Are you looking to come home ?
Our Dartford based mortgage advisors are passionate about making sure you get the best available mortgage to help you buy your next home. The right mortgage can save you money, at a time when every penny matters!
Dartford Mortgage Centre will ensure brokers that are ‘whole of market’ which means we search the entire market for every available mortgage to get you the best rates and deals.
Our local mortgage advisers are there to guide you throughout your property ladder. While we focus on the mortgage application, you can focus on the excitement of finding your next home.
What Happens With My Existing Mortgage?
At Dartford Mortgage Centre we have helped many people move home. On this page we will explain the two ways in which you can buy a new house and whether it’s best to get a new mortgage or if it’s better to take your existing mortgage with you. The chances that your mortgage term and the date you are planning to move home will coincide are very slim, therefore you will have two options open to you.
Can I Take My Existing Mortgage To My New Home?
This is considered the most efficient and most cost-effective way of buying your new home is to use your existing mortgage. This process of taking your existing mortgage to a new property is referred to as porting.
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If you are buying a home that is more expensive than your existing one, you can use your existing mortgage and get a top-up mortgage from your current lender for the extra amount. Although this method of buying a new home is slightly more complicated than getting a new mortgage but it is usually the most cost-effective way as you will NOT be charged any Early Redemption Charges (ERC’s) from your lender. ERC can be as high as 5% of your mortgage, so on a £100,000 mortgage the amount you would have to pay to get out of your existing deal could equate to £5,000. At Dartford Mortgage Centre we will hold your hands throughout the process. We will talk to your existing lender and arrange to port your mortgage. We will arrange the top-up amount you need and complete all the necessary paperwork.
Arranging A New Mortgage For Your New Home GET AN AIP
It makes financial sense to take your existing mortgage with you (port) as we described above however occasionally this option may not be open to you.
One main reason to consider a new mortgage lender is if your existing bank or building society are not willing to lend you the amount you require to enable you to buy a new home. This is usually because each lender uses specific mortgage affordability calculator to decide how much you can borrow. The amount they will lend will differ from lender to lender as they all have different criteria.
Is It Best To Port My Existing Mortgage Or To Get A New Mortgage?
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At Dartford Mortgage Centre we are here to help you and provide clarity on the best option for you. We will be able to see if you can borrow what you require for your home move from your existing lender. If not, we will research the whole mortgage market to get you the best rates and deals.
Whether you are porting your existing mortgage or needing a new mortgage, at Dartford Mortgage Centre we carry out all the paperwork to the lender on your behalf. We will also liaise with your estate agent and solicitors and provide you with weekly updates.
How Do I Find The Right Estate Agent For Me?
Think if you know anyone who has bought or sold, let or rented a property in the last year or so. Speak to them and ask whether they would recommend the agent that they used and the things they learnt about the process and how they might choose an agent in the future.
Make sure you meet with lots of agents then create a shortlist of 2 or 3. It is recommended you invite the shortlisted agents around for a second meeting before you chose the agent that you click with the most. Property sales or purchase is arguably the biggest transaction for most people, so choosing the right estate agent could contribute to the success or failure of the sales process.
Don’t forget you are not limited to traditional, local and physical based estate agents, there are more online estate agents you should consider in the selection process.
How Much Does It Cost To Use An Estate Agent?
In general, most traditional location-based estate agents will normally charge you between 1% and 2% plus VAT of the price at which you sell your home, some offer a ‘no sale no fee’ package.
However, there are more estate agents doing a fixed-fee charge Make sure you ask about this carefully with the agents before taking them on.
Check to see what extras they charge for too and factor that in on your decision. If you are considering several agents, tell them what you have been offered from the other agents and ask them to match the offer.
Do I Have To Choose Just One Agent?
Short answer, no. You might get more market exposure with more than one, but if one agent is advertising on at least one of the major property portals, then sometimes there can seem little point. If you are using more than one agent, do make sure you read the small print for any charges incurred if you sell your property through another agent.
When it comes to getting an offer on your property, remember that is YOUR property and YOUR decision whether to accept an offer. Your agent will only make money by selling your property, so never feel pressurized to accept an offer you are not happy with.
What Are The Different Types Of mortgages?
You will have a variation of choices to consider for the types of mortgages you want to secure.
To explain the different types of mortgages, it is often simpler to categorise them based on the stage of the applicant and the purpose of the mortgage lending. Most common types of mortgages are:
[ 01 ] Fixed-Rate Mortgage
A fixed-rate mortgage means your repayments will continue to be the same for a certain time period. There are currently between 3-10-years fixed rates options.
These rates will be fixed regardless of what interest rates are doing through the mortgage market which means your interest and repayments will remain stable.
However, if rates change you will lose out on the benefit of a lower rate.
[ 02 ] Variable-Rate Mortgage
The rate paid on a variable-rate mortgage can increase or decrease in line with the Bank of England base rate.
If you choose a variable-rate mortgage, then the interest rate you pay will move up and down depending on the market. Your interest and repayments are then fully dependent on the market at the present time.
[ 03 ] Tracker Mortgage
With a tracker mortgage, the rate of interest is set above the variable rate. It is tracking the Bank of England’s base rate. If this rate fluctuates, so too will your mortgage. Currently, the Bank of England interest rate is 0.10%, which is the lowest ever base rate historically.
Different Types Of Mortgage Repayments
[ 01 ] Repayment Mortgage
A repayment mortgage is where you pay both the interest and part of the capital off every month. At the end of the mortgage term, you should be at a point where you have paid off the total amount originally borrowed plus the interest, and therefore you own your home, mortgage free.
[ 02 ] Interest-Only Mortgage
Interest-only mortgages mean you only pay the interest on the mortgage loan. This, however, means you will pay nothing off the capital (the amount you borrowed). The advantage here is that your monthly interest payments will often be lower than any fixed rate repayments.
These types of mortgages are becoming rare for the residential property. This is because as you are only paying off the interest, you will be left with a debt that could potentially stay with you without the means to repay it, especially as people get older or get into retirement and the earning potential is quite reduced.
However, if you are in retirement, you may be able to qualify for Retirement Interest-Only Mortgage, which is a special type of mortgage tailored to the older generation who may be categorised as ‘mortgage prisoners’ due to their inability to move away from previous interest-only mortgage and cannot afford to pay off the outstanding capital.
This means that these mortgages are becoming much harder to come by as lenders and regulators are worried about homeowners being left with a huge debt and no way of reducing it. If you do get an interest-only mortgage, you will have to have a separate repayment plan. This plan will decide how you repay the original loan (capital) at the end of the mortgage term. Most buy-to-let mortgages are usually on an interest-only basis. Combination Of Repayment & Interest-Only Mortgages
There are mortgages out there which will allow you to split your mortgage repayments between both repayment and interest-only mortgage.
What Is Loan To Value?
Loan to value (LTV) is the ratio of your mortgage borrowing vs how much your property is worth. A percentage of your home is mortgaged and therefore technically owned by the bank. The other is percentage is owned by yourself which is your equity in the property.
Using a real case example: if you have a £80,000 mortgage on a property that’s valued at £100,000, you have a loan-to-value of 80% – therefore you have £20,000 as equity. The loan-to-value will partly control what mortgage products you have available to you when you come to buy or sell your home, remortgage or release equity. Having a lower loan to value ratio will mean you have a greater number of competitive rates available to you and therefore more flexibility.
Home Mover Mortgage FAQ's
What Information Will I Need To Get A Mortgage?
The information you need varies depending on which bank or building society you are getting a mortgage from however here is a list of information that will always be required from you as a starting point: –
- Driving licence
- Proof of name & address
- Proof of income
- Proof of deposit Latest 3 months bank statements
Read more on Are You Mortgage Ready?
How Do We Find You The Best Mortgage?
Applying for a mortgage can be a complex and often confusing aspect of your dream home journey, however, at Dartford Mortgage Centre, we work with trusted mortgage expert who will give honest straight-forward and jargon-free mortgage advice.
We take care of all the mortgage administration and liaise with estate agents, mortgage lenders and solicitors to make sure the process is as smooth and hassle free for you as possible.
Our mortgage brokers will find the best deal for YOU!
Being a local based and independent business, we provide a service based best in class standards. We offer appointments at a time and place most convenient for you – call us today to book a daytime or evening appointment at either our office or your home (physically or we can connect with you virtually in the comfort of your own home).
How Do I Work Out What Mortgage I can Afford?
Mortgage Affordability is one of the main criteria that you will be assessed on before you can get a mortgage. It is important you know how much you can afford to borrow. It is not advisable to stretch yourself if you are likely to struggle to keep up with the mortgage repayments.
We will go over your options in a clear and understandable way and help you feel confident in what is achievable for your situation. We will work through a mortgage affordability calculator to obtain the level of affordable lending that you can get.
All mortgage lenders will want to see proof of your income, certain expenditure and any debts you may have. They will also ask for information about other household bills, child maintenance, and personal expenses.
Mortgage lenders require this information in order to prove that you are able to keep up with the mortgage repayments if interest rates rise.
You will also need to consider your costs of owning a home such as household bills, council tax, insurances and flat costs (if applicable).
Lenders may refuse to offer you a mortgage if they don’t think you’ll be able to afford it or if your credit score isn’t high enough. We highly recommend that you speak to our qualified mortgage advisers to make sure you a mortgage ready!
How Can I make Sure I Have A Good Credit Rating?
When it comes to getting a mortgage, it’s best to have a clean and strong credit history but we understand that this isn’t always the case. Most mortgage lenders look back at your past 6 years credit history therefore you want to make your credit file is well taken after. You can achieve this by ensuring/having/areas to focus on/focusing on these areas:
[ 01 ] No Defaults and late payments
[ 02 ] No to Pay Day Loans
[ 03 ] No to Gambling
[ 04 ] Your Overall Credit Score & Debt
How Much Do I Pay For Mortgage Advice?
Mortgage advice will usually vary between £495 – £2,000 depending on the complexity of the mortgage application and any adverse mortgage consideration. Typically, our mortgage advice and readiness plan will be £495, however, we provide free mortgage assessment on our initial discovery call which will help you clarify your likelihood to secure a mortgage.
Only when we are satisfied that you are mortgage ready and that we can help you, then we discuss the option of mortgage fees. This gives you enough confidence to know if we can work together to achieve your dream home purchase or remortgage.
For complete transparency, mortgage advisers are paid a commission directly by lenders for overseeing the clients mortgage application process to fulfilment.
The relevant total fees charges will be discussed and documented in the Mortgage Illustration document.
Do I Need To Get A New Life Insurance?
It is always advisable that once you have someone who will financially suffer if you were to die or be diagnosed with a critical illness then it should be in place. If you already have a policy in place, congrats but as there is likely to be some changes in the new mortgage, it is better to review your protection plan for an update as required.
However, if you have not had a family & lifestyle protection before, please do not leave things to chance, think about what will happen to you or your family in the event of sickness, accident or death. Mortgage and life protection is very important!
Make the right choice now, remember the hospital and gravesides are full of surprises.
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Book an appointment and let us know what the best time is for us to call you.
We will get one of our mortgage advisors to get in touch to talk through your situation and available options.