Mortgage Advice for Home Movers
Moving home is a really exciting time. There are a lot of fun parts you get to enjoy – such as viewing houses, exploring local areas, choosing new furnishings – but these are sometimes overshadowed by the more stressful parts, like arranging a mortgage.
John Charcol is an independent mortgage broker with access to the whole of the market. We not only provide mortgage advice for moving home, we manage your entire property-buying journey so you can enjoy this experience - like you’re supposed to.
Keep reading for information on the mortgage options available to you and how our experts can help you, or see our Guide to Moving House for a detailed walkthrough of how it all works, tips on buying a new home and our moving house checklist.
Have a more specific question you need answered? Ask our mortgage experts.
Compare the Best Mortgage Deals for Moving House
You can compare mortgages for moving home with our best buy tables below:
Porting a Mortgage vs Switching a Mortgage
When you move from a home you already have a mortgage on to a new property, you typically either switch to a new mortgage with a new lender or take your existing mortgage with you to your new home via “porting”.
Porting Your Existing Mortgage
When you “port” a mortgage, you transfer your existing mortgage from your existing property to your new one.
Technically, your existing mortgage is repaid upon the sale of your existing property and a new version of the same product is taken out on the new property. This happens at completion.
You may want to move home with your existing mortgage if you have a particularly competitive rate that you want to keep, or to avoid any ERCs (early repayment charges). You’ll need to ask your lender or broker whether your mortgage is portable.
Even if your mortgage is portable, you still may not be able to take it with you as you’ll have to reapply for the mortgage with the lender and may not qualify if your circumstances and/or the criteria have changed, or the property you’re looking to buy is deemed unsuitable security by your current lender.
Learn more about porting your mortgage when moving house in our guide.
Switching to a New Mortgage When Moving House
It’s more common to switch mortgage products when you buy a new house, than move your existing mortgage to the new property. Sometimes, people switch providers because their lender won’t let them port their current mortgage, but usually people switch simply because there are better deals available.
When you switch to a new product, your existing mortgage is repaid upon the sale of your existing property and a brand new product is taken out on the new one. This also happens at completion. Learn about managing the property chain in our guide.
See what’s currently on the market with our free mortgage comparison calculator.
HOW JOHN CHARCOL CAN HELP YOU MOVE HOME
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Our Moving Home Mortgage Process
1. First Conversation with Adviser
When you phone us, you can either arrange a phone appointment with your adviser or a face-to-face meeting – whatever suits you. Your adviser will ask you some questions then go away and find you the best deal for your circumstances and future needs. They’ll organise a follow up during which they’ll present you with what they’ve found.
2. Decision in Principle
Once you’re happy with your adviser’s recommendation, they’ll go about securing your DIP (Decision in Principle) - which is basically a promise from the lender that they’ll loan you money on the condition that the information you’ve provided is correct and subject to a valuation of the property.
3. Offer on Property
After you’ve secured a DIP (Decision in Principle), you’ll be in a great position to make an offer on a property. Sellers like DIPs. They show you can afford the purchase. What’s more, the fact that you’ve already started preparing for the transaction highlights to them that you’re serious in your intention to buy.
4. Pre-Application and Submission
Following the acceptance of your offer, we’ll send you some information which explains all the documents we need to submit to the lender. You’ll be assigned a client relationship manager who’ll check and submit certified copies of your documents; they’ll liaise with both you and the lender. Your adviser will then submit the fully packaged mortgage application.
5. Lender Underwriting and Valuation
The lender will underwrite your application; this basically means they’ll verify that the information you’ve provided is correct and review all your documents for themselves. They’ll also instruct a valuation for their purposes on the property you want to buy to make sure there are no significant problems with it.
6. Mortgage Offer
If the lender is happy with everything they’ve found, they’ll send you a mortgage offer. They’ll also send us a copy.
After you’ve accepted your mortgage offer, you’ll go through the legal part of the process, known as conveyancing. This is where the solicitors/conveyancers draw up contracts and organise the actual, legal purchase of the property. You’ll also need to arrange buildings insurance at this stage, making sure it’s in place from exchange.
8. Exchange and Completion
Once everything is in place, your conveyancer/solicitor will exchange contracts with the seller’s conveyancer/solicitor. If your deposit is coming from savings or a gift, then it’s at this point that you put the deposit down and are legally bound to the property. You’ll lose your deposit if you pull out after exchange. If your deposit is coming from the sale of your current property, then it’s transferred at completion as part of the whole purchase. The purchase completes when the money is transferred on an agreed-upon date. This is when you get the keys to your new home.
Not only do we arrange your mortgage, we can find you a conveyancer from our select panel. Our recommendation will be based on your situation and timeframe to ensure your move goes according to plan.
With our Concierge Service, we can help you move into your new home, set up utilities, register for Council Tax and more. There’s no arrangement fee and you could save up to 8 hours of hassle.
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Excellent advice throughout and very reliable. It was a long journey to getting our flat but I always felt very satisfied with the advice given and the speed of response. I always felt Bruce went the extra mile and given it was a 2 year process and rates changed, I knew Bruce was constantly getting the best rate for us. There is nothing better than being able to trust your adviser especially with lots of other variables in the process and I can’t thank him and John Charcol enough for the excellent advice and treatment throughout the process.Posted
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What Are the Mortgage Costs When Moving House?
We’ve listed some of the costs you might face when taking out a mortgage loan and moving house, below.
You pay Stamp Duty when you buy a property or piece of land over a certain value in the UK. Find out how much you’ll pay with our Stamp Duty calculator.
When a lender’s considering your application, they’ll arrange a mortgage valuation on the property you want to buy. It’s a way for the lender to make sure the property is worth the minimum amount you want to borrow and is suitable security for a mortgage.
After you accept your mortgage offer, your solicitor arranges all the paperwork for your new property. Talk to your solicitor to find out how much they charge. Alternatively, we can help you find a conveyancer with John Charcol Legal.
All lenders require that you take out buildings insurance on your new property when you move house. You may also want to consider contents insurance.
It’s normal for brokers to charge a fee for arranging your mortgage. This should always be discussed with you during your first call or meeting with your adviser.
Unless you’re moving all your belongings and furniture yourself, you’ll likely want a removal company. We can help you organise removals with our free Concierge Service.
If you’re porting your mortgage and borrowing a larger amount, your lender may charge a product fee.
ERCs (Early Repayment Charges)
You’ll only pay an ERC if you pay back your current mortgage before the introductory period ends in order to switch to a new product.
Lender’s Arrangement Fee
The lender’s arrangement fee covers the costs of organising your mortgage. It can be a flat fee or a percentage. Your lender will tell you how much you’ll pay in arrangement fees.
A booking fee is a one-off application fee you pay to book and reserve the rate for the mortgage while your request is processed.
Moving House Mortgage FAQs
Do You Need a Deposit When Moving Home?
You need a deposit when you move home whether you’re taking out a new mortgage on the new property or porting your existing mortgage. You put down a cash deposit at the exchange of contracts. If your deposit is coming from the sale of your current property, it will be transferred at completion.
Do You Have to Pay a Deposit When Porting a Mortgage?
You still pay a deposit when you port a mortgage as there are no 100% mortgage products on the market anymore. Therefore, you need a deposit to add to the mortgage to make up the full purchase price of the property; often the deposit will come from the proceeds of the sale of your current property, but you can also use savings or an inheritance.
Can I Move House with a Fixed Mortgage?
If you have a great fixed mortgage rate you don’t want to lose, you can ask your lender whether your mortgage is portable. If it’s not, you may be able to switch to a new – and possibly better – fixed rate mortgage product with a different lender.
How Do I Downsize My Mortgage?
You can sometimes downsize your mortgage when you move home if you take out a mortgage for a property that’s worth less than your current property. It’s important to note that any ERCs (early repayment charges) on your existing mortgage will still be charged on the amount of your existing mortgage that you actually repay whilst downsizing.
Can I Get a Mortgage on a Home if I’m over 60?
There are later life lending options. See what our expert has to say about mortgages for people over 50 and 60.
Should I Get a 5, 10 or 20 Year Mortgage?
There are a few different factors that determine which mortgage term you should choose.
- Why you’re moving
- How long you plan to live in your new property
- What you can afford in monthly repayments
- The amount you want to borrow
- When you are looking to retire
- Any expected future financial changes (expenditures or incomes)
Your adviser will guide you through the options and find you the mortgage that best suits your current and future needs.