Know Everything About Moving House Mortgage

Moving home can be a stressful and complicated process. To better help you understand and prepare for how it works, we’ve put together below a number of useful guides and calculators, which will give you essential basics before you start with the Moving House Mortgage process. Once you’re ready to discuss your mortgage requirements, complete our online enquiry form and speak to one of our expert mortgage advisers.

When you sell your property or move to a new house, you’ll usually have various mortgage options available.

How much can I borrow?

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How much will it cost?

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Your monthly payment will be
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The total amount you will pay over the term is
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Remember, your savings will have to cover not just the deposit for your property but expenses such as any mortgage fees (these can often be added to your mortgage) and Stamp Duty on properties costing more than £125,000 in England and Northern Ireland. In Wales, you will need to pay Land Transaction Tax on properties over £180,000.

It’s never too early for you to start thinking about arranging a Homemover Mortgage as this can be time-consuming. You can get a mortgage from an Independent Financial Adviser (IFA), mortgage broker or lender that can help you attain the Best Homemover Mortgage Deals.

Complete our online enquiry form and speak to one of our expert mortgage advisers.

If you’ll need a bigger mortgage to move to a new home, you may decide to move your existing deal across and then ask your lender if you can borrow the additional funds you need. Remember, however, that if you do this, any extra borrowing may be at a different rate.

If you’re not tied into your current mortgage deal and there aren’t any early repayment charges to pay if you leave it, you could remortgage with a different lender for the amount you need for your new property.

Remember that you’ll need to be certain you can afford your new Moving Home Mortgage before you apply. Lending criteria is much stricter now than it was a few years ago, and lenders will usually want to go through your finances with a fine toothcomb to check you can manage the monthly payments before they’ll offer you a mortgage.

If there’s going to be a gap between the sale of your home and the purchase of your new property, some people apply for what’s known as a ‘bridging loan’ to bridge this gap. This type of loan means you can move into your new property before you’ve sold your home. However, these should only be considered a last resort as they usually very high interest rates and fees. Seek professional advice if you’re unsure, and if you’re considering this type of loan you must be comfortable with the risks involved as you’ll essentially own two properties for a period of time.

Mortgage Porting

Many mortgage lenders have mortgages that allow you to ‘port’ them to a new property, so you may be able to move your existing mortgage across to your next home. However, you will effectively have to apply for your mortgage again, so you’ll need to satisfy your lender that monthly payments remain affordable. It’ll be down to them to decide whether they’re happy to allow you to transfer your current deal over to your new property. Bear in mind too that there may be fees to pay for moving your mortgage.

Mortgage Type

Fixed Rate

A fixed rate mortgage enables you to fix your mortgage at a set interest rate for a specified period.

The main benefit of this type of mortgage is that you’ll know exactly how much your monthly repayments will be for the fixed rate period.

Whatever happens to interest rates during this time, whether they go up or down, your payments will remain the same. This can be a big help with monthly budgeting and provide valuable peace of mind that you won’t suddenly see your payments increase if interest rates rise.

There’s a wide range of fixed mortgage rate deals to choose from, with fixed terms ranging from two up to ten years, or sometimes longer. The interest rate you’ll pay varies depending on how long you fix your mortgage for. As a rule, the longer you fix for, the higher the rate will be.

At the end of the fixed rate period, you will usually be transferred to the lender’s standard mortgage rate, known as the standard variable rate or SVR. This may be higher than the fixed rate you were paying, so you may decide to lock into another fixed rate deal when your current fixed mortgage rate finishes.

Tracker

A tracker mortgage mirrors the Bank of England Base Rate, plus a set margin above or below it.

Tracker mortgages are variable rate mortgages, which means your monthly payments can go up or down if the Bank of England base rate rises or falls. Tracker mortgage rates usually change the month after any change in the Base Rate.

The Bank of England Base Rate is currently very low, which means many people with tracker mortgages are enjoying a period of very low interest rates, and there are some great tracker mortgage deals available.

If you are considering a tracker mortgage, you must be prepared to accept that your monthly mortgage payments could increase if the Bank of England chooses to raise the Base Rate. If you need greater budgeting certainty, you may prefer a fixed rate mortgage, which guarantees your payments will remain the same for a set period of time.

No-one knows when the Bank of England will raise the Base Rate, so it’s important to ensure you are prepared for higher payments at any time. For more information and to discuss your mortgage requirements, complete our online enquiry form and speak to one of our expert mortgage advisers.

Moving Home Checklist

Careful organisation and forward planning can minimise the stress of moving to a new house. Use our moving checklist in conjunction with our Who to notify checklist to guide you through the six weeks leading up to moving day.

Six weeks before the move

  • Confirm the date of your move
  • If you’re renting, notify your landlord of your moving date
  • Check your home insurance – make sure you have cover from the day you move into your new home
  • Obtain written quotes from several removal firms. Get references and check the limits of their insurance
  • If you’re not using professional removers, ask friends to help.
  • Book extra storage space if required
  • Notify the relevant utility companies of your departure
  • Start getting rid of possessions you no longer need. Decide which items can be taken to a charity shop, sold at car boot sale, or offered to your friends
  • If you need new furniture or carpets – order them now and arrange delivery for when you move in
Two weeks before moving
  • Start packing non-essential items such as books and non-seasonal clothes into boxes
  • De-register from your doctor, dentist and optician if you’re moving out of the area
  • Visit the post office and arrange for your post to be forwarded (you will be charged a fee for this service)
  • Notify your milkman and newspaper shop that you’ll be moving and give them a date you want the service to stop
  • If you have children or pets, arrange for someone to look after them during the move
  • Make a list of everyone who should know about the move. Send out change of address ecards
  • Finalise arrangements with your removal company. Confirm arrival times and make sure your removers have directions to your new address
  • Arrange a time to collect the keys for your new home from the estate agent
  • Notify then bank of any changes to direct debits and standing orders