When moving home you might decide to end your current mortgage and start a new one, perhaps so you can make lower monthly repayments, or to get a different type of mortgage altogether.
Alternatively, you can move your current mortgage to your new property (sometimes called ‘porting’) - it might be more cost effective if you’re subject to early repayment fees.
Moving house could be a great opportunity to change your mortgage, but it could prove more beneficial to port your current mortgage instead, depending on your circumstances.
Getting a new mortgage for your new home could be right for you if:
Alternatively, you might prefer to port your current mortgage if:
Just like when you got your first property, there are additional costs to consider when getting a mortgage and moving home.
If you leave your current mortgage before your initial deal finishes, your existing lender will charge you a percentage of your current mortgage
This is an amount you pay your current lender when you repay your mortgage.
If you’ve paid a mortgage account fee, the closure of your account might be included in that, so you might not have to pay the exit fee.
This is what you pay your existing lender for forwarding on your title deeds to your solicitor, but not all lenders charge it and it could be called a mortgage completion fee, an administration fee or a discharge fee.
If you're not comfortable handling your mortgage application by yourself, or you need advice before you commit to a mortgage, factor in these costs
This is the fee you pay your new lender to set up your mortgage
What you pay your mortgage lender to check the new property’s suitability and evaluate its worth.
This is the amount you pay your solicitor for any legal work required to get your new mortgage.
This could include the amount you pay removal companies to transport your belongings, how much you’ll need to budget to buy new household items, and the price of home insurance
For online mortgage comparison and advice Gocompare.com introduces customers to MortgageGym Limited which is authorised and regulated by the Financial Conduct Authority. MortgageGym brokers will charge a fee, which is payable when your mortgage application is submitted. The fee will depend on your circumstances and will be discussed with you at the earliest opportunity. Gocompare.com holds a controlling investment in MortgageGym Limited.
UK Finance Regulated Mortgage Survey. Homemovers affordability in the UK, June 2019