People choose to move house for many reasons and quite often the need for more space is a major factor – but it is possible to take your existing mortgage with you?
Applying for a mortgage can be time consuming and if your circumstances have changed, but you have a mortgage deal in place, you may be put off moving by the thought of having to go through the process all over again.
Porting a mortgage
The good news is that it is possible to take an existing mortgage with you to another home – that is as long as it is ‘portable’. However, porting your mortgage will mean being assessed for suitability once more.
When applying to port your mortgage the building society will carry out the same checks as it would on issuing a mortgage, which means that a change in circumstances could rule a transfer out.
If nothing has changed and you have the financial capacity to meet any increased costs involved in moving them the next step is to start selling your house.
Or alternatively you might want to shop around and see if there is a better deal on the market, bearing in mind any costs that will be incurred on leaving your present mortgage.
Consider the costs
If you are refused a request to port your mortgage you could consider taking out a different mortgage that meets you needs, again being wary of any penalty payments that need to be met.
There is also the chance that the terms of a new, higher mortgage, if secured, will be less favourable.
Likewise choosing to meet any shortfall with a private loan needs to be considered very carefully due to the financial burden it could put you under.
Rather than moving it may be worth considering remortgaging your home and adding an extension.
Moving to meet the needs of any expanding family is often a necessary part of life, and of course the dream of finding your perfect home is a strong incentive.
Making sure the correct financial arrangements are in place is essential to your long-term happiness and security so always ensure the right decision has been made by taking professional advice.
For information and advice on conveyancing please contact Anthony Stockton Solicitors.