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How To Plan To Shift Your Mortgage For Moving Home?

If shifting to a new home also brings the situation of shifting of mortgage, certain conditions are necessary to bring in consideration.

Molly Harris
23rd May 2019
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Priorities keep changing and when it comes to the biggest asset of home, your keen eyes always keep searching for the BETTER. You are currently living in your own home but now want to move to a new one. Location preference, career, relations, climate, crime rate any reason can provoke the moving of home.


The prime concern that arises in this situation is for your mortgage of existing home. You needs to shift to the mortgage for new home. To be precise you need remortgages. This is the most time-consuming work of shifting or buying a new house. If you have already the burden of other mortgage. But don’t worry due solutions are available! you can transform this rocket science like task into an easy and achievable thing.



Get into a detailed discussion with your lender

Before the formalities of remortgage start, it is necessary to make an action plan. This can help decide how things need to reach to the implementation stage.


·  Varied aspects that are involved when you shift a mortgage -


Remortgage


Work on all the aspects with utmost care as remortgage is not less than a first time mortgage. The new thing is only the home, rest of the procedures are more or less same. Especially, if you need to borrow more funds for the new property. it is obvious to cross the affordability and eligibility gates again. in remortgage, fee, penalty and additional interest charges are bigger concerns that were not present in the first time.


Scrutinise for better deals in the current loan

Nothing should go beyond your affordability and for that, it is necessary to ensure that the new deal fits to your pocket. Study on every part; take a look at the arrangement fee that is involved in the mortgage for moving home. Ask the lender to provide the best possible rate.

Certainly, the lender is aware of your financial capacity as until now you are paying the installments for the first home. The transfer of mortgage should reflect that. in fact a very friendly conversation could take place on how to take things forward.


Assessment of credit and creditworthiness in case of more funds

If the new home demands more money, the lender is sure to get curious about the actual amount of credit. Also, how can you afford to repay that? You may need to cross more stages. than you did at the time of first mortgage. Current income-outgoing ratio, tenure, affordability against the price of new property. Impact of interest rate on affordability, everything includes.


The one prime thing that remains in focus of all these aspects is your financial situation. This is something where lender is in the lead role. whatever is going to happen is sure to happen according to its own guidelines and policies.

mortgage for moving home

However, on personal terms (as you are an existing client) some relaxation can be expected on the interest rate, fees and penalties. But make sure that the final outcome is according to your own expectations. If required, give time to this work. as mortgage is a long-term obligation and cannot be neglected for even an hour.


Factors that help get an easy shift of mortgage

The rules and regulations are never going to change but an applicant always has the weapon of repayment capacity.



· Increase in income helps borrow desired amount on new home

If with time, you have grown well in your career and now have achieved promotion and increment, definitely the income is good. This means the lender can expect better affordability. They can open the doors to lower rates and cheaper remortgage deals.


·   A good deposit amount

If you have saved in the last years and have a good deposit amount for the new home, it is greatly beneficial. This can reduce the additional amount that is required to add in the current mortgage.

Sincere efforts are necessary to achieve a smooth shift of mortgage. Do the desired study, sit with the lender and most importantly, if possible, try to arrange more and more deposit. This is the best support to ease the stress.


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Authors
Molly Harris

Hi, I am Molly Harris Mortgage Loan Officer at Shine Mortgages I have been providing several personalized mortgage deals to buyers. Whether you’re a first-time buyer or you are looking forward how to apply for a mortgage, her advice can help you get the best deal.

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