What you need to know about home moving?
Thinking of moving up or down the property ladder but unsure if you can port your mortgage to your next property? Don’t worry. I’ll review your current mortgage to check if it’s portable. If it’s not, I’ll find an alternative lender from our extensive panel of high street and specialist lenders. I’ll also inform you of any potential early repayment charges before securing a mortgage that suits your needs and circumstances.
01 What types of mortgages are available for home movers?
- Fixed-rate mortgages – these types of mortgages have a stable interest rate for a set period for example, 2, 3 or 5 years.
- Variable-rate mortgages – the interest rate on these types of mortgages can fluctuate and include tracker and discount mortgages.
- Offset mortgages – these types of mortgages are linked to your savings to reduce your interest paid.
02How much deposit do I need?
- Typically, you’ll need at least a 5 or 10% deposit of the property’s value. Having a larger deposit can secure you better mortgage rates. So, it is always advisable to put down as much deposit as you can afford.
03What are the current interest rates?
- Interest rates vary by lender and product. It’s always better to compare rates from different lenders to ensure you are getting the best deal available. It’s advisable to speak to a mortgage adviser to get the best deal available. It’s advisable to speak to a mortgage adviser to get the best deal available, as we work with a wide range of lenders.
04How much can I borrow?
- This depends on your income, financial commitments, credit score, and the lender’s criteria. Typically, lenders usually offer up to 4.5 times your annual income. However, it can be more. It’s advisable to speak to a mortgage adviser to get the best deal available, as we work with a wide range of lenders.
05What fees are involved in getting a mortgage?
- Fees will vary from lender to lender but typically include arrangement fees, valuation fees, legal fees, and early repayment charges (ERC’s). However, some products may have no fees, but the interest rate might be higher. You may also have to pay a broker fee.
06Can I port my existing mortgage?
- Many mortgages are portable, allowing you to transfer your current mortgage to a new property. It’s advisable to speak to a mortgage adviser who can help you with this and check to see if there are any early repayment charges and if your current mortgage is portable.
07What documents do I need to apply for a mortgage?
- Typically, you’ll need to provide the lender with proof of Identification, proof of address, bank statements and payslips / SA302’s or accounts. However, the lender may require additional documentation.
08How does my credit score affect my mortgage application?
- A higher credit score can increase your chances of approval and secure better rates. However, if you have a low score then there are lenders who do not credit score but will credit search. It is always advisable to check your credit score to check if there are any issues.
09Should I use a mortgage broker?
- A mortgage broker can provide access to a wider range of mortgage products, offer expert advice, and handle much of the paperwork, potentially making the process smoother.
10What happens if my mortgage application is declined?
- If your mortgage application is declined, find out the reasons from the lender. Consider seeking advice from a mortgage adviser who can explore alternative options.