Moving Home
Mortgages

Wanting to move house but not sure what that means for your existing mortgage? Whether you’re ready for a change of scenery, downsizing or upsizing, our team at Mortgage Synergy is here to talk you through your mortgage options.

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Moving house with a mortgage

Many clients get a mortgage on a property and eventually end up moving to a new place later down the line. If you’re planning a move, there are several options available for your mortgage.

Keep your current mortgage

You can keep your current deal and move it to your new home. This is known as ‘porting’ your mortgage. In this scenario, your mortgage comes with you. The existing balance is transferred to your new home, and you avoid any early repayment charges (ERCs). You also tend to keep your current product rate.

This option is often available as long as the new mortgage starts within 90 days of selling your current property.

Keep your mortgage and borrow more

Perhaps you need to borrow more towards a new home. If this is the case, you can choose a new mortgage deal for the additional sum and continue to pay off your existing balance. With this, you may repay the new sum over a different period of time.

Apply for a new mortgage deal

If your needs have changed since securing your mortgage, you might want to explore new rates. This route of mortgaging a new property may incur an ERC if your current deal is on a fixed rate. It also depends on your mortgage terms.

However, if there’s less than nine months left on your mortgage, you won’t pay an ERC if you borrow the same amount or more than your current mortgage. As a broker, we can remove your ERCs in some circumstances, whereas many lenders won’t do this.

What to do when moving home with a mortgage

Before deciding upon a new property, it’s important to:

Check your mortgage terms to see if your deal is portable and whether there are any fees
Confirm eligibility — you may be able to port your mortgage, but you also need to meet the lender’s current affordability criteria
Contact your lender and request a redemption figure (the exact remaining balance left on your mortgage)
Get a valuation on the property you wish to buy
Calculate your full cost of moving, such as agent fees, solicitor fees (both buying & selling) and stamp duty fees. We can help you calculate these to ensure the move is affordable.

Can I sell my home before the end of my mortgage term?

You can sell your home provided it’s within your affordability to do so, e.g. you can afford to pay off the remainder of your mortgage.

It’s important to remember that there may be extra costs if you’re wanting to redeem all or part of your mortgage. You can check this by consulting with your lender or one of our mortgage brokers.

What happens to my mortgage when I sell my property?

Unless you’re porting your mortgage, your existing deal will be paid off when you sell your property. The solicitor or conveyancer handling the paperwork will contact your lender for a redemption statement and repay the outstanding loan amount to them out of your buyer’s completion funds.

Should you require a mortgage for your new property, a separate application is necessary. This will need to be done if you’re porting your mortgage or applying for a new deal.

What if I’m unable to port my mortgage?

If for whatever reason you’re unable to port your mortgage, you’ll have to get a new mortgage. Here, your best course of action is to speak to one of our brokers.

We have whole of market access, meaning there are plenty of lenders available to you. So, get in touch with our team for more information and support.

Your home may be repossessed if you do not keep up repayments on your mortgage.