Home Movers: Understanding Your Options

What is a Home Mover?

A home mover has a mortgage on their current home and plans to move to a new property. Changing your mortgage is optional, but available.

What is Porting?

Porting allows you to transfer your current mortgage to a new property. This requires a new mortgage application, and if your financial circumstances have worsened, it may be denied. You’ll need to pay valuation fees and stamp duty on the new property. If a larger loan is needed, an additional mortgage may be required.

Are All Mortgages Portable?

Not all mortgages are portable. In such cases, you must apply for a remortgage. Be aware of early repayment charges and exit fees in your current mortgage terms.

Remortgaging for Home Movers

Porting is generally more beneficial unless significantly downsizing. Timing is crucial, especially nearing the end of a fixed-rate deal. If your financial situation has worsened, remortgaging may not be an option.

Remortgaging with Your Current Lender

Remortgaging with your current lender may not offer significantly lower interest rates. Most lenders still impose early repayment fees, even if you stay with them.

Remortgaging with a New Lender

If porting is not an option, remortgaging with a new lender can save money. This can help pay off your current mortgage and fund your new home. Early repayment fees may apply.

How Your Home’s Value Affects Your Options

Upsizing

Increased home value may allow upsizing. If not, you must prove affordability for higher repayments.

Downsizing

Downsizing can save money, potentially allowing you to buy a cheaper home outright, reducing monthly repayments.

Negative Equity

If in negative equity (owing more than the home’s worth), remortgaging is unlikely to be approved.

How Need-a-Mortgage.co.uk Can Assist Home Movers

We have access to a wide range of lenders to find competitive mortgage deals for you. We offer expert advice on whether porting or remortgaging is more beneficial and assist with administrative tasks, saving you time, money, and stress.