Compare home mover mortgages
Whether you’re upsizing or downsizing, our home mover comparison can help you find the right mortgage. Compare home mover deals from the top lenders in Ireland.
Home mover mortgage rules
To make it clear what you can borrow if you want to move home, the Central Bank set out some rules for second time buyers, which cover home movers:
Loan to value (LTV) limit
The maximum LTV is 80%, this is the percentage of the property’s value you can borrow. This means you’ll need a 20% deposit.
Lenders have some flexibility to go above this limit in some cases.
Each year, they can give an allowance of 20% of the value of mortgages to second or subsequent buyers.
Loan to income (LTI) limit
You can borrow up to 3.5 times your gross salary with a mortgage. If you’re getting a mortgage with someone, it’s 3.5 times your combined salaries.
Again, lenders may be able to increase this limit for you. They can give an allowance of 10% of the value of mortgages to second buyers in a year.
To be considered for additional funds or a higher LTV, you’ll need to be a low risk borrower, this will require a good credit history and a good level of income.
How to get a home mover mortgage
These are the basic steps for getting a home mover mortgage and moving to a new home:
- Get your current home valued
- Check how much deposit to save and how much you can borrow
- Compare mortgage deals using our comparison above
- Apply for an approval in principle
- Find a property that’s in budget, and make an offer
- Find a solicitor to carry out the legal proceedings
- Confirm your mortgage and sign your mortgage offer letter
- Transfer your mortgage protection insurance and home insurance to your new property
How to choose the best home mover mortgage
To find the right mortgage for you, there are a few things to consider:
- Check the LTV matches your eligibility: Comparing products with the right maximum loan to value, will narrow your search down.
- Choose a fixed or variable rate: If you’ve increased your mortgage, your repayments will be higher so you may want a fixed rate mortgage with set payments. If rates are low, you may opt for a variable rate mortgage which lets you switch, redeem and overpay your mortgage for free.
- Compare interest rates: The lower the rate, the less interest you’ll pay, making your repayments cheaper as well as the cost of your mortgage overall.
- Choose a fixed rate term: If you choose a fixed rate mortgage, you’ll need to decide how long to fix for. Having just moved, you may want a long fixed term, or you may choose a shorter term with a cheaper rate.
What happens if you’re in negative equity?
If you owe more on your mortgage than the property is worth, this often prevents you from being able to move.
However, some lenders may let you transfer the negative equity over to your new mortgage if you meet other criteria e.g. a good repayment record for the past two years.
You should speak to your lender, a mortgage broker (mortgage credit intermediary), or a financial advisor for advice.
Home mover mortgage FAQs
Can I keep my tracker mortgage if I move home?
If you have a tracker mortgage and you don’t want to give it up, you may be able to continue on that type of mortgage when you move home.
Although trackers are not available to new customers, some lenders offer follow on tracker mortgages for existing tracker customers.
This means staying with the same lender and the same or similar product terms as before.
Check with your lender whether they offer a tracker mortgage for home movers.
Can I move house if I have a fixed rate mortgage?
It is possible to move if you have a fixed rate mortgage but you may have to pay an early redemption charge (ERC), which could cost thousands of euro.
To avoid paying fees, you may be able to:
- Port your mortgage over to the new property
- Wait until the end of your fixed term, when you’re free to redeem your mortgage without penalty
Porting over your mortgage involves staying with the same lender and reapplying for a mortgage with them. This may mean missing out on a better interest rate with another lender.
If your circumstances have changed since you last applied, or you wish to borrow more, you may not be eligible to port your mortgage over.
You’ll need to weigh up your options and the costs involved in each. For example paying an ERC and switching your mortgage to a better rate, or porting your mortgage over and paying a higher interest rate.
What fees and costs do I have to pay when moving home?
There are several fees to pay that can’t be added to your mortgage, including:
- Valuation fee, this covers a report that’s given to your lender
- Survey fee, to check the structural condition of the property, before you buy
- Solicitor fees, to manage the process and legally transfer the property into your name
- Stamp duty, this is a type of tax you must pay
- Early redemption charge, this may apply if you leave a fixed rate mortgage before the term ends. You could save money by porting your mortgage over to the new property.
To help you move your furniture, appliances, and other belongings, you may need to pay for removals or temporary storage.
Once you’ve moved, depending on the condition of the property and your budget, you may wish to redecorate it, or do some more substantial renovations.
