Moving home

Move your mortgage or find a new one

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If it is time to move on to a new home, you may be wondering what to do with your mortgage. Do you keep it as you move to your new house, or are you better off looking for a new mortgage?

Many mortgages are portable, meaning you can apply to take them with you as you move. However there are fees associated with this, and if you need to borrow more, you need to qualify to do so with your exisiting mortgage lender.

For some people, it is better to look for a new mortgage altogether once the rates and fees of keeping your existing mortgage have been taken into account.

Our trusted advisors are here to help you choose the right option for your circumstances, with expert mortgage advice to make moving home as painless as possible.

Stress free services

VA Mortgages have been excellent!

This is the 2nd mortgage they have arranged for us & we would highly recommend their services.

They talked us through our options and got us a great deal. Everything happened when they said it would making it stress free.

We will be back for the next!

Ashley Shepherd

Help and support

I wanted to say a big thank you to Mark for all the help and support he gave me with sorting out my new mortgage.

It was quite a complicated situation but Mark made sure it all worked out really well for me.

I would recommend VA Mortgages to anyone and will definitely use them again in the future.

Ursla Hawthorne

Mortgage advice we trust

Les has arranged the mortgages for our last two houses and we couldn’t have done it without him.

He has always been helpful, responsive and patient.

I would definitely recommend him to anyone looking to get the best deal on their mortgage.

Adam Camilletti

Can I keep my existing mortgage?

The majority of mortgages are portable. A portable mortgage can be transferred from your current property to the new property you want to purchase. In principle this is relatively straightforward and may be your best option.

If you are moving to a more expensive home you will need to have the property valued by your mortgage lender and you may need to borrow more to purchase it. You will need to meet the current criteria set by your mortgage lender to borrow this additional amount.

If you stay with your current lender, this can be the cheapest option. You will most likely need to pay a small fee to transfer your mortgage over to the new property, plus a valuation fee.

Things to consider when deciding if you should port your existing mortgage

When deciding if you should port over your existing mortgage, or look for a new one, you should consider:

Do you qualify with your existing lender?
When you apply to port your mortgage over to your new home, you essentially will be reapplying for the mortgage you currently have. Over time the criteria lenders use has become increasingly more strict than they previously were. You need to check if you still meet your lender’s criteria, such as your credit score, loan-to-value (LTV) and the amount you are borrowing.

Equally, if your circumstances have changed this could have an impact. For example, if you are self employed now but were in full time employment when you applied, you may find you do not meet the criteria of your existing lender. Being self-employed doesn’t mean there isn’t a mortgage to suit you, but if your situation has changed you may find your current mortgage product is no longer a good fit.

What is your current lenders interest rate?
When you take out a new mortgage, you are able to look at all of the mortgages available from the various lenders on the market. Each mortgage product will have it’s own fixed or variable rate which will affect how much interest you pay on top of your mortgage debt.

If you choose to port your existing mortgage, you are tied to one lender and the rate they have offered you. This could be positive if it is a competitive rate, as you will save money on the fees of ending your existing mortgage and arranging a new one. If the rate is not competitive it may save you money to pay the associated fees and find a better mortgage for your current circumstances. Speaking with a mortgage advisor can help you to work out which option is most cost effective.

What are the fees if you find a new mortgage and leave your current lender?
If you decide to leave your current mortgage, the first fee to consider is an early repayment charge. These typically apply to an introductory offer period ranging between 2-5 years at a fixed rate of interest. Usually these fees will be 1%-5% of the outstanding mortgage debt, and this fee may reduce the closer you are to the end of the fixed period.

Most mortgages also have an exit fee, typically this is between £50 and £300. When you take out a new mortgage there will typically be an arrangement fee to factor in, as well as a valuation charge. It is likely you will need to pay a valuation charge even if you stay with your current lender, as they will need to value the new property you would like to port your mortgage across to.

Can I look for a new mortgage instead?

When moving home it is sensible to look at both porting your existing mortgage and taking out a new mortgage. You can compare the two and work out which is better for you financially. If your existing mortgage doesn’t have large repayment penalties, a new mortgage may well be the cheaper option.

Adding up the fees associated with taking out a new mortgage, such as the arrangement fee, and then comparing it to the cost of porting your existing mortgage can help you identify which is the better option. You may find the additional fees cost less than the extra interest you would pay with your current mortgage. Equally, you may find it is much more cost effective to stay with your current deal.

Can I look for a new mortgage instead?

When moving home it is sensible to look at both porting your existing mortgage and taking out a new mortgage. You can compare the two and work out which is better for you financially. If your existing mortgage doesn’t have large repayment penalties, a new mortgage may well be the cheaper option.

Adding up the fees associated with taking out a new mortgage, such as the arrangement fee, and then comparing it to the cost of porting your existing mortgage can help you identify which is the better option. You may find the additional fees cost less than the extra interest you would pay with your current mortgage. Equally, you may find it is much more cost effective to stay with your current deal.

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