Will I need to change my mortgage?

The vast majority of contemporary mortgage packages are transferable (or ‘portable’) from one property to another (subject to valuation costs and probable transference fees of £3-400) so you will not necessarily have to change your current deal. However, it may be a good idea to seize this moment to secure a better deal on your mortgage and to take advantage of competitive rates or terms that are more favourable to your circumstances. However, if you do decide to change mortgage you will need to work out if your current loan is subject to any penalties or charges and factor in these costs accordingly. These might include:

Early repayment charges: Usually charged at 1-5% of the outstanding loan, a percentage of the original loan amount or amount already paid or interest on a set number of months. Either way, always make sure that the benefits of a prospective deal are significant enough to offset any losses here.

• • Exit Fees
  • Arrangement Fees: Charged by  a new lender to set up a mortgage.
  • Booking Fees
  • Legal Fees: There are an assortment of legal fees to pay when you mortgage, although many packages now include free legals or cash back options.

If, after having taken all of the above costs into account, you decide to proceed with a mortgage, make sure that you take a suitable amount of time to shop around and consider all of the available options (although you could also approach your current lender to see if they are prepared to match the terms of a chosen deal, thereby potentially saving time, money and hassle).

You will also need to consider what type of mortgage you want (such as a fixed rate, tracker or discount mortgage for example). All of these options are subject to both pros and cons, so you should probably speak to an independent mortgage adviser to help you make your decision.