Can I transfer my mortgage to another property?
Yes, you may be able to transfer your mortgage to another property. This is known as porting. For full details on porting, please visit our Porting Guide.
What if I need a larger mortgage?
If you move home, a new mortgage application will need to be submitted. As long as your mortgage affordability allows, you can apply for a larger mortgage at that time. When moving home, your existing mortgage is redeemed and a new mortgage is secured to the onward purchase.
What happens if I’m in negative equity and want to move house?
If you are in negative equity, you will owe more money to your existing mortgage lender than the value of your property. This means that, following the sale, you will need to repay any outstanding loan balance from your own means. This will reduce the savings that you may have set aside for a deposit on the onward purchase.
How much will it cost to move?
Moving costs vary significantly from purchase to purchase. Just a few of these variables include legal fees, stamp duty land tax, estate agent fees (associated with your sale), valuation and broker fees. These costs can significantly differ with each transaction. For example, some mortgage brokers, like Boon Brokers, do not charge broker fees at any stage of the process.
How much can I borrow?
Your maximum borrowing capacity for a mortgage will depend on numerous factors. The most significant factors are typically your income, financial commitments and overall loan term. For a more detailed explanation of how lenders determine your maximum loan sum, view our guide on the matter.
How much stamp duty will I have to pay?
The Stamp Duty Land Tax (SDLT) payable on a property purchase will depend on the purchase price and the type of purchase. For example, if you are a first-time buyer, you will have stamp duty relief up to £425,000.00. Whereas, if you are buying an additional property/buy to let, you will pay an enhanced rate of SDLT. View our Stamp Duty guide for more information.
How does the value of the property affect the mortgage?
The value of your property has a significant impact on the interest rate payable. The most important determinant of a mortgage interest rate is the Loan-to-Value (LTV) of the property. For example, if you have a mortgage for £90,000.00 on a property valued at £100,000.00, you will have a 90% LTV mortgage. As your LTV falls, meaning that your equity in the property grows, you will have access to lower interest rates. View our article on Loan to Value ratios for further information.
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