What Happens To My Mortgage When I Move House?

When you are moving your house, you may be concerned about what to do with your current mortgage.

Well, yes, there is a solution for that too.

It is advisable to discuss your plan with your mortgage broker and they will help you with the right

options that fall within your financial options. Most of the mortgages are portable, which means that

you can shift the mortgage with your new property.

If your situation has changed, and you are finding it hard to meet the mortgage, then your mortgage

application may be refused. If you decide to port your mortgage, you may need to pay back the

mortgage payments with higher interest rates. Remortgaging and resorting to a different lender may be

a good option in this case.

If you are clear with all your mortgage payments within the term and have no dues then moving a house

is a much easier process. While taking onto the new mortgage term, you can utilize the money you got

from selling your previous property to cover the mortgages of the new house or use it as an investment.

In other cases, if you are still on with the mortgage payments, you will still need to pay back the

remaining money you have borrowed. If the price of your home is less than the mortgage you own,

then you need to pay the difference. On the other side, if the price of the property is more than the

mortgage, you can keep the profit.

In some cases, the borrowers can port their mortgages to a different home keeping the same interest

rate. In the case of porting the mortgage, both parties are required to sign the mortgage, this helps in

maintaining the relationship for a long term. If you do not want to port the mortgage and you are still

under the term of the mortgage, you will need to break the contract with your current lender and pay

the penalty. Most of the individuals choose this option if they aren’t happy with the current mortgage

terms, interest rates, and conditions.

While remortgaging the property, you will have to pay a certain fee. Be mindful of calculating the money

you will be left with after complying with the remortgaging terms. Once you have left your old

mortgaging deal, you will be required to pay the arrangement and valuation fee on your new mortgage.

The lender will rebate your redemption penalties and usually applies the same rate as your earlier

mortgage to the new term for the balance of term left on the rate.

The lender may provide you with the new loan terms either on the same date or after a span of 3-6

months. This involves the period between the sale of the house and purchasing the new one. The lender

will charge the redemption penalty when the old property gets sold and refund them shortly on the new

home.

If you are moving on to an expensive property and you need to increase your mortgage for this, then a

potential compilation with the mortgage rate is applied to the mortgage amount.

By changing the lender and the mortgage terms, and taking on a top up amount on the mortgage debt,

you are likely to incur penalties on both the old and new property simultaneously.

It is true that remortgaging can help you save money on the course of your mortgage; you just need to

look for a better deal than for the lower interests. Moving to a new house is a big decision especially

when you are running on a, mortgage, consulting Mortgage Expert Ireland will help you know options

for your personal situation and help you find the best mortgage payment solution