Can I move my mortgage to a new house?

Posted on July 31st, 2016

If you have an existing mortgage and are looking to move to a new property you have a couple of options. You can remortgage to a new lender or you can move your mortgage from your current property to the property you wish to buy. This is called porting.

Most lenders allow mortgages to be transferred to a new property these days but there are a couple of things to bear in mind. Firstly, your lender will need to check your eligibly and affordability and also the property’s suitability, just as if you were applying for a new mortgage. This may mean that you will need to have a valuation carried out on the new property at your cost. Secondly, you may have to pay a fee to transfer the mortgage. This could be a couple hundred pounds depending on the lender. It is also worth pointing out that you may need to pay additional fees if you need to borrow more as part of your move and any additional borrowing could be at a different rate of interest and terms depending on product availability at the time.

Porting is a relatively fuss free way of moving house however it could mean you miss out on the chance to get a better mortgage deal. It is worth looking around at the remortgage options available to you before deciding whether or not you’d like to transfer your current product. However, this could be the cheaper option if an Early Repayment Charge is applicable.

If you’re out of your original mortgage deal (for example if you had a two-year fixed rate and those two years have now expired, leaving you on your lender’s Standard Variable Rate)  you won’t have to pay any early repayment charges. However you could still face an exit fee of a few hundred pounds. Whether or not it’s worth doing this depends on how good a deal you could get by switching.

It’s worth bearing in mind however that in the last few years we’ve seen lenders tighten their criteria, particularly as a result of new regulation following the Mortgage Market Review and legislation from the EU. This means you may face tougher eligibility requirements when applying for a mortgage with a new lender. What’s more, you may have to pay an arrangement fee to the new lender.

If you’re thinking of moving home and you’re unsure of the most appropriate option for you and your mortgage call in and see us today at We Know Mortgages Ltd. Our expert team can ensure you find the most cost efficient and most appropriate option.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

Seven day remortgage a possibility

Posted on July 22nd, 2016

Homeowners could be able to remortgage their home within just a week, under new plans announced in the Queen’s Speech. At the moment it can take anywhere between six weeks and three months to switch mortgage providers, much to the frustration of everyone involved! These new plans, currently being considered by the government, could speed things up significantly.

If you’re currently looking to remortgage, below are our top tips for ensuring you get the most appropriate deal.

Shop around

Loyalty is an admirable quality but in the world of financial services especially it doesn’t always count for much! We’ve all heard stories of the best credit card rates or the cheapest TV and phone contracts being available to new customers only while loyal, existing customers get the rough end of the deal. When remortgaging, it makes sense to see what your lender can offer you before looking for another deal elsewhere but don’t feel like you owe them anything. If your existing mortgage lender can’t offer you what you’re after and there is a more attractive deal elsewhere to meet your needs then it may be appropriate to consider moving lenders.

Be realistic

When you buy your first home you’re filled with a sense of accomplishment – you’ve done it, you’ve bought your very own bricks and mortar and it’s all yours! Then you read your mortgage statement a year or two down the line and realise very little of it actually belongs to you just yet! Be realistic about how much you’ve paid off your mortgage and how much your house is worth when looking to remortgage.

Get your finances in order

Just like you did first time round, when remortgaging it’s essential that your finances are in order and you appear to be managing your money well. Pay off any debts where possible, keep an eye on your credit score and keep your bank statements and wage slips organised.

Get advice

As with any financial commitment it’s important that you receive sound, unbiased advice before making a decision. If you’re looking to remortgage call in and see us at We Know Mortgages Ltd today and find out how we can help you.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

Brexit and the housing market

Posted on July 19th, 2016

Given the state of uncertainty the country currently finds itself it would be a brave (or should that be foolish?) man who would make any predictions right now. Who will be Labour leader, whether the pound will recover, when the next General Election will happen or what the terms of our EU exit will be. As such, to speculate over what the housing market will look like in a year’s time will involve an awful lot of guesswork. But let’s look at some of the things that are unlikely to happen in our opinion, in order to allay any fears.

House prices should fall drastically

We may well see house prices fall a little but fluctuations in this market are common. However, despite the odd scaremonger predicting crashing prices most predictions tend to point to prices being largely unaffected. Indeed, the Council of Mortgage Lenders released a statement soon after the result which said it does not expect house prices to be significantly impacted.

Buyers will not disappear
There will always be people looking to buy a home. While the uncertainty in the run up to the referendum no doubt caused some people to hold off on purchases until the picture was a little clearer those people are not going to decide not to buy a property as a result of Britain’s exit from the EU.

Lenders will still lend

There is an unfounded fear that Brexit will make lenders batten down the hatches and shut up shop but in our opinion this is unlikely to happen. As the Bank of England governor Mark Carney stated, banks are prepared for this and more funding may be available to them.

If you’re looking to buy a home and are concerned about Brexit and how it will impact you, come visit us at We Know Mortgages Ltd. We’ll help you find the most suitable and competitive deal to take that first step on the property ladder.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

What’s an interest only mortgage?

Posted on July 4th, 2016

Interest only mortgages were a hugely popular product, which allowed borrowers to pay the interest on their mortgage each month and not any of the actual debt.

Paying just the interest meant the borrower’s monthly repayments were significantly lower than they would be for a repayment mortgage. Unsurprisingly therefore, interest only mortgages were popular with borrowers struggling with affordability.

The reason for the past tense is that once the credit crunch hit most of these products disappeared from market as they were deemed too much of a risk. Indeed, there are quite a few borrowers with interest only mortgages today who are reaching the end of their mortgage term and facing a problem – they have no means of paying off their debt.

Interest only mortgages rose in popularity at a time when house prices were rising significantly. As such many homeowners thought they could simply pay the interest over a 25 or 30 year term of the mortgage and prices would have risen high enough to pay off the mortgage debt. Of course this was a huge gamble to take. Repayment vehicles such as Endowment policies, Isas etc… hoping for returns could not usually be relied upon to pay off the outstanding debt which meant that people were left with outstanding debt that they did not anticipate. Also house prices can be volatile and many borrowers are now stuck with a chunk of debt and no way of repaying it.
There are alternative – and much safer ways – of keeping your monthly repayments low. To begin with, put down as a big a deposit as possible. The bigger the deposit the lower your monthly repayments will be so it really is worth taking that extra time to save before rushing into buying.

And, wherever possible, make overpayments (if your mortgage lender allows this). If you get a big bonus at work or come into a bit of cash, paying it off your mortgage can reduce how much you owe and as a result how much you pay each month (depending on your agreement with your lender).

To find out more about how to make your mortgage repayments manageable call in to We Know Mortgages Ltd today.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.