What are home movers mortgages?
You’ll be classed as a home mover if you have an existing mortgage and are planning to purchase and move to a new property. This doesn’t mean you’ll need to change your mortgage, but it can be a good idea, and understanding the ins and outs of this process is vital to getting the right deal.
We hold a free initial meeting to help us understand your needs. This informs our market research and can ensure you get the best deal. We discuss budget and related costs like stamp duty, estate agent fees, professional costs, and deposit requirements. We go the extra mile, giving you personal advice with no upfront fees and acting as a helping hand for the lifetime of your mortgage.
How to qualify for a home movers mortgage
Before you can qualify for a home movers mortgage, you first need to meet some basic criteria:
Home ownership
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You must already own a property.
Sell to buy
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You can be eligible if you’re looking to sell your home to buy a new residential property.
Keep and buy
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You may also be eligible if you’re looking to keep or rent your existing property and buy a new home.
Minimum equity
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You must have equity in your property, although the minimum requirement depends on the situation.
3 months employment
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Most lenders require you to be in permanent employment; however, we might still find lenders for those with new and non-permanent roles.
1 year self-employment
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If you’re self-employed, you will need a minimum of 1 year of trading, although most lenders will want you to have a 2-year history.
Helping you move your home
Your journey begins by choosing the right mortgage broker and ensuring they can help you achieve your goals. By following our simple process, you can put yourself in the best position to get a great deal for your property and for your new dream home.
Get mortgage ready
Speak to an advisor. They’ll understand your budget and buying power, then make sure your deposit sources, income requirements, and paperwork are all in order.
Have an Agreement in Principle ready
By ensuring you have an Agreement in Principle, you can be in the best position to deal with estate agents and be ready to put an offer on a property, helping you to secure the property you want. This also soothes the stress of the process, helping you give the required information when its needed.
Find your new home and, if selling, put your existing property on the market
Browse the market to find the right home for you. Once you’ve found a house you like, and had an offer accepted on it, get back in touch with us to continue to process. We can liaise with the estate agent on your behalf to ensure all the information necessary to secure the offer is provided. We can also support you with the solicitor’s recommendation, and assist with completing and providing paperwork, ID, and Proof of Deposit documents.
Apply for your mortgage
Now that your offer is secure, we can recommend the most suitable mortgage for you. If you’re happy with what we recommend, we can move on to submitting your mortgage application to the lender and for valuation instruction. We will also ask you to send us any updated documents that we don’t already have.
Protect yourself and your home
Once the details of the mortgage have been worked out, we can look at the various options available to you for protecting your home and belongings. We can help you to ensure you and your family remain in your home, no matter what happens in the future.
Mortgage Offer
If the lender is happy with the documentation and the valuation, they can proceed to the Mortgage Offer. When this occurs, you will be approved to borrow the required money from the lender and can proceed with the solicitor’s work. At this stage, there are a few things to consider:
- Whether or not your deal has early repayment charges
- If there are fees are attached to your mortgage deal
- How much your monthly repayments will be
- Interest rates
- The length of your mortgage term
Solicitors work
Once the solicitors receive the contracts and the Mortgage offer, then can begin instructing searches on your property and sending enquiries to the vendors solicitor. After these have been received, which often takes from 6 to 8 weeks, they will arrange an exchange and completion date with all parties involved.
If you are selling a property, you will also need to ensure that all paperwork for the sale of your property is done so that your solicitor can prepare for the sale.
The solicitor will request the mortgage funds from the lender and ensure that any protection policies are given a start date.
Get the keys to your new home
Congratulations! It’s time to move in 😊.
You will receive your first payment notification by text, email, or post. This will confirm your mortgage account number, your Direct Debit details, and the amount and date of your first mortgage payment.
Receive further support from us
We’re still here for you.
When the initial period on your mortgage ends, you’ll likely be moved onto your lender’s standard variable rate (SVR). The SVR is usually much higher than your previous rate, meaning your mortgage repayments can increase significantly.
We’ll get in touch when it’s time to start looking for a new mortgage deal. It’s usually a good idea to start looking for a new deal about 6 months before your mortgage’s initial period ends.
If you are moving home, did you know?
You can keep your existing property with your current lender and ask for permission to let.
You can also transfer your existing mortgage terms and conditions to a new property if you are within the timeframe for an early repayment charge through a process known as “porting”.
You can change the ownership of properties as part of the home movers mortgage process with a transfer of equity.
You could borrow on an interest only mortgage, subject to certain conditions.
Frequently asked questions from our home moving customers
Make your move go smoothly by reading through our answers to common questions from our customers.
Can I raise money from my existing property to help with a deposit for my new property?
Leveraging the equity in your current property can be a great way to help fund the deposit for your new home. You can also use your existing property to raise money in other ways, such as through Let to Buy.
Can I add someone to my mortgage to help with affordability?
Yes! Having multiple people on your mortgage can be a great way to share the costs and improve the affordability of your property, while also sharing in ownership.
What documents will I need to provide?
You will be required to initially supply the following documents, based on your situation and requirements:
- ID documents for each applicant, such as a passport or driving licence.
- Proof of address for each applicant, such as utility bills dated in the last 3 months, bank statements, or council tax statements.
- Proof of income and expenditure, by way of personal bank statements from the last 3 months.
- Proof of income for employed applicants, by way of P60 and payslips from the last 3 months.
- Proof of income for self-employed applicants, by way of self-assessments from the last 2 years or the most recent set of accounts.
- Proof of deposit from the last 6 months of bank statements, if the deposit comes from savings. Gifted deposits will require bank statements and ID for the person gifting.
- Proof of UK residency, by way of residency card. You will need to share your code to prove your settlement status.
We have the right to request further information throughout the process, as and when it’s required.
Can I port my existing mortgage?
Yes, if you are in a tie in period with your existing mortgage lender, to avoid penalties we could look to take your existing mortgage to your new home through a process known as porting. You can also borrow more at the same time.
Can I borrow on interest only (I/O)?
Interest only is becoming an option which more and more people are looking at. Each lender has their own specific criteria – if this is something you are considering, speak to one of our advisors to discuss your requirement further. You will need 25% equity in your property and a repayment vehicle that’s acceptable to the lender.
When can I increase my mortgage term?
When you look to move home, whether you are getting a new mortgage or porting your existing mortgage, we will reassess your individual situations to ensure your mortgage term is the most appropriate for you.
What is a Freehold vs Leasehold mortgage?
A house is normally freehold, meaning you own the land and property as detailed on the boundaries.
A leasehold is normally for flats and maisonettes. If you own a leasehold then you are a landlord who has bought the lease of the property, which you will own for a set number of years. Leases normally run between 80 years to 999 years, which allows you to own the property for a long time.
Sometimes you see properties with short leases – these are difficult get a mortgage on, and you would need to extend the lease either at or after completion.
Leaseholders also may have service charges and ground rent to pay to the freeholder each month. You should always check all costs related to leasehold properties and discuss any concerns with your advisor or solicitor.
Fee information
Although our initial advice and consultation are free, we do charge a fee for our service and for the maintenance of your mortgage. This is only payable at the Mortgage Offer stage, once you have received the mortgage offer from the lender. This is a lifetime fee to cover the advice and initial set-up, but also for our support for the mortgage through its term.
Our standard fee for a home movers mortgage is £650, payable on the production of the Mortgage Offer. Should you have any specialist requirements, such as adverse credit or irregular income, we reserve the right to increase our fee accordingly to £1,200.
Specialist lending
Not everyone fits in the same box. If you’ve got special circumstances, you may need a more specialist approach for your lending requirements – we can help you find the right solution for your situation.
Find out moreOur insights
Whether you’re in need of guidance for a general concern about mortgages, or just want to keep up with our thoughts on interesting developments in the market, our blogs and news posts are here to lend a helping hand.
