Mortgage Advice

Mortgage Advice

Remortgage Advice

Remortgage Advice

Buy to Let Mortgage

Buy to Let Mortgage

Helping you move house

If it’s time for a change and you’re keen to move on to the next rung of the property ladder, how do you get the deal right for you, on your mortgage? The Mortgage Hut can minimise any hassle and make sure you get the mortgage that fits your needs.

A house mover mortgage is, essentially, any mortgage that represents the right loan for your next property. This will need to be affordable for you while meeting your ever changing needs as a homeowner. In the majority of cases, sorting out your mortgage can be straightforward when moving home, whether you opt for a remortgage to improve the deal or you port your current mortgage to your new property.

Whether you’re moving up the ladder or downsizing, you’re likely to have a larger deposit than a first time buyer. That means you may be able to finance a larger property or significantly reduce your monthly mortgage payments, particularly if you’re downsizing.
Helping you move house

Taking your mortgage with you

Check the terms of your existing mortgage to find out if it’s possible to move your mortgage with you. Even if porting is possible, you’ll still have to go through the application process again, including affordability and credit checks. At the Mortgage Hut, we can give you access to thousands of house mover mortgage deals to find the right fit for your new purchase.

Talk to us and we’ll be able to advise you on suitable mortgage products, plus any fees and charges involved in porting your mortgage to your new home.
Taking your mortgage with you

How much can you borrow?

How much can you borrow?
Finding out how much you can borrow is the first step in identifying the mortgage deal for your circumstances. Once you know what your repayments will be, you can start your house hunt in earnest, especially if you’re hoping to buy a larger and more expensive property.

If you’ve accumulated equity in your property since you bought it, you may be pleasantly surprised at the kind of property you can afford. On the other hand, if you’re currently in negative equity then talk to us before you start your house hunt. We’ll try and find the most suitable mortgage to meet your circumstances and help you to navigate any restrictions that may apply to your new mortgage.

As an existing homeowner, you’re likely to have a wider choice of mortgages and lenders than a first time buyer. That’s because you’ve already demonstrated your creditworthiness to a mortgage lender. And with enhanced equity, you’ll be able to put down a larger deposit which may allow you to significantly reduce your monthly mortgage payments, particularly if you’re downsizing.

Checking your affordability

It’s very important to consider and check your current and projected financial circumstances as they may have changed since you took out your original mortgage. You'll be fully assessed by potential mortgage lenders to make sure you meet their criteria, even when you’re keeping your current mortgage and transferring it to your new property.

In general, the average loan for home movers is 74% as opposed to 82% for first time buyers. That’s why it makes sense to work with an experienced mortgage adviser who can help you to get the most suitable deal, whatever your credit score and affordability rating.

The affordability assessment is in two parts. First, the lender will want to see proof of income such as payslips and your P60. Check with your mortgage adviser what other sources of income can be counted as part of your incomings.

Next, your lender will need to see what your outgoings and expenses are. That could include credit card debts and loans, childcare, gym memberships, school fees, mobile phone contracts and other monthly bills. Your lender then deducts your expenses from your income and will attempt to stress test your vulnerability to mortgage rate rises and other changes in your personal financial circumstances.

You can also expect your lender to examine your current lifestyle and include your monthly spend on items such as groceries, holidays and entertainment in the calculations. This helps them to understand the financial impact of any change in your finances.

Some lenders can also be selective with regard to the properties against which they’re prepared to offer a mortgage, including flats above shops or in high rise blocks.

At the Mortgage Hut, we can advise you as to which lenders are likely to accept you based upon your circumstances and the property you’re interested in purchasing.

Moving house with poor credit

You can still be accepted for a house mover mortgage even if you have a poor credit rating as a result of CCJs or missed payments. There may be fewer products available and they may be more expensive, but keeping up with your mortgage payments is a good way to rebuild your credit rating.

Working with a specialist broker such as the Mortgage Hut can improve your chances of getting a mortgage when your credit rating is poor. That’s because we have access to specialised mortgages and lenders who are willing to take the risk in return for fixing your mortgage at a higher rate.

You can also help to rebuild your credit score by making repayments on time and keeping within your credit or overdraft limits. Once you start paying a mortgage and repairing your credit score, you may be able to remortgage again to get a better deal.
Moving house with poor credit

Can I get a mortgage if I’m self employed?

Most lenders will expect a self-employed mortgage applicant to have at least 2 years of accounts, a track record of regular work, a healthy deposit and a good credit history.

Your accounts should be up to date and prepared by a certified or chartered accountant, but don’t panic if you’ve been trading for less than 2 years; at the Mortgage Hut, we can help you find lenders who are able to help.

If you already have a mortgage, you may find that your current lender will be sympathetic to remortgaging. The type of business you run can also affect the success of your application.

If you run a limited company or you’re in a partnership, you’ll need to show the maximum income possible rather than minimising the figure for tax efficiency purposes.
Can I get a mortgage if I’m self employed?

Porting your mortgage

Porting your existing mortgage is definitely worth considering, especially if you’re on a standard variable rate (SVR) with no early repayment charges. You may want to keep your current deal if your current mortgage has a lower rate than all existing deals; in that case you may want to consider porting your mortgage. This is obviously one of the simplest options but deciding whether or not to port your mortgage will depend on a number factors.

There can be drawbacks to simply porting your mortgage. For example, if you want to borrow more to move up the ladder to a larger property, the chances are your lender will ask you to take out a second mortgage to cover the difference. And that comes at a cost with a whole new set of mortgage arrangement fees and rates that may not be as competitive as your original mortgage.

Other factors to consider before porting your mortgage include how many years are left on your existing deal, your affordability when moving and whether you’re looking to downsize or scale up. Always check for early repayment fees as these can be a significant factor when deciding to port or look for a new deal.

Taking out a new mortgage

Taking out a new mortgage
Fixed rate and tracker mortgages are likely to have early repayment fees which could be between 1% and 5% of the outstanding repayment amount. If you’re still in the special offer period of your loan then you may have to pay extra fees and interest charges.

However, if you are planning to move home, this could be a great opportunity for you to find a better mortgage deal. If you’re using the opportunity to get a lower rate or other benefits, then please contact us. We can give you access to mortgage products that aren’t available on the high street and that can make remortgaging cost effective.

Ultimately, if you are considering remortgaging, you should always check for any penalties or additional fees that you may incur, such as mortgage arrangement fees and exit fees. Although a sale and remortgage can be more complicated than a first time buy, at the Mortgage Hut we believe in making the process as hassle-free as possible. That’s why we put our expertise at your disposal throughout the moving procedure.

Popular types of mortgages

If you’ve built up equity in your home then you’ll be in a strong position when it comes to remortgaging. These are some of the most popular types of mortgages which are available to home movers: 

Fixed rate mortgage

Fixed term mortgages are popular with home buyers but they’re a smart choice if you’re looking to be able to budget each month. Your monthly repayments will remain fixed for a period of time which can work to your advantage if interest rates remain low. However, this type of mortgage can be more expensive than a tracker or variable rate mortgage and the early repayment fees can be steep. 

Variable rate mortgage 

This is a standard mortgage where the interest rates go up and down in line with the Bank of England interest rate. However, lenders may raise the rate at any time and you need to be able to cover the higher repayments on any rate changes that occur. Having said that, a standard variable rate mortgage can offer a great deal more flexibility as there’s unlikely to be an early repayment charge meaning that you can remortgage more easily. You may be eligible for a Discount mortgage which offers a reduction on the SVR for a fixed period of time.

Tracker mortgage

As the name suggests, this type of mortgage tracks the base rate so your repayments can fall as well as rise. However, these types of mortgages can also come with a collar, a bottom rate that you’ll always pay even if the base rate falls below this level but there may also be a cap, or maximum rate you’ll be expected to pay. This type of mortgage is ideal when interest rates are low and may also be available without an early repayment fee.

Offset mortgage

If you’re a high earner or have a healthy level of savings, an offset mortgage can be a tax-efficient way to handle your loan. By linking a savings account to your mortgage you’ll reduce the interest you pay on your loan and you can choose whether to pay more or less each month while still having your savings available. However, depending on the available rate, you may be better to use your savings to pay off your mortgage directly.

The keys to getting a better deal

  • If you don’t need to increase your current borrowing levels, you may find that porting your mortgage is the deal, right for you
  • If you’re currently on a fixed rate deal and can afford to wait before you move, wait until you’re on the lender's SVR when you won’t have any repayment charges to deal with.
  • It may be harder to port or remortgage if your credit score or financial circumstances have changed significantly.
  • Look to remortgage if you want more flexibility or you’re looking for a larger loan to move up the property ladder.
  • Get your credit report in tip-top shape and make sure your financial position still fits the new criteria.
The keys to getting a better deal

We can help

If you need help with your mortgage when moving house, please get in touch for friendly, expert advice. If you have questions and want to speak to an expert for the right advice regarding the mortgage options that are available for people who want to move house or remortgage, why not call The Mortgage Hut today on 0300 303 2640 or request a call back.

Looking for a Mortgage?

Find out if you're eligle in a couple of clicks, with no hidden credit checks.