Home reversion – moving home

Do I have to take advice?

+50/RIO/Holiday Let Mortgage

  • If you’re borrowing the same or less, it’s up to you whether to take advice. We would strongly encourage you seek financial advice to ensure this is the best option for you and takes into account of your personal circumstances. You can also decide to apply to us directly (called Execution only) but you will not get the same regulatory protection and we will not assess whether this transaction is suitable to your personal circumstance.  We may reject your direct application if we have reason to believe this is not in your best interests.
  • If you want to take additional borrowing, you must take advice.

Retirement Mortgage or Equity Release Mortgage

  • You must take advice.

If you’re taking out additional borrowing or have a Retirement or Equity Release Mortgage, we need to be sure you’re making the right choice for your individual circumstances. A financial adviser or broker will be able to talk you through your options in detail and apply on your behalf.

What if I want to apply for additional borrowing at the same time? 

  • You must take advice
  • Your adviser will need to submit a separate application form to apply for the additional borrowing at the same time as your Moving Home application.

If I need advice, what do I do next?  

  • You should contact your adviser first. Your adviser will discuss your options with you to make sure the decision is right for you
  • If you don’t have a financial adviser, unfortunately we can’t recommend one, however, Unbiased.co.uk is a good place to start your search
  • If you decide to go ahead, your adviser will let us know and they’ll need to send us a completed application form, your application fee and your valuation fee
  • You may have to pay to receive financial advice

Do I need a solicitor? 

  • You’ll need to instruct a solicitor to act on your behalf. Your solicitor will undertake the conveyancing to sell your current home and purchase the new one
  • We’ll instruct a solicitor to act on our behalf. Our solicitors will transfer the loan to the new property and will need to be satisfied with all matters relating to the title of the new of the property
  • The solicitors will communicate with each other to ensure a smooth transfer
  • You’ll incur the cost of both ours and your solicitor.

Will I have to pay any fees?

  • You’ll need to pay our administration costs of £250 for transferring the mortgage to the new property. You’ll need to pay this when you submit your application
  • We’ll need a valuation of your new property and you may need to pay a fee for this depending on the property purchase price/value
  • You’ll need to pay both our and your legal costs. Our legal fees are variable and depends on the amount of work the solicitor does. Please contact your solicitor for details on the fees they charge
  • You’ll need to pay your financial adviser for the cost of providing advice
  • Please see below our tariff of fees and charges (need to link this in)

How long does the process take?

  • Once we receive the application form and fees, it takes a few weeks to issue you with a mortgage offer. This depends on how quickly the valuer can access the property to conduct a survey. We may also ask your adviser for information so we can assess your ability to repay the loan, for example, for a Holiday Let Mortgage we’ll need  a letter from a holiday let agency with expected holiday let income for the new property
  • Once our solicitor receives our mortgage offer which instructs them to act, it takes up to 3 months to complete on the sale of your current property and the purchase of your new property.

I want to move soon, how do I start the process?

  • When you’ve agreed a sale on your current property and agreed a price on a new property to purchase you can start the process
  • If you took out a +50/RIO/Retirement Mortgage before 04/12/2020, contact us on 0800 289 358 and we’ll send the documents to you to start the process

(Dan this is one for you on how best we can communicate the contact with LINK)

  • For all other mortgages, we’ll need a completed application form (submitted by your financial adviser if you’re receiving advice) together with our administration and valuation fees. For Holiday Let Mortgages we also need a letter from a holiday let agency to confirm expected low, mid and high season rent for the new property.

What happens next?

  • If you’re also taking out additional borrowing, we may ask for information to verify your ability to repay the loan
  • We’ll arrange for a valuer to visit the new property and they’ll prepare a valuation report for us
  • We’ll review the valuation report to assess whether the new property is acceptable
  • If it’s acceptable, we’ll send you paperwork to approve the transfer of your loan and will send this to you and to our solicitors to instruct them to act
  • Your solicitor should then contact our solicitor to arrange for the loan to be transferred to the new property.

Can I port a mortgage to a property I already own?

  • Yes, you can sell your current property and transfer your mortgage to a property you already own if it is currently mortgage free.

Will I have to repay my loan?

  • + 50/RIO/RM/ER – No, provided the new property is of an equal or higher value than your current property
  • ER – If the new property is of a lower value, you may have to repay some of your loan. The amount that you need to repay will depend on your age and existing loan balance
  • +50/RIO/RM – if the property is of a lower value you may have to repay some of your loan. The amount that you need to repay will depend upon the existing loan balance.
  • HBTL – if the mortgage is not affordable, you may have to repay some of your loan.
  • For all mortgages – No early repayment charges will apply if we ask you to repay some of your loan.

If I want to repay some of my loan, would I pay Early Repayment Charges?

  • Yes, if it’s your choice to repay part of your loan and you’re within the period where early repayment charges apply.

Attach documents:

  • Moving Home Application Form
  • Holiday Buy to Let Moving Home Application Form
  • Tariff of Fees and Charges

If you have any other questions, please contact us using the details below or speak with your adviser.

Our Contact Details:

Tel: 0800 731 4076

Email: contractvariations@hodge.co.uk

If you took out a +50/RIO/Retirement Mortgage before 04/12/2020, please contact us on:

Tel: 0800 289 358

Email: contractvariations@hodge.co.uk

 

 

Important documents

Origination Application Form

Holiday Buy to Let Origination Application Form

Tariff of Fees and Charges