When you decide to move house, one of the biggest financial decisions you need to make is how to handle your mortgage. Essentially, you have two options: porting your existing mortgage or taking out a new mortgage.
Porting your existing mortgage means taking your current mortgage deal with you to your new property. This can be a good option if you have a good interest rate and are happy with your current lender. However, it's important to note that not all mortgages are portable. You need to check with your lender whether your mortgage is portable and what conditions and fees might apply.
If your existing mortgage isn't portable or you're not happy with your current lender, you can take out a new mortgage. This means going through the mortgage application process again, including affordability checks and property valuations. You can choose to stay with your existing lender or switch to a new one. It's important to compare different mortgage deals and lenders to find the best option for your circumstances.
Another factor to consider when moving house is whether you need to borrow more money. If you're moving to a more expensive property, you may need to increase your mortgage to cover the cost. If you're taking out a new mortgage, you'll need to demonstrate to your lender that you can afford the higher repayments.
It's also important to consider any fees associated with moving house and taking out a new mortgage. These can include valuation fees, arrangement fees, legal fees, and early repayment charges. Make sure you factor these into your budget when deciding which mortgage option is best for you.
Overall, moving house can be a complex financial decision, and it's important to seek advice from a mortgage advisor who can guide you through the process and help you find the best mortgage deal for your circumstances.
If you're considering moving house and want to explore your mortgage options, contact clsmoney.com today. Our expert mortgage advisors can provide personalised advice and help you find the right mortgage deal for your needs.