Mortgages and selling your house - advice on porting a mortgage and more
Whether you are upsizing or downsizing, when you move house one of the main aspects to consider is your mortgage. This will help you determine your budget for your new home.
In order to find the right mortgage solution for you when you sell, it’s best to seek independent mortgage advice. ESPC Mortgages is a team of independent mortgage advisers based in Edinburgh, with a wealth of expertise in the mortgage market and we’re well-placed to help you navigate the buying and selling process – check out our fantastic Google reviews to see for yourself.
We can help you work out whether you can port your mortgage, what your early repayment charges will be and which mortgage lender is most suitable for your new property. You can contact us on firstname.lastname@example.org, 0131 253 3920 or using the form below.
Below we answer commonly asked questions on mortgage for home movers and property sellers, including how porting works and the costs of selling a house. Use the quick links below to navigate to each question.
Many people wonder what happens to their mortgage when they sell and whether they can sell before the end of their fixed rate mortgage period.
When your home is sold, the sale proceeds will be used to pay off your mortgage including any early repayment charges and account closing fees. Any funds left over, usually referred to as the equity, are yours to keep or use toward the deposit for your onward purchase.
However, some people also choose to take their mortgage to their new property, which bring us to…
Yes, if you have a mortgage product with early repayment charges, it is usually possible to transfer the mortgage on to a new property. This is called porting and would be subject to your existing lender’s criteria, terms and conditions.
How does porting a mortgage work?
Porting a mortgage essentially means that you are transferring your mortgage to your new property, which can help you avoid any early repayment charges. Porting is only typically used when you are tied into a preferential rate mortgage, usually a fixed rate product but some tracker mortgages have lock-in periods also.
If you require additional funds for your new property, you will need to negotiate with your current lender on the terms of this borrowing. This will generally involve taking on a top-up product for the balance required to run alongside your existing loan amount.
This is normally done under a separate account but sometimes your lender will allow you to align the term of your existing mortgage with your new one to keep things consistent.
Is porting your mortgage a good idea?
Porting a mortgage may allow you to keep your existing mortgage terms, avoid early repayment penalties and sometimes there can be a quicker assessment due to your existing relationship with your mortgage lender.
However, porting a mortgage does limit you to using products from your existing lender. You may also not be able to consolidate all your borrowing under one mortgage for a period of time – this might mean more arrangement fees in the future to get preferential rates for both accounts until they are aligned.
Essentially, while porting your mortgage may be an option, it can sometimes be a difficult process and may not always make financial sense. As each lender has different policies with regards to porting, it is best to get advice from an independent mortgage adviser to work out if it is the right option for you.
Find out more information about porting a mortgage.
If you are taking on a new mortgage or porting your existing mortgage when purchasing a new home, you will still require an element of deposit or equity as required by your mortgage lender. This sum can come from the sale of your existing property, savings or a combination of both.
Your mortgage adviser and solicitor can help advise you on deposit payments and when these are required.
There are lots of different costs associated with selling and moving home, including, but not limited to, property marketing costs, solicitor fees and removals. You may also need to pay Land and Building Transaction Tax (LBTT) on your next property, depending on the purchase price.
In terms of mortgages, you should ensure to factor in any early repayment charges and any arrangement fees for a new lower preferential rate if applicable when you are budgeting for your house move. The independent mortgage advisers at ESPC mortgages can help you work out how much these will be if you do need to pay any.
Your independent mortgage adviser and solicitor are crucial in the process of selling and moving home. Once you have decided to move, you should reach out to both as early as possible.
Your independent mortgage adviser can help you work out the most suitable mortgage options for you, which will help determine your budget for moving. At ESPC Mortgages, we have helped many clients navigate the moving process from start to finish and are happy to help with any questions. Get in touch with us today.
You also need a solicitor to sell and buy a home in Scotland and they can offer expert advice on the local market and the legal process of buying and selling a house. All ESPC agents are solicitor estate agents, so they can help with marketing a property as well as advising you on the legal process.
Find an ESPC agent today. You can also arrange a free property valuation with an ESPC agent to find out how much your house is worth and get started on the selling process.
Choosing whether to buy before selling a house or selling before buying will depend on your personal circumstances and the current market conditions as there are advantages and disadvantages to both.
If you buy subject to sale, you can be confident you have found the right home for you. However, some homeowners may prefer to sell to someone who isn’t relying on selling their house, which could make your property search more difficult.
If you sell before you buy, you may find it easier to get your offer on another property accepted but might also struggle to find the right new property for you once you have sold.
It’s also worth noting that if you sell before you buy and choose to rent for a period of time most lenders will have a grace period of at least three months. So, if you go back to the same lender within this timeframe then they will refund the early repayment charge you incurred when you sold.
It’s advisable to seek advice from your solicitor and mortgage adviser on whether buying before selling or selling before buying is the right option for you.
How long it takes to sell a home will depend on many factors, including your property type and local market conditions. Your solicitor will also need to co-ordinate dates of entry that work for the different parties involved.
In terms of the mortgage process, ESPC Mortgages work hard to get the fastest turnaround times for our clients as possible, to ensure this part of the process goes as smoothly as possible. Contact us today to find out how we can help you.
Seeking independent mortgage advice will help you work out the right mortgage option when you are moving home. An independent mortgage adviser can look at the whole-of-the-market to provide you with unbiased advice as to which lender and deal will work best for you.
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The initial consultation with an ESPC Mortgages adviser is free and without obligation. Thereafter, ESPC Mortgages charges for mortgage advice are usually £350 (£295 for first-time buyers). YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOANS SECURED AGAINST IT.
ESPC (UK) Ltd is an Appointed Representative of Lyncombe Consultants Ltd which is authorised and regulated by the Financial Conduct Authority.