What Is Classed As A ‘Home Mover’ Mortgage?

Quite simply, if you own your own home, this will be the type of buyer you are when purchasing a new property while selling your existing home.

See this as our guide on what your options are.

Can I transfer my current mortgage to a new home?

Yes you can, you will have a couple of options. You can:

A/ ‘Port’ your existing deal – this means any mortgage you did have will move to the new home any remainder will be mortgaged on the new deal. This could be beneficial in terms of early repayment charges.

B/Find a new deal based on current rates, you may be liable for early repayment charges if you have a remaining term on your product, i.e. 2- year fixed, discounted deal etc.

And if I need a bigger mortgage this time?

You can do this but you then have to meet affordability criteria for the increase. Although most lenders are moving away from Income Multiples as a direct way of working out Income, most will usually be around 4.5-5 times your salary. If your Income multiples do not meet the new loan you are looking for, it is unlikely you will be purchasing the new home. Especially as they will be taking debt/credit outgoings from that Income as well.

In the case of increasing your mortgage and In most cases the purchase price, something customers often forget to include in their calculations is Stamp Duty. Stamp Duty is set in tiers, so a home for £300,000 will be a lot more in Stamp Duty Tax than £175,000.

See more about stamp duty on the government website – https://gov.wales/land-transaction-tax-guide

Moving > bigger house> larger mortgage

This is possible, however… please refer back to our previous point regarding stamp duty or ‘Land Transaction Tax’ as it’s known in Wales.

Full underwriting will be done in order to access the new affordability, however equity from your existing home may help you get to where you need to be easily OR if not the equity you were expecting can provide a nasty surprise.

Speak to your Mortgage Adviser if you have any more questions.

Moving > cheaper house > smaller mortgage

To state the obvious, if this is what you want to do, you can do it and it will mean smaller monthly payments, however still subject to full Mortgage Underwriting if your financial situation is now worse. In some cases, individuals are surprised that they can actually now buy a smaller home outright as their home gained so much equity.

Moving > negative equity

This can be very difficult and your options will be limited. It is best you give us a call to speak to an adviser to give you a quick idea of what your options are. 01792 416260

What is the best way to look at my options when moving?

At first, we advise going through some figures in your head, on a piece of paper. Write down what you have earned on average in the last 3 months (Employed), or last 3 years (Self-Employed). Then go through one of our first points, multiply that by 4.5, 5 and 5.5 x Annual Salary or Net Profit.

Then use our Mortgage Calculator to see if you are comfortable with monthly payments based on the figures you are looking at.

If you are unsure about any of the above or you are now ready to speak to an Adviser, give us a call on 01792 416260, speak to us on our chatbox facility or other forms of communication, i.e. Facebook, personal mobile phone numbers etc.

Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage


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