Home Mover Mortgages
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Home Mover Mortgages
What is a home mover mortgage?
People are usually classed as a home mover if they have a mortgage on their current home and plan to move to a new property.
You don’t necessarily need to change your mortgage to move home, but you have the option to do so. A home mover mortgage, then, lets buyers take out a new mortgage to purchase a property.
What is a Mortgage in Principle and how do I get one as a home mover?
Having a Mortgage in Principle can save you time in terms of getting your offer accepted – it speeds up the mortgage application process. A Mortgage in Principle is essentially part of your application.
You can also show your Mortgage in Principle to your estate agents to strengthen your position as a buyer. If you have your Mortgage in Principle in place and nothing detrimental happens to your finances in the meantime, you have a very realistic chance of getting your mortgage application through.
Prior to getting your new Decision in Principle, though, it’s good to check if your current deal allows moving home. That could speed up the process and avoid unnecessary costs such as an early repayment charge.
How long does the mortgage application process take for a home mover?
It really depends on a number of factors, such as the lender’s current workload or your speed in obtaining support documentation – your pay slips, your P60 and so on. If a new mortgage is required with a new lender, the whole process is usually the same as when you bought your first property.
What types of properties can be purchased as a home mover? What types of mortgages can I get?
There are no limitations, other than the lenders’ criteria. It’s best to let your mortgage advisor know if you’re looking for non standard property, for example, so that we can check it will be accepted by the lender.
In terms of mortgage types, again it will depend on your preferences and future plans. But all mortgage types could be considered by your advisor in recommending the right approach for you.
What is the maximum that can be borrowed on a mortgage as a home mover? What is the minimum deposit required?
At our first meeting the first question our clients ask us is always ‘how much can I afford?’ So we always do affordability calculations. We have a tool that connects with all the major lenders at the same time.
It actually doesn’t matter whether you are a First Time Buyer or a home mover – the affordability calculation is done the same way. Since you purchased your previous home, your expenditure or financial obligations might have changed – all that will be taken into account. Also, of course, First Time Buying incentives like lower deposits might not apply to you.
But the equity you have built up on your current home can be used towards the deposit and a larger deposit means a lower interest rate.
What are the eligibility criteria for a mortgage as a home mover?
The criteria will be the same to all applicants. Incentives for First Time Buyers might not apply to you. But you might have access to more lenders as a home mover due to your history and equity that can be used towards your new purchase.
Can I get a mortgage as a home mover if I have bad credit?
You can still be accepted for a home mover mortgage with poor credit, especially if that’s the result of a CCJ or missed payments. The range of lenders would reduce, but having a larger deposit from your equity might help you.
As a last resort, we can go to subprime lenders who will consider your application, usually with a slightly higher interest rate.
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What does porting a mortgage mean?
Porting on your mortgage is where you buy a new home but you keep your existing mortgage deal. You port your deal from your current home to a new home. It’s common in the United Kingdom and Canada, but not in the United States.
You will still need to pass eligibility criteria but you might avoid early repayment charges for example, which in some cases could be a huge saving.
How long does it take to get a home mover mortgage?
It really depends on the lender and many factors – the time required to obtain evidence etc. If you choose to go with a new lender it takes the same time as a normal application. Porting might save some time, as the process is usually a little bit simplified.
What fees are associated with the mortgage as a home mover?
The fees will be the same if you decide with your mortgage adviser that an application to a new lender is acquired. The mortgage adviser needs to spend exactly the same time on your application.
It’s down to the conversation with your adviser – perhaps if you have worked on something in the past there may be a discount or maybe they will not charge you at all.
What happens if I can’t keep up with repayments on my mortgage as a home mover?
Lenders have to treat you fairly and consider any requests you make to change the way you pay your mortgage. Of course, the cost of living crisis hasn’t helped here.
But they can take you to court to repossess your home if you can’t agree on a way to pay back what you owe. This is very stressful. But even then it is possible to reach an agreement with your lender. At the moment almost every lender will offer a number of options to help you. The most important thing is to be upfront with your lender.
Is it more difficult to get a mortgage as a home mover if I’m self-employed?
Self-employed people unfortunately are treated differently to those in employment. There are a number of factors, but again a larger deposit from equity can increase your chances. Every lender has a different approach around the length of time you have been self-employed. Stable or increasing income are important factors here.
How can a mortgage broker help here if somebody is looking to move home?
A mortgage broker has access to all lenders at the same time. Your specific criteria can be very quickly addressed, and we know which lenders can be considered. Not only can you get the most suitable deal on the market for your circumstances, but also, the whole process can save you time and a lot of stress.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.