transferring mortgage when moving?

lisasmith_3

We have had a mortgage since last year. We are looking to move home but not to anywhere bigger or more expensive. Either the same value home or cheaper. The problem is we had a baby in nov last year and have had only one income since. We pay our mortgage payments with no problem but if we were to move what is the deal with the application and income situation? We obviously got our mortgage last year based on joint income but now our income is less than when we got the mortgage. Can we move? How does it work? Would we have to do a whole new mortgage application? if so then we wouldnt be able to borrow enough for a shed let alone anything else based on our joint income. Any information or advice please? (we are planning to stay with our current mortgage company as are on a fixed rate) I dont plan on going back to work at least for another few years as our baby is only small but we wanted to move way before then. To confirm, we dont neccessarily want to borrow more, just move property. Thank you so much.

mic200202

Anytime you move you would be able to transfer the mortgage product ie the rate your're on to the new home to but not the actual mortgage.So while you may be able to avoid any early repayment fees in your mortgage deal,you will need to make a new application (even with the same lender)with all that entails. Re: the income - its important to use everything you possibly can - you may find that family and working tax credits + child benefits can all add up. Also, when assessing your application lenders are concerned with affordability - don't assume they can't lend because of this or that. Your loan to value ie the amount you are borrowing compared to house value is important too - if the security is good then lenders can be flexible on lending policy even in todays market.A good broker will help you with this too.

dimbo61

It will cost you alot of money even if you just move next door so why the need to move after only one year in your home.
If you can afford the fixed rate mortgage and are happy why move !
You might well get offered a smaller mortgage and be in negative equity right now so sit tight and enjoy your new family and if you can overpay.
Good luck