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Moving home
Two transactions at once, and one adviser holding both together.
Selling and buying at the same time is the most stressful move most people make. There is a chain, a deposit tied up in a house you have not sold yet, and a mortgage that may or may not be worth taking with you. We work out the order things need to happen in.
Take it with you, or start again?
Most modern mortgages are portable, so you can move the existing rate to the new property and avoid an early repayment charge. That is often the right answer and sometimes it is not, because the new lender may be cheaper, your borrowing may need to go up, or the port may fail affordability on today's rules. We price both.
- Porting your existing deal compared against a new lender
- Early repayment charges checked before anything is decided
- Borrowing more on top of a ported rate, priced as two parts
- Let to buy, where you keep the current home and rent it out
- Bridging where the sale and the purchase will not line up
Step by step
The order things need to happen in
Work out your real budget
Equity from the sale, less the outstanding balance, less fees, plus whatever you are adding. That figure sets the price range, not the asking prices you have been looking at.
Decide on the existing mortgage
Port it, or leave it and pay the early repayment charge. We put both totals in front of you rather than assuming the port is cheaper.
Get an agreement in principle
Estate agents will ask before they take your offer seriously, particularly if you have not yet sold.
Line the two dates up
Exchange and completion on both properties normally need to happen on the same day. Where they cannot, bridging finance covers the gap, at a cost.
Review the protection
A bigger mortgage usually means the cover you took out last time no longer clears it. Worth twenty minutes.
Questions we get asked
Before you call, these might help.
Can I take my current mortgage with me?
Usually, if it is portable and you still meet the lender's affordability rules, which will have changed since you took it out. Porting is a fresh application against the new property, so it is not automatic. If it works, you keep your rate and avoid the early repayment charge.
What if I need to borrow more than the amount I am porting?
The extra is normally taken as a second part on a separate rate, so you end up with two sub accounts ending on different dates. That is manageable, but worth planning so they can be brought back together later.
What happens if my buyer pulls out?
If you have not exchanged, the chain stops and the mortgage offer on your purchase stays valid for its remaining term, usually three to six months. If you have exchanged on the purchase but not the sale, that is where bridging finance comes in, and it needs a conversation quickly.
Should I sell first or buy first?
Selling first puts you in a stronger position and is what most agents will advise, but it can mean renting in between. Buying first needs either bridging or a let to buy arrangement. Neither is wrong, they just cost different amounts and carry different risks.
What is let to buy?
You keep your current home, remortgage it onto a buy to let, and use the released equity as the deposit on the new one. It works well for people who do not want to sell into a slow market, though you will pay the additional property stamp duty surcharge on the purchase.
Next step
Fifteen minutes will tell you where you stand.
Pick a time that suits you and we will talk through what you are trying to do. There is no cost for the initial advice and no obligation to go ahead.
Prefer to talk now? Call 01282 937599 or email cristian@cdfmortgages.co.uk.