A simples guide

Moving House and Your Mortgage

If you’re thinking of moving home and already have an existing mortgage, you might be wondering what your options are. Here, we’ll explore those options and aim to offer a few usual things for you to consider.

Take your mortgage with you

That may seem like the most straight forward approach and the good news is that most mortgages are what is known as portable.

This means that in theory, you should be able to remain with your existing lender and transfer the mortgage on to your new property.

Now, we said in theory for good reason. There may be a couple of reasons why this is trickier than it sounds:

- Your lender will see your request as an application for a new mortgage.

Since the credit crunch in 2008, lenders have applied new affordability rules to their lending assessments and have essentially made it more difficult to borrow.  Nothing may have changed in your life but under their new rules, you may be declined a mortgage.

- If you’re moving to a more expensive property your lender may decline to lend you more or insist that you add the borrowing to a new, different mortgage product.

car parked on drive

Assuming you can take it with you, should you?

It is certainly worth talking to your existing lender and finding out what options they have available to you. Often though, moving house presents an opportunity to consider new and potentially better deals.

There are a number of things to consider in this scenario:

  • Fees on the way out

If you’re in an existing mortgage deal there may be penalties for early repayment. The penalties may vary depending on your lender, your deal, and how long you have been in the existing deal.

Leaving aside penalty payments, you’ll probably find there are ‘exit fees’ payable in any case. Check with your lender what these are.

  • Fees on the way in

If you enter a new deal, either with your existing provider or with a new one, there are usually arrangement fees to be taken into consideration. These are usually added to the mortgage so check the headline rates offered - these will take them into account.

  • Has anything changed

We mentioned the lenders attitude to risk may have changed already but what of your situation? Not least, it might be a good idea to check your credit scores with the rating agencies and make sure your credit looks as good as it can before you apply.

Get the facts

You need to be sure you have all the relevant information that you need to make the big decisions, before you start the process of moving.

As well as digging out the paperwork on your current deal and checking your credit rating, it’s a good idea to do a proper comparison of what deals there are out there.

Doing that is very easy. We have hundreds of mortgage deals with a range of the leading mortgage providers for you to choose from. 

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