A home mover mortgage isn’t any different to a standard mortgage. It’s simply the process of getting a new mortgage when you move house so the mortgage is suitable for the house you’re moving into. Choosing the correct mortgage for you is critical as you will need to ensure it is still affordable whilst suiting your changing needs.
Home mover mortgages are typically for people who are stepping up the property ladder and looking for a bigger home, and as a result are also looking to increase the size of their loan amount. Many mortgages are ‘portable’, which means you can take your existing mortgage to your new home, others are not, requiring you to look for another option when moving home. You might also find that your current loan provider won’t allow you to borrow the additional amount necessary for you to move home.
Even if you aren’t looking to borrow more money, changing your mortgage when you move house, rather than transferring the current one over, can help to better suit your new circumstances and get you a better deal.
When a client enters into a contract for their initial mortgage they are bound by the terms and conditions of this and might be subject to a fee when leaving that current deal. The process of changing any mortgage to a different lender or product is classed as remortgaging.
As with any remortgage, you should check whether there are penalties - also known as Early Repayment Charges (ERC) - for ending your current agreement earlier than contracted. You should check if these exist on your current mortgage before considering changing your mortgage.