calculate how much money you will need for a new mortgage.
Staying with your current lender can be cheaper if you can ‘port’ your current mortgage to the new property and avoid early repayment penalties.
Know your rights in your loan agreement.
Moving homes and changing your mortgage means you need to understand your rights under your existing loan agreement. Find out if you can switch lenders without a penalty and if there are any conditions or fees for doing so.
Check that the new loan terms are suitable for you. Your rights will depend on your type of loan and lender, so it’s important to understand these before changing to a different lender.
Speak to a professional who has experience in this area to avoid any problems during the process.
Looking for new lenders and products.
To choose a mortgage, do your research. Look at what different lenders offer and compare their products. You can find reviews from past customers on lender’s websites. You should also check what other clients think. It’s important to consider the fees and terms of each mortgage product before signing any documents.
Talk to a mortgage broker for advice and guidance on the best mortgage product.
This will help you avoid problems later.
How do mortgages work when you move to a new house?
If you changed to a new lender and paid off your old mortgage, the new lender will send you a letter to confirm your monthly payments. But you might not have to make a payment for a while.
You could pay double for the first payment or a little more for the first month. This is because some lenders add the missing payment to the end of the mortgage.
So, you make an extra payment at the end. Don’t worry, the new lender will take care of these extra weeks without payment, so you don’t need to worry.
Are you having difficulty selling?
We can help you if you want to move home, but you’re having trouble selling your current property. Some lenders may allow you to rent out your current home while you live somewhere else. The rent you receive can help pay off your mortgage.
When you apply for a new loan, the lender will look at how much you can afford to pay for both mortgages. If you’ve been renting out your home for a while and can prove it with your tax returns, the lender may consider this income.
If you’re having trouble saving a deposit for a new property, we could help you get a “Let to buy” mortgage. This means you would rent out your current property and use the equity you gain to help pay for your new property. This mortgage would be a standard one.
If you’re happy where you are but need a bigger house, you may be able to add an extension. You can borrow more money to fund this project. However, you’ll have to make higher monthly payments.
Final Thought
Are you planning to move or expand your home? Connect Mortgages can help you wisely make these big decisions. They aim to help you get ready for the next phase of your life. Dream big and they will help you make those dreams a reality!
FAQ (Frequently Asked Questions)
You can transfer your mortgage from one house to another using a “portable” mortgage. But, you must meet the requirements for the new loan and may have to pay extra fees. Ask your lender for more information on how to do this.
You can move house even if you’re on a fixed term loan, but your lender may charge you extra fees to transfer the loan to the new property. You’ll also have to meet the requirements for the new loan and make sure you’re up-to-date on all your financial responsibilities before the transfer can happen.