If you're moving, you'll have to decide whether to port your current mortgage or remortgage completely. This guide outlines the process of porting a mortgage, remortgaging, selling your current home, and offers some helpful moving advice.
Selling your home
One of the most important aspects of moving house is how you deal with your current home. You may have a few options, such as selling up and renting out, but you should settle on a plan before finding your next home. Here is a list of things to do to prepare to sell your home:
Make sure your finances are in order
This includes having a clear understanding of your mortgage, any outstanding debts, and your income. It’s also always helpful to have a clear budget in place, and a way of tracking your incomings and outgoings.
Get your home ready to sell
This includes decluttering, cleaning, and making any necessary repairs. You may also want to consider hiring a professional photographer to take photos of your home as this could entice more viewings.
Find a good real estate agent
A good real estate agent can be invaluable when selling your home. They can help you to price your home competitively, market your home to potential buyers, and negotiate a successful sale. Having a go-between can alleviate some of the stress associated with selling your home.
Be patient
Selling your home can take time, so it is important to be patient. Do not get discouraged if your home does not sell right away. Continue to market your home and work with your real estate agent to find the right buyer. Remember, you can always change tactics and try something new.
Remortgaging
You may well have heard of remortgaging but never fully understood what it means. In layman's terms, remortgaging is when you look to move from one mortgage deal to another without selling your home, either sticking with the same lender or moving to a new one.
A mortgage is likely to be your largest financial commitment, but you don’t necessarily have to stay on the same mortgage as the one you initially took out, as your personal circumstances may change over the years - giving you a reason to remortgage.
Just like you did when you took out your first mortgage, it's crucial to assess your finances on a regular basis and explore all of your options to ensure you're getting a mortgage that works for you at the time.
Porting your mortgage
Porting your mortgage means you may be able to move your current mortgage to a new house. Porting is a potentially flexible option, but there are no assurances that your lender would allow you to do so.
It is important to realise that the portable deal is not the loan. You will have to apply again. Your eligibility for the agreement will be affected by the loan-to-value (LTV) of your new house, any changes in lending requirements, and any changes in your personal circumstances since you initially took out your mortgage.
Your financial status and household income will still be scrutinised, and if your circumstances have changed and you no longer fit the mortgage affordability, your lender may decline your application. If your circumstances have changed since getting your first deal and are unsure if you’d qualify for another application - read our article on mortgage affordability assessments.
Important information
You may have to pay an early repayment charge to your existing lender if you remortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
Making the move
Once you’ve sorted everything out with your old house and your new one, it’s time to pack up and start planning the move. Here’s a short list of tasks you should do to ensure a seamless transition:
Start your preparations early to avoid last-minute stress
Create a timeline and set a budget to help you stay organised. Make a checklist of tasks for before and after the move, ensuring you don't miss any important details.
Decluttering
Take the opportunity to sort through your belongings before packing. Donate or sell items you no longer need. This not only helps you lighten the load but also makes the packing process easier and reduces transportation costs.
Selecting a reliable moving company
Research and hire a reputable moving company well in advance. Look for positive customer reviews and check if they have insurance coverage. A reliable company should ensure a professional and stress-free move, which makes everything a lot easier!
Notifying service providers
Inform utility companies, banks, schools, and other service providers about your change of address. This will help ensure a smooth transition without any disruptions to important services. Consider using Royal Mail's redirection service to avoid missing any vital correspondence.
Strategic packing
Start packing early and organise your home room-by-room. Clearly label each box to make unpacking more convenient and pack heavier items at the bottom and fragile items with extra care. Keep essential items and important documents in a separate, easily accessible box. We also recommend having a box dedicated to items you will need on your first night in your new home.
Informing the council
Notify your local council about your move. This will allow them to update your council tax details accordingly, preventing any issues with billing or paperwork.
Address updates
Update your address with relevant authorities, including your driving licence, electoral roll, and insurance providers. Additionally, inform friends and family about your new address to ensure they can reach you easily.
Preparing for moving day
Keep important contact numbers handy in case you need assistance or have any last-minute queries. If you have pets or children, try and plan for their care to minimise disruption during the move.
Documenting property condition
Before leaving your previous property, take photos to document its condition. These photos can be helpful for any future claims or disputes that may arise. Take photos of your new property as well before you put boxes and furniture in the rooms.
Our advisers
If you’re going through the process of remortgaging or porting your mortgage, and you feel you could use some assistance, contact us and get the help of one of our advisers today! Additionally, you could check out one of our articles on remortgaging here.
Important information
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
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