Home Mover Mortgages
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What are ‘Home Mover’ mortgages?
A ‘Home Mover’ is anyone who already has a residential home and a mortgage in place, but is looking at moving house. Home Mover Mortgages are sometimes facilitated by porting your current mortgage to your new home, unless you are unable to do so for whatever reason, in which case you may want to apply for a suitable Home Mover Mortgage from your current lender or switch to a new lender.
What is Porting?
Porting your mortgage is essentially transferring it with you to a new property when you move home. The majority of residential mortgage products will include the option to port, however, if you are unsure, you can check with your Mortgage Lender or ask us for help.
Although you are transferring the same mortgage to your new home, you will need to repeat the application process for your existing mortgage entirely, so application and arrangement fees, valuation fees and stamp duty will all be payable. You will also be reassessed to ensure that you still meet the affordability criteria and other Mortgage Lenders acceptance criteria. If your financial circumstances or credit status have declined since your original mortgage application, it is possible for the application to be refused.
Depending on the terms of your current mortgage deal, you will usually avoid paying early repayment charges when you port your mortgage. Most lenders will waive any early repayment fees as an incentive to stay with them.
Can I increase my loan amount when I port?
If you are hoping to move to a more expensive property, it’s sometimes possible to request that your lender increases your current loan when you make an application to port your mortgage.
Not all lenders will offer this option and acceptance criteria will vary between them. Depending on how much equity you have in your current home, a larger loan could mean higher monthly repayments, so lenders will want to ensure that you can afford the higher repayments on your mortgage.
There are some lenders who will require you to take out an additional mortgage on top of the existing one, in order to borrow more money towards your new home. In this case, it’s possible that you could end up with two different mortgage rates, with the same lender.
Can I decrease my loan when I port?
If you’re downsizing your home it’s usually possible to port your mortgage, providing the loan isn’t decreased by more than 10%. If you do move home and require a loan that’s more than 10% lower in value than your current loan, it’s still possible that you can port your mortgage, but most lenders will expect you to repay the difference between the two loan amounts.
Speak To An Expert
We provide professional, friendly and accessible advice and support throughout the mortgage application process, and are able to offer recommendations and referrals to trusted conveyancing and estate agent colleagues too.
Does the value of your current or new home affect your options?
Your current home
Those who have gained significant equity in their current home will have reduced their Loan to Value ratio. This means that there will be more competitive mortgage options available and it will be easier to fulfil the requirements of the application to port your mortgage.
If you have low, or particularly Negative Equity, you’re likely to have fewer options. Negative Equity occurs when you owe more on your mortgage than the current value of your property and lenders are not likely to accept applications to port your mortgage in these circumstances. It may be possible to downsize to a new home when you have low equity, but the interest rates available to you will also be less competitive and you should bear in mind the fees for reducing your loan by 10% or more.
Your new home
In order to upsize to a higher value home, you’ll need to satisfy affordability and credit scoring criteria for the higher loan amount. This will be more achievable the higher the amount of equity you have achieved in your current home. It will also be beneficial if your financial circumstances have improved since your original application.
Downsizing to a smaller home will be an easier option for those who have lower equity or whose income has remained the same or reduced since the original mortgage application.
How can Mortgage Broker Services help?
At Mortgage Broker Services we’ve helped mortgage applicants at every level. If you’re looking to move to a new home, we can take an in depth look at your existing mortgage terms, as well as your finances, in order to help ensure that porting is the choice that benefits you most.
Whatever path you choose, we can provide expert advice and support throughout your entire application process.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.