Are you thinking of moving home? The first steps you need to take are to find out how much you can borrow and then find the best mortgage deal for your individual circumstances.
Moving home is a bit more complicated than a first time purchase as you now have a property to sell.
Ready to make the next move?
WE’LL HELP YOU FIND A GREAT MORTGAGE DEAL FOR YOUR NEW HOME
Whole of market
How can we help you move?
- Drake Mortgages is an independent mortgage broker with access to the whole of the market giving you maximum mortgage choice
- We give personal and friendly independent mortgage advice
- Our broker will search the market and find a mortgage that suits your circumstances, no matter how complex
- They will explain all of the costs and make sure everything is right for you
- We can provide you with an Agreement in Principle (residential mortgages only)
- Our mortgage team will liaise with lenders, solicitors and estate agents to keep you on track
- We can save you time, money and help to ease the buying process
WE’RE WITH YOU ALL THE WAY…
MOVING HOME RESOURCES
Types of Mortgage
There are lots of different mortgage variables to choose from and the choice can sometimes be a little daunting.
Here’s a quick summary to help you get started.
Typically you will have one interest rate product that applies to your whole mortgage.
- Fixed rate mortgages – With a fixed rate of interest your mortgage costs are fixed and predictable for a set amount of time. This can be from 2 to 10 years or longer. There will almost certainly be Early Repayment Charges if you reduce the mortgage during the fixed rate term but you should be able to move home if your rate is portable.
- Tracker mortgages – These will ‘track’ or follow an interest rate index which is normally the Bank of England base rate. The rate you will pay is the BOE rate plus a fixed margin on top that’s agreed when you apply for the mortgage. So the amount you pay will vary as the base rate moves up or down.
- Repayment – Most mortgages are set up as repayment or capital & interest mortgages. Each monthly repayment that you make comprises of interest and capital, slowly reducing the amount that you owe. If you keep up with all of the mortgage payments the loan will be fully repaid at the end of the term.
- Interest Only – With this repayment method the monthly payments are interest only so no capital is repaid. Your mortgage balance does not reduce so you need to plan how this will eventually be repaid.
- Part & Part – This is a mixture of repayment and interest only. Our advisors can explain how this works but it can be extremely useful if the mortgage needs to be repaid in different stages during the mortgage term.
First Time Buyer?
When buying your first home there’s a lot to learn and take in. Mortgages, interest rates, repayment methods, fixed or variable, AIP, surveys, contracts, offers, insurance…
Our mortgage advisers help first time buyers just like you everyday and our mortgage service will lead you through the homebuying process. Our First Time Buyer Mortgage Guide provides an overview of the whole process.
When researching a mortgage, it’s helpful look beyond the headline rate. There are other costs, such as the arrangement fee, ERC and property valuation fee which need to be considered.
Our brokers can calculate the overall cost of a mortgage over a given number of years, making comparing deals much easier.
Protecting your mortgage in the event of your death is just as important as researching a great interest rate. Typical costs for life cover are only a small proportion of the mortgage payments, with the mortgage paid off in full should you die.
Can I move my mortgage to a new house?
When moving house ONE OPTION IS to transfer your mortgage interest rate to your new home – this is porting.
Porting a Mortgage Explained
Why would you do this and how does it work?
You may want to port your mortgage product for 2 main reasons:
- It’s a great product and much better than those currently available
- To avoid early repayment charges
The ‘how’ is a little more complex. In buying a new property you will need to apply for a mortgage. To port a product you need to apply to your current mortgage lender and ask them to transfer or port your interest rate deal over to the new home. The lender will still need you to qualify for the new mortgage and will look at your deposit amount, the new property, financial status including income and also your credit history.
If you apply for a mortgage amount which is greater than your current balance, this extra amount will be placed on it’s own interest rate product.
We can ask your existing lender about your porting options and borrowing additional money for the new purchase. We will compare the costs of porting with switching lender and having a single loan with a new lender before recommending changing lender.
In the unfortunate event that your current lender declines your application then a new lender will need to be found to enable you to move.
Questions? Just give us a call on 020 8301 7930
The cost of moving house
Here’s some of the costs you can expect when moving house:
- Legal fees and searches
- Stamp duty
- Mortgage valuation
- Brokers fee
- Selling agent fees
- Buildings & contents insurance
- Life insurance
- Mail redirection
- Initial repairs
- Home improvements
Talk to our experts today
020 8301 7930
Let to Buy: Move to a new house but keep the one you have now!
So you have a dilemma, you would like to move house but you can’t (or won’t) sell the home you currently live in. Can Let to Buy help?
The complete process requires 2 mortgages and we definitely recommend using a qualified independent mortgage advisor who is experienced with these situations.
1 – Remortgage your current home on to a buy to let mortgage. You need to apply for a mortgage amount that makes the purchase possible. This is the Let to Buy.
2 – Apply for a standard residential mortgage on the new property and use the equity raised as a deposit.
The principles of Let to Buy are quite simple. Instead of selling your current home to move into a new property, you keep your current home and let it out to tenants.
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