Stupid question but can you get turned down for a mortgage when you already have one?

[Darksideofthemoon19]

We are thinking of moving to another town. We currently own our first home and will obviously need to sell and buy another one.

How does it work with the mortgage? Will we have to apply for a new one? Never ever missed a payment but credit score isn’t great, no missed payments just that they say we owe too much even though we done really and have a good chunk of disposable income every month.

How do we do it?

Yes you can.

I’d recommend speaking to a broker, they’ll be able to advise you best on income multiples if you think you may not fit.

Or find your current lender and look it up, plug in your details. Lenders are not normally too bothered about credit score, it’s all about arrears, missed payments and CCJs or similar.

As PP said, yes - you can still be turned down.

Agree with the advice to use a broker - we used London and Company (L&C) and found them very good. They work based on commission from the mortgage provider, so no charge to you. However, check whether you're on a fixed length deal with your current mortgage. If so, it's likely that moving to another provider before the end of it would incur a hefty fine.

Yes, you have to re-apply for another mortgage and they re-do all the affordability checks etc. I would focus on getting any debts down and try to get some regular savings going if you think your new mortgage will be higher. Cancel anything you don't need and ensure you're on the cheapest utilities etc. Ideally you want some nice clean bank statements to supply the mortgage company with.

We used a mortgage broker, as we got a discount with our Which? subscription, which might be worth looking into. They helped us find a mortgage when DH was self employed and they look across lots of companies to find a mortgage that fits your circumstances.

What we didn't realise was that it's very easy to get a new deal with your existing mortgage company if you aren't moving. I didn't realise we didn't need to fill in any forms and it was all done over the phone. We could have saved ourselves hundreds.

You can be turned down. For a different property you will need a different mortgage. Why not try your existing mortgage company. They will know your history. Or a broker who can help find the best deal for your circumstances. Remember you may well be offered a mortgage but may nit be the lowest rate if you do have financial issues. Good luck.

Are you planning on buying a more expensive house? If not you might be able to port your mortgage which I think doesn't involve the same checks of your finances (but still needs valuation survey etc).

You can port your mortgage but I believe most lenders will still do an affordability check, even if the new property is the same valuation.

The only time they won’t is if you are switching rates with the same company.

Your mortgage may be portable. When we got this house we just brought the mortgage across, but we weren't borrowing anymore money.

We just went through a remortgage application and I can't believe how much stuff they wanted to know.

Hi
I am a mortgage adviser myself, the best place to start is to speak with your lender and ( especially it you are on a fixed deal) check if the mortgage is portable, so it means you can take your deal into the new home with no penalties. If that's the case and you dont need to borrow any extra on top it could be pretty straightforward, if you are at the end of the deal it's always worth shopping around, deals change all the time and it could save you some money there. Mortgage brokers are a great help, a lot of us wont charge you to look into it, check the deals. If you decide to go ahead with the deal than some might charge at application, other works on commission only, varies a lot. Good luck and feel free to come back with other questions!