Did you know? Your mortgage too can move home


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Moving to a new home when already you have a mortgage obligation on the existing one may sound tricky. However, to be rational, it is not that complicated to arrange a mortgage for moving home. There is a due process for that, just follow that and enjoy the stay at a new home with no anxieties.

Factors that come under consideration while moving a mortgage

Big obligations include multiple factors. Whether you get them for the first time or shift them for a new purpose, many things come on the dissection table. For instance –

Moving a mortgage does not necessarily mean moving to the new lender.

Your credit score performance

  • Location of the new property
  • Price of the property
  • Your income
  • Employment type
  • Your Age

Moving a mortgage does not necessarily mean moving to the new lender

Varied lenders have varied policies on the above aspects. Your current mortgage lender too surely has its own way to deal with these factors.

When you start working, this happens

The initial part includes some basic formalities and some interactions between you and the current lender.

  • Contact the lender to inform about your intentions of shifting the obligation.
  • You need to apply for a new mortgage.
  • The lender then checks the affordability according to the new property.
  • If everything looks fine, the lender strategizes the shift of the deal. This includes the change in the rate quote and the repayment plans.

What if you need to borrow more?

This turns the whole situation as borrowing more money means going again through a round of all formalities. The lender calculates the value of the new property and then assesses your financial situation. This helps to decide if there is any possibility to give more amount or not.

Moving mortgage with bad credit – Possible? Or Impossible?

Now this is a twist in the story, as credit rating is an important and unavoidable factor. If your credit rating has degraded to a considerable level then the lender may act reluctant. However, this does not mean that you cannot keep a hope.


The best solution to the poor credit score issue is – Improve Your Credit Rating.

For that, here are some advisable ways –

  • Close the unused credit cards, bank accounts, store cards etc.

Such things take a big bite from your credit worthiness. May be you are not using them, but they show as the ‘financial commitments’ in your name.

  • Any financial association with the ex partner? Quit now

If you are a divorcee and living separately from your partner then do not forget to separate your financial responsibilities too. If your ex does not pay the obligations on time, it can affect your credit score and can bring it down.

  • Check credit file

Check your credit file to see that every information is correct. Wrong details can be destructive for your credit score status. Check the credit records at least 5 to 6 months before moving home.

  • Get the name on the electoral roll on the current address

This is absolutely necessary as someone may commit any crime or fraud from your old address. In that case, your financial life has to face devastating consequences. Get registered in the electoral roll and stay safe. Besides, lenders too check the name of the applicant here.

Property type affects

The type of new property is a dominating factor and affects the whole deal. The non-standard/ unusual properties have high risk for the lenders. Such properties are difficult to resell due to the less number of options and this makes them a bad choice to repossess.

Such properties include –

  • Listed buildings
  • High rise flats
  • Unique properties
  • Ex local authority
  • Non-standard construction
  • Uninhabitable property
  • Timber frame
  • Concrete

Moving mortgage for a self-employed means….

Nothing complicated. Just as a salaried person proves affordability, you have to do the same if you are applying for a mortgage for self-employed. The lender asks for three years of trading proof. However, there is a variation here, some may ask for two years, some may want one year and few are even satisfied with the last 9-month proof.

The precise idea that has come out after the above points are that nothing is impossible. The only need is to follow the due process and then things reach their desired destination.

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