Home Mover Mortgage – What you need to know
At CS Mortgage Solutions, we’re committed to helping you find the best products for your needs. If you’re currently interested in moving home, then you may be keen to learn more about Home Mover Mortgages. What are they, and who can apply for them? Both of these questions, and more, will shortly be answered.
Home Mover Mortgage Explained
Home mover mortgages are a specific financial product for people moving house. If you’re looking to buy a new home, you will most likely need a mortgage for it. But, what happens if you already have a mortgage? This is where home mover mortgages come into play, and there are two main options:
- Porting: porting a mortgage is simple where you transfer your current mortgage to your new house. Most home mortgages are portable, but you still have to apply for the loan again. In some cases, you may need to borrow a bit more money to cover the cost of the house.
- Remortgaging: this is where you take out a brand new mortgage for the house. You can do this with your current lender, but will often have to pay a host of different fees. Or, you can remortgage with a new lender, paying off the old mortgage by selling your current home.
Both options are great, and one can make more sense depending on the situation. Porting is great if you’re happy with your mortgage terms. Remortgaging is a fantastic option if you want to find a better deal.
Who can apply for a Home Mover Mortgage?
Typically, anyone with an existing mortgage can apply for a home mover mortgage when moving house. The only caveat is that your mortgage has to be portable if you want to move it over to the new house. If not, you may have to remortgage instead.
Of course, you also have to meet all of the borrowing criteria laid out by the lender. Even if you’re porting or remortgaging with the same lender, you may no longer meet their requirements. So, they make you apply and run credit checks just to be safe.
In what circumstances would you need a Home Mover Mortgage?
Home Mover Mortgages are aimed at people who already have a property. They are designed for when you want to move to a new place. If you don’t already own a property or have a mortgage, you should look at different options for first-time buyers instead.
How do you apply for a Home Mover Mortgage?
The application process is similar to that of a traditional mortgage. We can help you with the entire process, ensuring that you have a high chance of being approved. Essentially, you need to fill in an application containing all the essential details:
- How much money you need to borrow
- Your employment status
- Your current financial situation
Many other things are included, and the lender will review your application and run a credit check. If you pass all the checks, you’ll be granted your home mover mortgage of choice. This means you can either port your current one to the new house or remortgage entirely.
Seeing as you already have a mortgage, the chances are high that you will be accepted yet again. However, if you took out your mortgage pre-2008, you’ll find the regulations are a lot tighter. It was far easier for anyone to get a mortgage back then, which ultimately led to the financial crisis. So, there is a chance you will now be denied, even by your current lender.
How do Home Mover Mortgages differ from normal mortgages?
Both mortgage types are essentially the same. They both give you a chance to borrow money to go towards a home. The main difference is that you have more options when moving home. As a homeowner, you’ve proved your financial worthiness and can access better rates from lenders.
Plus, you may have equity in your home that can go towards a downpayment on your next mortgage. This can let you borrow more money than a first-time buyer.
Do you need a Home Mover Mortgage?
In summary, home mover mortgages are used by homeowners searching for a new house. Regardless of whether you’re downsizing or upscaling, a home mover mortgage can be used to help you buy the new property. You can port your current mortgage over, or remortgage to find a better rate.
If you’d like to learn more about this, please don’t hesitate to get in touch with us today. Talk to one of our highly-experienced mortgage advisors to learn what your best options are. This will help you find the most affordable mortgages when moving home.