“Gregor took the stress out of a potentially confusing situation. He was pleasant yet professional, accommodating and instilled confidence.”
Whether looking for a bigger home or a smaller one; because of marriage, a change in employment, or for any other reason – most of us will move home at some point.
It’s often quoted as one of life’s most stressful experiences … not least because you’ll have to arrange a new mortgage.
When you sell your Edinburgh home, the proceeds will be used to repay your existing mortgage. It’s important to understand what fees your lender will charge for doing so.
At the very least, a mortgage repayment administration fee will usually apply – the amount of the fee depends on the conditions when you took your mortgage out.
You may also be charged a fee for handling, despatching or discharging the property’s Title Deeds.
Most significantly, if you are within the tie-in period of a mortgage product (for example a fixed or capped rate) you may have to pay an Early Repayment Charge (ERC).
This is normally a percentage of the mortgage amount, and will often be in the order of several hundred pounds.
If your mortgage deal does include an Early Repayment Charge, you should speak to your lender to understand the implications of repaying your mortgage when you move home.
It’s often possible to transfer or “port” the mortgage product to a new mortgage with the same lender.
But this may be conditional on simultaneous sale and completion – in other words, your old mortgage is repaid and the new one starts on the same day.
If there is a gap between buying the new property and selling your current home, some lenders will charge the Early Repayment Charge when your existing mortgage is repaid.
However they may refund it if you take out a new mortgage with them within a certain amount of time (typically 3 – 6 months maximum).
Early Repayment Charges not withstanding, moving home is the perfect opportunity to review your mortgage arrangements.
While there may be an understandable desire to stay with your current lender, the sheer range of other lenders and mortgages on the market means there could be some fantastic mortgage deals available if you shop around.
Make sure you budget realistically as it’s easy to underestimate the costs involved in moving home.
In addition to the mortgage repayment fees mentioned above, your expenditure will typically include estate agent's fees, stamp duty, mortgage arrangement fees and conveyancing/solicitor fees.
Above all, it pays to educate yourself and make informed mortgage choices. Repayment or interest-only? Fixed rate or variable? Tracker, discount or capped?
Or perhaps a more specialised form of lending, like an offset or current account mortgage, might meet your needs?
The mortgage market can be confusing, but an unbiased, whole-market Edinburgh mortgage advisor like Gregor McMeechan can help you understand
the different types of deals and, more importantly, the choices that are right for you.
He'll help you work out whether moving your mortgage to a new lender is right for your particular circumstances and, if so, he’ll take you through the application process from start to finish.
At a minimum you’ll save yourself a lot of time and hassle, and possibly a whole lot more.
So talk to Gregor today and find out what your mortgage options are.
Contact Gregor McMeechan today.
Call 0131 510 3624 and get access to thousands of buy-to-let mortgage rates.
Or just complete the request a call back form to receive a call back from Gregor at a time suitable for you.
We look forward to hearing from you.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form :(
Your home may be repossessed if you do not keep up repayments on your mortgage.
Our fee for Mortgage Advice is between 0% and 1% of the loan amount, payable on application. Typically this will be £425.