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Guide to moving house

Porting your mortgage when moving house

Many mortgages are “portable”, which allows you can transfer your current mortgage product to the new property. You would need to check with the lender or broker about whether your mortgage is portable before deciding to go down this route.

The lender may not always allow you to port your mortgage to a new property, even if it’s possible. This could be for several reasons, for example the lender might find the type of property you want to buy unacceptable.

When you ask your lender to “port” your mortgage, you effectively have to reapply for the borrowing. Bear in mind that you may no longer qualify.  Your circumstances could be different, you may have a new profession, your outgoings could have increased, or you may have had recent credit problems, etc.

If you are unable to port with your current lender, or they don’t have an alternative deal that’s suitable, then you can look elsewhere. However bear in mind you may be liable to early repayment fees, dependant on your current mortgage terms.

Switching to a Different Type of Mortgage Product

Sticking with the same type of mortgage product is good idea providing it works for you, however personal circumstances do change. You may find that a different type of rate or term now suits you better. If this is the case, a mortgage adviser will listen to your situation, explain your options and help you come to a decision you’re confident in.

Choose a Different Interest Rate

You don’t have to stick with the same interest rate product when you take out a new mortgage, only if you port your existing one. You can choose from any available products that the lender has to offer for any new borrowing. Your mortgage broker will help you choose one that best suits you and your personal situation.

Solicitors fees

Legal fees are one of the main costs of moving home as they would have been during your first purchase. Buying and selling properties involves a number of legal processes, from Local Authority searches to fraud checks. Using a solicitor also gives you peace at mind that your new home is lawfully yours. Ultimately, your solicitor or conveyancer will oversee the bank transfer with the relevant lender on your day of completion as well.

Estate agent fees

Estate agents are paid by the seller, so the estate agent fees only come into play if you’re selling a property. Some estate agents charge upfront fees, but traditionally, you’ll pay a percentage of the final sale price. The amount you pay depends on the estate agent your use and the terms and engagement you agree with them.

Stamp Duty

One of largest costs of moving house is Stamp Duty officially the Stamp Duty Land Tax. You may be liable to pay this levy if you buy a property in England or Northern Ireland (there are separate property taxes in Scotland and Wales). The amount of Stamp Duty you pay depends on the purchase price and your status as a buyer. If you are unsure how this may affect your move, always check with your mortgage broker who will be able to assist you with these calculations.

As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.