Home Mover Mortgages or Moving Home Mortgages Explained
What is a Home Mover or Moving Home Mortgage?
A home mover mortgage (sometimes called a moving home mortgage) is the name given to the type of mortgage that people use if they are selling a property in order to buy a new home. As opposed to a first time buyer mortgage which is the type of mortgage that people use if they do not already have a mortgage.
It can sometimes be called a second mortgage but it should not be confused with a second charge mortgage as that is a second charge mortgage attached to your exisiting property and not a mortgage to buy a new home.
Why Would You Need a Home Mover Mortgage?
If you are selling your home to buy a new home then you might need a moving home mortgage. For instance you could be selling your Bicester town house to move to Oxford, the proceeds of the sale would pay off your existing mortgage and the remainder (your equity in the property) could be used as a deposit on the new home. You would then line up the home mover mortgage to buy the new house, paying the difference between the purchase price and your deposit with the home loan.
What’s the Difference Between a Moving Home Mortgage and a First Time Buyer Mortgage?
Many lenders have specific first time buyer mortgage products that may include a variety of incentives such as no valuation fee or legal costs or maybe even cash back upon completion of the mortgage. But if you’re not a first time buyer then there are still plenty of great deals out there with very competitive rates and similar incentives so don’t panic, being a second time buyer doesn’t mean you are going to have to take a less exciting mortgage.
How Do You Get a Moving Home Mortgage?
It is possible to get a pretty good idea of what is available to you from a price comparison website and maybe your current lender has some incentives for existing customers. But not all lenders advertise on the mortgage comparison websites and even with their incentives your bank may not be offering the best mortgage deals so it is always a good idea to speak to an independent, whole of market mortgage broker to get an accurate picture of what is the best home mover mortgage for you.
When Should You Start Arranging Your Home Mover Mortgage?
If you need a mortgage in order to buy a new home then it is a good idea to get a decision in principle from a lender before you even put your home on the market. You may want to buy that mansion in OX1 but if you can only borrow enough for a studio flat then you will be wasting your time looking at properties you can’t afford. Alternatively, you may find that you can borrow more than you were expecting too.
A decision in principle is written confirmation from a bank that, based on the information provided, they would be happy to lend and how much. This should then give you the confidence to put your property on the market and start looking for a new home to buy.
If you would like any help with a mortgage or anything else to do with mortgages or property, then get in touch and I will gladly give you some free advice. And head over to my about me page to learn a bit more about me and how I can help.