Homeowners

Independent, impartial, fee free mortgage broker for Bristol and Bath.

Moving home? Check out our simple guide to mortgages for your new home. Find the latest mortgage rates, learn about the application process, and understand the costs involved. Whether you’re a first-time buyer or a seasoned mover, our guide is here to help you figure out the right mortgage for your new place. Compare rates, get the basics of the mortgage journey, and make informed decisions for this exciting step in your life.

Moving house mortgage advice

Moving to a new home is an exciting event to look forward to, but the task of arranging a mortgage can be a source of stress. Whether you’re downsizing, upsizing, or fulfilling your dream home aspirations, securing the right mortgage is crucial. AB Mortgage, an independent broker in Bristol & Bath, is committed to simplifying the process for you.
When moving from a home where you already have an existing mortgage, you usually pick between getting a new mortgage or transferring your current mortgage to your new property.

Should you take out a new mortgage or take your existing mortgage with you to your new home?

Transferring current mortgage.

When you transfer your mortgage to a new house, it’s referred to as “porting.” Porting involves moving your existing mortgage from your current property to your new one.

Technically, the process entails repaying your existing mortgage upon the sale of your current property, followed by taking out a new version of the same mortgage product for the new property. This occurs at completion.

If you possess a highly competitive mortgage rate that you wish to retain or want to avoid early repayment charges (ERCs), moving home with your existing mortgage might be appealing. To determine if your mortgage is portable, consult your broker. Even if your mortgage is portable, taking it with you when moving homes may still require reapplication with the lender. Qualification depends on factors like changes in your circumstances, criteria adjustments, or your current lender deeming the property you’re purchasing unsuitable as security.

Acquiring a new mortgage.

It’s more common to switch mortgage products when you purchase a new house than to move your existing mortgage to the new property. Sometimes, people switch providers because their lender won’t let them port their current mortgage, but usually, people switch simply because there are better deals available.
When you switch to a new product, your existing mortgage is repaid upon the sale of your current property, and a new mortgage is taken out on the new property. This also happens at completion.

Moving home- Our Step-by-Step guide:

Contact your trusted mortgage adviser.

Upon contacting A.B Mortgage, you can schedule a phone appointment, a video call, or an in-person meeting with us – whichever option suits you best. During this conversation, we will ask you some questions, conduct a thorough search for mortgage deals tailored to your circumstances and future requirements, and then arrange a follow-up session to present our findings.

Decision in Principle

Once you’re happy with our recommendation, we’ll move forward to secure your DIP (Decision in Principle). Essentially, this is a commitment from the lender, indicating their willingness to lend you money, provided the information you’ve provided is accurate and subject to a property valuation.

Offer on Property

After securing a DIP (Decision in Principle), you’re ready to make an offer on a property, and sellers appreciate having a DIP in hand. It signals that you can comfortably afford the purchase and, by taking this step, it shows your genuine commitment to buying.

Pre-Application and Submission

After your offer is accepted, we’ll provide you with details outlining the necessary documents to submit to the lender. A dedicated client relationship manager will be assigned to you, handling the verification and submission of certified copies of your documents. Throughout the process, they will maintain communication with both you and the lender. Following this, your adviser will proceed to submit the fully packaged mortgage application.

Lender Underwriting and Valuation

The lender will undergo the underwriting process for your application, ensuring the accuracy of the information you provided and independently reviewing all your documents. They will also arrange a valuation of the property you intend to purchase, ensuring there are no significant issues with it for their purposes.

Mortgage Offer

Once the lender is satisfied with all the information and documents provided, they will issue a mortgage offer. They will also provide us with a copy.

Conveyancing

Once you’ve accepted your mortgage offer, you’ll move on to the legal phase known as conveyancing. During this process, solicitors or conveyancers will prepare contracts and manage the formal legal aspects of property acquisition. Additionally, it’s essential to arrange buildings insurance at this stage, ensuring it is effective from the point of exchange.

Exchange and Completion

Once everything is in place, your conveyancer will exchange contracts with the seller’s conveyancer. If your deposit is coming from savings or a gift, then it’s at this point that you put the deposit down and are legally bound to the property. You’ll lose your deposit if you pull out after the exchange. If your deposit is coming from the sale of your current property, then it’s transferred at completion as part of the whole purchase. The purchase completes when the money is transferred on an agreed-upon date. This is when you get the keys to your new home.

Remortgage

Discover excellent possibilities with A.B. Mortgage’s Remortgages Service. As your current rate approaches its end, consider the strategic choice of remortgaging for improved terms and diverse lender options. Trust our seasoned brokers with access to a wide network of lenders. Bolster eligibility with a positive credit history and a substantial deposit. A.B. Mortgage tailors solutions to your specific needs, ensuring a seamless and rewarding financial journey.

What is Remortgaging?

Remortgaging, the process of changing your mortgage on your existing property to a new one, involves switching from one mortgage lender to another. This new mortgage replaces the previous one on the property. Many homeowners opt for remortgaging as their existing rate approaches its end, seeking better mortgage deals or planning to borrow more against a property.
Remortgaging may be suitable if:

The introductory deal on your current mortgage is due to end soon, and you’d like to avoid being transferred onto your lender’s SVR (standard variable rate).

You want to consolidate debts.

You need money for home improvements.

You have a significant upcoming expense, such as a wedding or school fees, or you want to help your children with a deposit, etc.

Your property has increased in value, and you want to benefit from a lower rate by going onto a lower LTV (loan-to-value) product.

Your existing lender’s product transfer rate is high, and remortgaging would be more cost-effective.

Remortgage Process (step-by-step)

Experience a streamlined mortgage journey with A.B. Mortgage’s 6-step process. From the initial consultation to completion, our expert advisers provide tailored guidance for optimal financial outcomes.

Initial Consultation:

Contact A.B. Mortgage for a consultation with an adviser who will assess your needs and recommend suitable mortgage options.

Decision in Principle (DIP):

Upon agreement, your adviser will secure a Decision in Principle (DIP) from the lender, indicating a commitment to providing the loan based on accurate information and a property valuation.

Pre-Application and Submission:

Guided by us, gather necessary documents for the mortgage application. A client relationship manager will assist in document review before your adviser submits the complete application.

Lender Underwriting and Valuation:

The lender conducts underwriting to verify your application’s information and initiates a property valuation to ensure it aligns with the loan.

Mortgage Offer:

After successful underwriting and valuation, the lender issues a mortgage offer, accepting your application and sending a copy to us.

Conveyancing and Completion:

Undergo conveyancing, facilitated by a solicitor, who manages the legal paperwork for the transfer between lenders. Upon completion, your solicitor sets a date to draw down new funds, clearing the outstanding balance with your current lender, and any excess funds are returned to you.