When moving home, it can be difficult to know what the best option is for you in terms of your existing mortgage and the payment plan for your new property.
What are your options?
Below, we have outlined some of the options that may be available to you if you are looking to move home. If you feel that one of these options would suit you, you can speak with one of our advisors and gain a more detailed understanding of the process and they will be more than happy to assist you in achieving your target.
Port your mortgage
If you are an existing mortgage customer, you may be able to port your mortgage from your existing property to the new home you wish to live in. This may need to be increased or decreased depending on your circumstances.
A further advance is essentially an additional borrowing on top of your current mortgage deal, this becomes an option when you are looking to move in to a property that holds a value greater than that of your existing home. You will typically pay a different rate of interest on this loan and it can often be cheaper than a personal loan.
If you have a mortgage on your existing property that is greater than the value of your new home, you will have to pay back the difference between the two. Doing this may mean that you have to pay an early repayment charge on the amount you pay back.
Let to buy
This option is ideal if you are looking to move in to a new residential property but you’re not comfortable with selling your existing property, either because you think it might appreciate in value, hold a good rental income, or you haven’t ruled out moving back in to it one day. This strategy allows you to begin renting out your existing property while you move in to a new home.