selling a property Archives

What Happens to Your Mortgage When You Move?

May 11, 2021 By Mortgage Light Leave a Comment

When you move house, you may have the option of taking your current mortgage deal with you to your new property, known as mortgage porting. If you choose not to take up this option, or it isn’t available to you, then you will need to repay your existing mortgage deal from the sale proceeds of your house and take out a new mortgage to help you buy your next property. You can do this with either your existing lender or with a new one.

It’s important to note that mortgage porting only applies where you currently have some sort of special mortgage deal. This could be a fixed interest, tracker or discounted rate facility with your existing lender. It does not apply where you have a standard variable rate facility.

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What Happens When You Sell a Shared Ownership Property?

April 21, 2021 By Mortgage Light Leave a Comment

If you have a shared ownership property, you will encounter some restrictions if and when you want to sell it on. If, however, you have staircased to 100% ownership, then these restrictions may not apply to you, as you are generally considered the sole owner of the property. It’s important to check the details of your lease to see if this is the case for you.

If you do not own 100% of the property, however, then there is a process you must follow when it comes to selling up. This process will be detailed within your lease, but here’s a guide to what you can expect when selling your shared ownership property.

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Mortgages and Divorce

March 18, 2021 By Mortgage Light Leave a Comment

Going through a divorce or legal separation can be a very difficult and stressful process, even if the separation is amicable between both parties. Untangling personal finances and separating joint assets fairly can be tricky and is often far from straightforward, particularly if you own significant assets such as the matrimonial home. This can be even more difficult and contentious where there are dependent children involved in the relationship. The decision on how to deal with the family home will, in most cases, have an impact on these children in many ways.

Unfortunately, 42% of marriages end in divorce, however one consequence of this statistic is that mortgage lenders are familiar with these types of situations. There are generally options available to you when it comes to refinancing an existing joint mortgage on the family home or getting a new mortgage facility to buy a new home.

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What is a Mortgage Agreement in Principle?

February 25, 2021 By Mortgage Light Leave a Comment

If you are looking to purchase a property, you may come across the terms ‘mortgage agreement in principle’, ‘mortgage in principle’, or ‘agreement in principle’. These three terms all refer to a statement from a lender saying that they agree ‘in principle’ to provide you with the borrowing you require subject to your information declared being verified, and the property you find being suitable to lend against.

A mortgage in principle is designed to give borrowers a strong indication of how much they may be able to borrow and some reassurance that they meet the lender’s basic lending criteria. As soon as you’ve made up your mind to start home-hunting and have an idea of what you may need to borrow, it’s generally a good idea to apply for a mortgage in principle.

This way you can start to search the property market with the confidence that you should be able to obtain the level of mortgage borrowing that you will eventually need to support a property purchase in the property price range you are looking at.

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