Good mortgage advice for moving home can make the process go smoothly and have you in the new home before you know it.
The last thing anyone who is moving home wants is a problem with the mortgage. No one wants holdups with transferring deeds or problems with the bank, or issues with the mortgage.
Getting good mortgage advice will have you well armed and ready for what can be a stressful time in your life.
At LHK Mortgages in Dublin, we have the best of mortgage advice for moving home in Ireland.
Look at your existing mortgage
Looking at your existing mortgage is a key piece of advice when you are considering moving home. You will need to know all the terms and conditions of the existing mortgage when looking to finance the purchase of the new home.
The structure of an existing mortgage can decide how and when you can move home, and the mortgage.
Can you move the mortgage from one property to another, is there a penalty for finishing an existing mortgage before the term is up, and will you lose favourable interest rates when moving the mortgage?
All questions you will need to answer when taking out a moving home mortgage.
Your existing mortgage may be working well, and you should be careful about moving home and assuming the mortgage will work the same on the new property.
Let’s take a look at the ins and outs of a moving home mortgage in Ireland.
What is porting a mortgage in Ireland?
Porting a mortgage in Ireland is when you replace the property on an existing mortgage with your new home. You move the mortgage balance and move the mortgage from one property to another when porting.
Many home buyers in Ireland assume that when you buy a new home, your mortgage will be the same on the new house as it was on the old home.
In reality, porting a mortgage in Ireland is not a straightforward process. Number one issue is that most lenders may not allow you to port a mortgage from one property to another.
If you are lucky enough to have a tracker mortgage, you may be able to switch the mortgage from one home to another. An issue here could be missing out on a lower mortgage rate, one that could save you considerable money over time.
Homeowners with a long-term fixed-rate mortgage may be able to port the mortgage to their new property, but, again, interest rates and house prices could be an issue.
Porting a mortgage only really works if you are buying and selling at the same time, and buying a new home close to the value of the present home.
As we all know, this rarely happens, and you will more than likely need to take out a new mortgage.
Do I need to take out a new mortgage when moving home?
Yes, you will most likely need to take out a new mortgage when moving home in Ireland.
Moving home in Ireland will mean dealing with mortgage lenders again and securing the best possible mortgage deal. The moving home new mortgage process can be stressful too, but following a few simple steps can make it easier on you.
Step 1: Look at the new property value vs the old property value
It may seem obvious, but property values change, and you should look at the value of both properties when getting a moving home mortgage.
If the value of your new home exceeds that of the existing home, it could mean taking out a more expensive mortgage than the one you have already.
A more expensive new home can be a problem if your existing mortgage is fairly new and you still have a considerable balance to pay.
Step 2: Can you afford the new home mortgage?
It is a question you will need to ask, and any mortgage lender will certainly ask you.
Remember when getting the existing mortgage, and you had to give all your financial documents to the lender, from payslips to bank accounts to deposit details.
It will be the same for the new mortgage, and if you are paying more, it could be an issue.
You have to think if you can afford the new mortgage on your current salary, especially if you now have kids or maybe they are thinking of going to college and still need financial support.
Step 3: Managing the time between sale and purchase
Many people don’t always think about the time between buying the new home and selling the existing one.
In an ideal world, both happen at the same time and at the price you expect. What happens, though, if there is a holdup between the two, can you afford to pay the mortgage on both homes for a time?
You could also be in a position where you don’t get the price you were expecting on your old home. You may have a larger balance to add to your new mortgage than you were expecting, and this will put pressure on your finances.
Expect the worst when planning to switch a mortgage from one home to another.
