As our lives change and grow, so does our need for space. If you have out grown your current home or just want to move to a more suitable area or nearer to family, then you need to be prepared.
It is possible to transfer your ongoing mortgage from one property to another, known as porting, but this depends on the lender’s criteria and may work out more expensive in the long run or require an early repayment charge. You will find this information with your current mortgage terms and conditions.
Depending on the existing equity in your home it may be possible to use that equity to partly fund buying a new property. If equity has built up on your current home or it has increased in value since you bought it, it is feasible to use this equity as a lump sum of cash towards your new deposit. It is wise to find out the minimum amount you need to deposit as you will only get a percentage of what your property is worth and paying the higher amount will often get you a better mortgage deal.
You will find the amount you can borrow from the personalized commitment-free mortgage promise, which is provided by an agreement in principle (AIP).This will give you a clear idea about the properties you could afford and portrays you as a committed buyer.
Along with a deposit there are some other costs you will have to bear yourself. This includes conveyancing fees, stamp duty, land tax, valuation fees, land registry fees and other unexpected expenses, so it’s helpful to have a reserve fund to cover them.
Whether you are an existing customer to a mortgage lender or simply regarding your options, you should speak with an advisor. It will be beneficial as you will get to know the amount you can borrow and other vital information you must know in regard to buying a new home or transferring your existing mortgage.