What Happens To Mortgage When You Move House?

So, you have a mortgage but you want to move house. You may worry that this will spell complications for your move. In this guide we’re revealing exactly what happens to a mortgage when you move house, so you won’t have to second guess the best course of action.

What are your options?

When it comes to moving house with a mortgage in tow you have two options: you can pay off your existing mortgage and get a new one, or, you can transfer your current mortgage to your new home.

Transferring your mortgage – is it worth it?

First things first you will need to check whether your mortgage is transferable. It should mention this in your contract or you can check with your mortgage advisor.

There may be penalties associated with transferring a mortgage to another property which is something you should be aware of.

What about if you need a larger mortgage?

The rate applied to the top up mortgage amount could cause complications. You may be able to get the additional funds for the same rate, but you may struggle to find a lender that offers this. That’s where consulting your local mortgage broker can come in handy.

If you end up with different rates the end dates for these rates will also be different making it more difficult to change lenders in future. You may essentially end up with two mortgage products under one mortgage contract so it’s certainly worth getting a professional opinion before signing up to such a financial commitment.

Is it better to get a new loan or keep your current one?

Gauging the rates is a key indicator of whether it’s worth keeping your current mortgage or getting a new one. Even factoring in those early redemption fees, you may still be better off changing your mortgage.

The calculations that help determine what should happen to your mortgage when you move house can be a little complicated. But that shouldn’t discourage you from moving house and enjoying the lifestyle that’s right for you.

Looking to transfer a mortgage but don’t know where to start? Speak to one of the professional mortgage advisors at Agentis today. Our personable team will be able to break down whether you’d be better off transferring a mortgage or paying it off and getting a new one. We speak in layman’s terms meaning you can understand the best course of action for you. Speak to our expert  Peterborough-based mortgage brokers  today to arrange your free initial consultation.