What is a home mover?
If you are looking to upsize to a bigger home or downsize to something more manageable, you are classed as a home mover. Generally you have the option to stick with your current lender or find another one, depending on your individual circumstance.
What is porting?
If you choose to remain with your current lender, you may have the option to port your mortgage across to your new property. This is something called ‘porting’. However, even though you are just moving your mortgage across, a new mortgage application is required – which is subject to a completely new assessment. If your new home requires that you increase the loan amount, then you will have to apply for an additional mortgage on top of the ported one. This can work out to be quite expensive so you might be better off just applying for a new mortgage. Porting is popular amongst folks that managed to secure an attractive rate when they got their original mortgage, so it makes sense to try and hold on to this.
Let to buy
If you are looking to rent out your current home and purchase a new one, you can do something called a ‘Let to buy’, This is where the mortgage on your current home is switched to a buy to let mortgage, which frees you up to take a residential mortgage on your new property. Let to buy is a great option for those who don’t really want to sell up. Additionally, it can allow you to release some equity from your current property to put towards your new one.
Let to buy is especially popular amongst couples looking to move in together. They might both individually own properties and when they decide to eventually move in together, they can remortgage their existing properties on a let to buy and jointly purchase their new home on a residential mortgage.
Early repayment fee (ERC)
Either if you are looking to sell up and move homes or decide to do a let to buy, it’s worth checking if there are any penalties – referred to as an ‘early repayment fee (ERC)’ Usually, if you are on a fixed rate deal, an ERC applies depending on how far down the fixed period you are.
