It is no surprise that everyone moves home at least once in their life. Relationship changes, new jobs, or just looking for a change are some of the reasons why people leave their humble abode in search of a new house they can call home.
But it is never this easy. There are so many things that you need to think about before starting your life in a new home. Do you need to update the interior? Is the driveway or patio in need of an improvement, that companies like https://concretecompanyhouston.net/ can help with? Can you afford it? While these questions are all essential, one of the most important questions you need to ask yourself is what is going to happen to your mortgage.
Well, if you are moving, but still have a mortgage, the process is easy enough because mortgages are normally portable. Below we look at some of the things you need to bear in mind in this situation.
Speak to Your Mortgage Company
It’s best to involve your current mortgage company when you are considering moving and listen to any advice they might give. Mortgages, by definition, tend to be portable, which means they can be transferred easily from property to property. Lenders want to valuate property, and it could be that you’ll need to borrow a greater amount of money. There are also other fees that could be involved in paying for a transfer.
It could be, especially when financial situation is difficult, and are looking to borrow more and upsize, that your existing mortgager won’t let you. When you’re not allowed to move your mortgage, then the only other options open to you are staying in your current property or settling for paying early redemption penalties and moving to a different lender.
That is why, if you are looking to take out a new mortgage you should give as much thought as possible to when and where you might be moving next, before getting ‘trapped into a brand-new mortgage deal. Moreover, if you are moving long distance, you may also have to consider other expenses, including movers and packers (perhaps similar to http://www.atlantahomemovers.com/), storage facility to stow away unnecessary household items, etc. So, after calculating all the losses and profits, you can consider getting a portable mortgage.
Stricter Credit Check
It’s likely that you’ll undergo a much stricter credit assessment than before the crunch, so you need to expect that you’ll be asked more questions than previously and as a result, will involve more paper-chasing before you can move mortgages. If you are looking to transport the current deal to a brand-new property, you need to bear in mind you have to meet the criteria of your lenders at the time. Therefore, even if your own circumstances haven’t changed, your lender might use stricter criteria, meaning you are not eligible for moving your mortgage.
Check out your credit report on the likes of Noddle to see what information is held about you.
Find a Better Deal
It’s not impossible to find a better mortgage deal, but you save money more easily, if the deal you currently have is free of penalties. Mortgages are far more competitive for people moving to a new house and do not feature fixed rates starting from 3% upwards and fixed rates at a higher rate.
Remember that you need to think of how other charges and the arrangement fee might affect the mortgage cost.
Penalties for Remortgaging
When you are moving to a new house, there is the opportunity usually to find better mortgage deals. You should always check when remortgaging if there were any penalties outstanding on your home loan. There could be additional interest charges and extra fees if you’re on a discounted or fixed deal and in the special offer period of that loan that is out with the mortgage lender’s normal variable rate. To make sure you are as well off as possible by switching mortgage lenders, make sure you find yourself a deal that is cheap enough to cover for these penalties.