ePrivacy and GPDR Cookie Consent by Cookie Consent A guide to mortgages and moving house

Moving House Mortgage

A guide to mortgages and moving house

Heather

Written by

Heather

Last updated Tuesday 20th April 2021

Files

Moving to pastures new is an exciting prospect, but how should you get the ball rolling? Whether you’re a growing family or retiring to the countryside, the first thing all homeowners need to consider is their mortgage options.

How much you can borrow will depend on a number of factors, and you’ll also need to decide which rates on offer best suit you. If this all feels a little daunting, we’ve partnered up with Mortgage Advice Bureau to provide all the answers a homemover will need…

Assess your current mortgage

Before you do anything else, you’ll need to review your current mortgage. This will help determine the terms of your future borrowing. For example, should you want to move house and you have a fixed-rate mortgage, you’ll need to factor in the possibility of having to pay an early repayment charge.

See how much you can borrow

Get an indicative idea of your borrowing potential by answering the simple questions below

£
£
£

Homemover mortgages: how much can you borrow?

There are many factors which impact how much you’ll be able to borrow for your move, including your household income, bill payments, plus any additional outgoings such as student loans and credit card bills. Interest rates will also come into the equation and lenders will often need to make sure you’re able to repay your mortgage should the rates increase.

Because of all these intricate factors, the best way to explore your options is through a mortgage broker. Once you’ve worked out what you can afford, you’ll be able to go into the housing market with your eyes open.

Book a call with a Resi Finance expert here.

OR

Get an idea of your borrowing potential with the Mortgage Advice Bureau’s calculator.

Mark
The Resi Finance team are on hand to give specialist mortgage advice

Porting your mortgage

One of the options you and your broker might explore is something known as ‘porting your mortgage’. This would allow you to move your mortgage over to the new property while remaining on the same deal. While all the terms and conditions will transfer over, you may have to reapply to your lender, as your circumstances may have changed since you moved into your current property.

Most mortgages are portable but there are exceptions, so it’s worth speaking to a mortgage specialist to find out what your current situation translates to.

Decision in principle

Before you go rushing out to house viewings, it’s recommended you sit down and get a Decision in Principle (DIP). This will help document how much money a lender is willing for you to borrow. Don’t worry, the finance checks required in this process won’t affect your credit rating, and if a hard check is required, they’ll always ask first.

The benefit of having a DIP is it can show both an estate agent and the seller that you’re a reliable buyer with a confirmed budget, who is likely able to move quickly on getting a full mortgage application completed. This could make all the difference if a seller has to choose between you and another buyer.

Document folder
A DIP (decision in principle) may help you stand out from other buyers

Mortgage protection

Alongside finding the right mortgage, at the same time it’s worth exploring your insurance options too.

While no one enjoys thinking about worst-case scenarios, foregoing on proper protection does expose you and your family to big risks. And, as COVID demonstrated, no one knows what the future holds. Therefore, it’s important you make sure your mortgage repayments can be covered, rain or shine.

Some policies you might consider…

  • Payment Protection Insurance
  • Income Protection
  • Life Insurance
  • Critical Illness Cover (CIC)
  • Building and Contents Insurance

Resi Finance

Need help finding the best mortgage and insurance policies? Don’t worry, our team is always on hand to help homemovers explore their options.

Our team of in-house mortgage brokers can provide…

  • Mortgage options and advice
  • Application management
  • Insurance protection for your home
  • Exclusive deals and rates from our library of over 90 lenders

A unique benefit of working with Resi is that we’re able to bring together financial and architectural advice. If you’re considering renovating or extending a property, our team can advise on how to fund this project as well as how to make it a reality.

Learn more about Resi Finance.

Conclusion

If you’re a homemover looking for the right mortgage, the first thing you need to do is…

  • Look into the terms of your current mortgage - are there any early repayment charges? Could you port your current mortgage?

  • Select a mortgage broker who can assess your current earnings and assets, they’ll then advise on your borrowing options.

  • Get a Decision in Principle as evidence of your mortgage options, which can be shown to sellers.

  • Before you move, get yourself covered with the right insurance policies, ensuring your mortgage repayments can always be met.

Get your move off to the right start by talking to our in-house mortgage brokers. Book a free no-obligation consultation here.

Please note:
You may have to pay an early repayment charge to your existing lender if you remortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1%, but a typical fee is £495.

If you enjoyed this post, you might enjoy our Resi Newsletter, sent weekly via email. Sign up here

Book a free architectural advice call

We offer free 30 minute phone consultations to help you and your project get the guidance you need

Select a date to view availability

Phone: +44203 868 9453 | Email: advice@resi.co.uk

Resi Design Ltd. trading as 'Resi' | Company No: 10471125

We are proud to employ architects registered with the Architects Registration Board and were awarded the mark for The Mayor's Good Work Standard for fair pay & conditions, wellbeing, skills, progression, diversity and recruitment.

Resi Finance Ltd is an appointed representative of Mortgage Advice Bureau Limited and Mortgage Advice Bureau (Derby) Limited who are authorised and regulated by the Financial Conduct Authority. Resi Finance Ltd. Registered Office: International House Canterbury Crescent, Floor 4, London, England, SW9 7QE. Registered in England Number: 12327535