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Lets talk about Home Mover Mortgages

Buying a new home is an exciting but also a complex process. There are many different types of mortgages available to home movers in the UK, and it can be challenging to know which one is right for you. In this blog, we'll take a closer look at home mover mortgages, what they are, and how they differ from other types of mortgages.

What is a Home Mover Mortgage? 

A home mover mortgage is a type of loan specifically designed for people who are looking to purchase a new property, but already own a home. This is different from a first-time buyer mortgage, which is aimed at people who are looking to purchase their first property. Home mover mortgages are available from a wide range of lenders, including high street banks, building societies, and specialist mortgage providers.

How Much Can You Borrow with a Home Mover Mortgage? 

The amount you can borrow with a home mover mortgage will depend on various factors, including your income, credit score, and the value of your current property. Lenders will typically take into account the equity you have built up in your existing property and use that as security for the new mortgage. In general, you can expect to borrow anywhere from 75-95% of the value of your new property, depending on the lender and the specific terms of the mortgage.

The Differences between Home Mover Mortgages and other types of Mortgages?

The main difference between home mover mortgages and other types of mortgages is the fact that you will be required to provide evidence of your existing property ownership. This means that you'll need to provide proof of your current mortgage, as well as any outstanding debts and liabilities that you may have. In addition, home mover mortgages typically come with higher deposit requirements than first-time buyer mortgages, usually 5-10% of the value of the property.

How to Qualify for a Home Mover Mortgage 

The process of qualifying for a home mover mortgage is similar to that of any other mortgage. Lenders will typically consider your income, credit score, and employment status, as well as your existing property ownership. To improve your chances of qualifying for a home mover mortgage, it's essential to maintain a good credit score, and to keep your finances in order. Additionally, having a stable income and a good employment history will also be looked upon favourably by the lender but a Mortgage Broker should be able to consider all circumstances.

What to Keep in Mind when Applying for a Home Mover Mortgage 

When applying for a home mover mortgage, it's important to be aware that the process can take longer than it would for a first-time buyer mortgage. This is because lenders will need to take into account the value of your existing property, and may also require a property valuation to be conducted. Additionally, it's a good idea to have your existing mortgage and any other debts in order, as this will make it easier for lenders to assess your affordability. 

In summary, Home mover mortgages are the loans specifically designed for people who are looking to purchase a new property and already own a home. They offer advantages like being able to borrow more money and more flexible terms than first-time buyer mortgages. The process of qualifying for these mortgages is  similar to that of any other mortgage, and typically involve considerations such as income, credit score, and employment status. Additionally, it's important to keep in mind that home mover mortgages may come with higher deposit requirements than first-time buyer mortgages, and the application process may take longer due to the need to assess the value of your existing property. By maintaining a good credit score and keeping your finances in order, you can increase your chances of being approved for a home mover mortgage and make the process as smooth as possible.

It's also important to shop around and compare different mortgage offers, as the interest rates and fees can vary significantly between lenders. It's a good idea to seek the advice of a mortgage broker who can help you find the best mortgage for your situation. In the end, It's a important decision and it's important to take time to carefully consider your options before making a commitment.

If you prefer, you can also look at Remortgaging