At Safe Finance we understand that moving home can be both a stressful and exciting time. So whether you’re looking to buy a bigger property and borrow more – or want to let out your current home and buy somewhere new elsewhere – our impartial advisers can talk you through your options. With our wealth of knowledge and expertise we believe it is the perfect opportunity to look for a better mortgage deal.
If you’re trading up to a larger property, you may need to increase the size of your loan. But you’ll need to ensure it’s affordable once you get there, so it’s crucial that you get the right advice upfront. Why not let the advisers at Safe Finance do some of the hard work for you, and make sure you’ve got the very best mortgage; reducing your stress levels and increasing your opportunities. Our independent mortgage advisers will undertake a comprehensive search of the market – looking at thousands of products – to ensure they find what suits your needs. And because our staff are salaried you can be confident that they’re focused on getting you the very best deal.
So if the best bet for you is to stick with your existing lender, we’ll let you know. See what you could save with a simple chat today. Complete our contact form for a no obligation visit from our experts.
6 Smooth Steps to Make your Move
In order to move you’ll need to have at least 5 or 10% of the purchase price to put down as a deposit on your new property – which you’ll hopefully be able to raise through the sale of your existing property. However, if you’ve not got much equity in your home, you may need to top up with your savings to secure the mortgage you need.
The fact you’re moving home doesn’t mean you have to change your mortgage, though it might be a good opportunity to do so. Some lenders will allow you to port it with you to your new property, nonetheless the rules of mortgaging still apply such as your affordability and loan to value. Follow our 6 steps for an easier transition and talk to our expert advisers who are happy to guide you on your mortgage journey.
1. Consider your borrowing requirements
As you begin your adventure for a new home you will need to consider whether you are looking to borrow similar level of monies you borrowed previously or whether you’ll need more to secure that dream home. If you are borrowing more, it is advisable for you to get some independent guidance on how much you can manage financially and more importantly what lenders are prepared to advance you. Your application for additional finance will be subject to all the same checks on affordability and your ability to repay as your original mortgage.
It is imperative you look at what you are comfortable paying and how long you would like to repay it for, after all the longer you have it the more it’s likely to cost you.
2. Portable Mortgage VS Remortgage
While you can transfer your mortgage, you don’t have to. In some cases your lender may prevent you from remortgaging your current mortgage with your new borrowings. Often this can mean two mortgages running side by side on two different interest rates. Consequentially the house move might be a good opportunity to review your current mortgage arrangements and to look at whether remortgaging makes sense.
Remortgaging may be a good idea whether or not you need to borrow more. But don’t just look at the headline rates of interest offered by rival mortgage lenders. You need to understand what the total cost of the monthly repayments over the term of the new deal will be compared to the total cost of the monthly repayments on your current mortgage.
Don’t forget to add in all the charges you’ll incur – such as any exit penalties you might pay from your current arrangement and arrangement fees for the new deal.
3. Assess your Penalties
Like any remortgage deal it is imperative you check whether there are any remortgage penalities for switching your product early. If there are, it is in your interests to establish how much these are and whether you would be in a better position by paying them.
In particular, there are likely to be fees and additional interest charges if you’re still in the special offer period of the loan – on a fixed or discounted deal rather than the lender’s standard variable rate. In order to be better off by moving mortgage provider, you’ll need to find a deal that’s sufficiently cheap to cover the cost of these penalties. Our impartial advisers can make that decision clearer by explaining your options to you, simply give us a call today to discuss.
4. Improve Your Mortgage Deal
When remortgaging the process is very similar to that of your very first mortgage; yes there are still checks on affordability and income and expenditure, and of course the valuation is still a major factor in what can be borrowed against the property.
Nonetheless, that does not mean you have to settle for the same sort of mortgage you had in the past. Perhaps you have been tracking the bank of England base rate for a while, with further borrowings you may want the security of knowing what your payments are and that’s ok to do for your new mortgage.
If you’re remortgaging as you move home, the new lender will also want to value the property you’re buying and to see a survey of the property. You’ll go through a credit scoring process and be asked to provide evidence of your income, as well as other basic documentation. All of this in most cases can improve your over all mortgage deal. There is no harm in exploring all of your options is there?
5. Financial Assessment & Credit Referencing
Since the Mortgage Market Review came into the mortgage industry in April 2014 a new set of rules, far stricter than the previous ones enforced tighter controls over what lenders were allowing borrowers to borrow.
So if you are thinking of moving a full detailed assessment on your finances are inevitable. Documentation that prove incomings and outgoings are essential and more questions than ever before are being asked of individual spending behaviours. Making it tougher to obtain mortgage approval.
Whilst you might have previously met your lenders criteria, there is no guarantee that this is the same for today thus a new credit assessment will need to be carried out. So, while your circumstances might not have changed, your lender’s criteria might have got much stricter, which means you may no longer be eligible to move your mortgage.
6. Seek independent advice
In theory switching your mortgage or even getting a new mortgage deal should be easy as pie. However with the industry criteria forever changing and deals being more confusing it is difficult to know which product is right for you. If you are moving homes you may find it is better to stick with your existing lender after weighing up the pros and cons.
Therefore It makes sense to take expert advice on what is your best option. In addition to this, an adviser can help identify the best alternative products.
Our expert mortgage advisers will search thousands of mortgage deals and pick out the one that’s right for your circumstances and because their salaried you can have confidence that you’ll receive impartial advice.
Simply complete our contact form to arrange an appointment with your local expert