How To Move House With A Mortgage

If you’re wondering if it’s possible to move house with a mortgage, this short guide will tell you everything you need to know.

What happens if you want to move house with a mortgage?

Even if you still owe money on your house, it’s more than possible to move.

A mortgage is only secured on your current property. This often means that when you move, you will pay off your current mortgage in full. If you’re purchasing a new property and need to borrow money, you will need to acquire a new mortgage.

How to move house with mortgage

A mortgage advisor will be able to advise on the best course of action and what you’d be likely to afford on your next property. They will also be able to discuss options you may not have thought about, such as renting your current property to tenants.

There are some questions you will want to ask your advisor before moving house with a mortgage.

These include:

Do any penalties apply to moving house with a mortgage?

If you’re paying a mortgage off early or looking to transfer a mortgage, there may be some penalty fees attached to this. It’s worth knowing how much these are so you can budget accordingly.

Is the current mortgage portable?

However, sometimes mortgages are portable – meaning you can get a new mortgage without paying the penalties.

Not all mortgages will be transferable. It will depend on what’s outlined in your mortgage terms.

Moving to a cheaper house mortgage

With most mortgages, you will only be able to transfer them if it’s approved by your lender. With an equity release plan, if you’re looking to downsize then you may have to pay off your mortgage as the new property is not likely to be a suitable match when it comes to value.

Can you move house on a fixed rate mortgage?

The good news is that many fixed rate mortgages are portable, meaning that it’s more than possible to move house, even when you haven’t come to the end of your term.

Speak to Agentis

Speak to Agentis today – your expert mortgage advisors in Peterborough. We can advise on how to move house when you still have an outstanding mortgage and help you find a new mortgage should you require one. Book your free initial consultation with us now.