Homemover mortgages
Moving home can be stressful without the added stress of rearranging a mortgage but there is options which can save you money.
Using a broker to help with this will give you inside access into the whole market and at this point you can assess your current circumstances to see what would be the best options moving forward.
1
What happens to my current mortgage if I move home?
There are 2 results with your current mortgage when you move home. 1, The mortgage will be settled using the proceeds from the sale and if needed a new mortgage will start for the purchase or 2, you may be able to port your mortgage which will mean if you are on a fixed rate you can move that rate to the new property and save money on any early repayment charges.
2
I am downsizing, I need to reduce my mortgage
If you reduce your mortgage by either clearing the current mortgage with the proceeds or if porting pay a chunk off on completion so your moving forward with the right amount to be mortgaged.
3
Can I add or remove someone from my mortgage?
Yes of course - this comes up most in break-up situations and it is possible to remove someone from the mortgage as long as the person remaining on the mortgage can pass affordability with the lender.
Adding someone to the mortgage is easier as we would look to remortgage your property and use the new income from the person being added to the mortgage which most of the time will replace the income of the person being removed.
If you wish to remove someone and your income does not pass affordability then it may result in paying a lump sum off the mortgage to make this work.
4
Can I keep my property and rent it out?
Yes! This is called a Let to buy mortgage. You can remortgage your property and raise funds for a deposit to buy on. You would then top up the purchase price on the new property with a new mortgage.
The risk of this is you will have two mortgage commitments but in theory your tenants in the previous property should be paying enough to cover the mortgage payments as well putting some change in your pocket.