From climbing up the ladder to downsizing, we're here to recommend the right mortgage.
So you're thinking about moving house?
Has your home finally reached its maximum capacity? Are you relocating for work? Or do you just fancy a change?
Whatever the reason, without the right guidance, it can be a bit of a tricky process!
Did you know, hundreds of thousands of people move every year, it's commonly referred to as one of the most stressful things you can do!
That’s why expert guidance can really help make the process as smooth as possible.
So, what’s first?
Your existing mortgage
Digging out your existing paperwork is the first step. You'll need to have all the current mortgage information to hand before you'll be able to accurately work out the plan for moving. If you can't find it, speak to your lender and ask them to send out a new copy of your mortgage statement.
The type of mortgage you have can have a big impact. For example, if you're in the middle of a fixed-rate deal and looking to move house before your initial period ends, then there could be early repayment charges to pay.
If this is the case, porting your mortgage could be an option. This is where you pick your mortgage up and move it to another property. This usually means you'll avoid paying early repayment charges (depending on the new mortgage amount).
How much can you borrow?
Just like when you first bought, you’ll need to check to see how much you’re able to borrow.
To get an accurate figure, speak to a mortgage broker. They’ll look at various details including your income and outgoings.
Decision in principle
Before you start viewing properties, it’s advisable to get an agreement in principle in place. This is a credit and affordability check with a specific lender to make sure they’re willing to lend to you.
This shows that you’re in a proceedable position to the seller and estate agent.
Now you have your agreement in principle in place, you’re able to start viewing properties.
Make a list of all the essentials, but also be clear about what you could potentially compromise on. A house that ticks all the boxes is either very rare (or unaffordable!)
Selling your home
Depending on the market, many estate agents will want to make sure you’re in a proceedable position not just with the mortgage, but with your current property too. If you’re sold subject to contract, you’ll be in a much stronger position to negotiate than if your property isn’t even on the market yet.
Making an offer
Before making an offer, work out how much you can afford and decide what the property is worth to you. It’s easy to get carried away, especially if it’s a popular property.
Remember that the estate agent is working for the seller and their job is to try and get the best offer for that property.
Find out about the sellers' position. For example, if the property is empty, the seller may be more open to a lower offer to avoid paying monthly property costs/bills.
Now that you have the sale agreed and an offer accepted on your future property, you’ll have everything in place to submit the new mortgage.
At this point, the mortgage broker will run through the final figures.