Moving home can be one of the most exciting and great times of your life, however it can also be one of the most stressful. You might think you don’t need to bother with an adviser or the help that a First Time Buyer may need as you have already done the process before; but the market is ever changing. It can be just as confusing and difficult second, even third time around.
Hopefully this blog can provide some helpful information and tips for moving house, and then if you are interested in learning more, or need an adviser to help you move, you can call us today on 0333 320 8658.
To begin with, you will have to decide what you are going to do with your current mortgage.
It is now possible to transfer your mortgage to a new property. The size of the mortgage may increase or decrease due to the value of the new property, so you will still have to go through the general loan process. If your mortgage must increase then your lender could ask you to take out the difference as an additional mortgage – this could come with higher interest fees and arrangement fees, so make sure you are aware of what is going on.
If you wish instead to replace your current mortgage then you have a couple of options. You can either:
- remortgage with your current lender: this way you will potentially find a better mortgage rate, however you could be faced with early repayment charges. It is important when doing this that you check how much the fees you will have to pay will amount to, and then compare it against the money you could save through a better rate. It may be better to wait it out a little longer before moving/remortgaging so the charge is reduced or has ended.
Or
- remortgage with a new lender: you could use the new mortgage to pay off your existing one, or by selling your home. it could be beneficial if your houses value has risen since you bought it. Going to a new lender could lead to a further improvement in the mortgage rate. However, like remortgaging with your current lender, there will be repayment charges and other fees such as arrangement and valuation fees that you will have to weigh up against the money you would save.
You will have to also decide what sort of property you wish to move into, as this will affect your costs.
You may want to move into a large property than your current one, which is known as upsizing. To do so, you must be able to prove to your current or new lender that you will be able to keep up with the higher rates. Proving your ability to afford higher repayments could be shown through wage increases, or reduced outgoings. If your current property value has increased, you will have a higher chance of being accepted. If you have struggled to keep up with your current or previous mortgage repayments, then you may not be able to secure a mortgage on a larger property.
On the other hand, you may wish to downsize. Moving into a smaller and cheaper property will of course result in a decrease in your loan size and therefore, your monthly repayment amount. In some cases, you may even be able to buy your new home outright.
Sometimes, moving to a new house will be something to reconsider. If your homes value has decreased since you moved into it, you may not be able to secure any type of mortgage on a new home, as you could be in Negative Equity. Under certain circumstances, some lenders will provide a new mortgage, if the mortgage is a necessity - For example, if you are required to relocate for work.
If you are still unsure if this is the right thing for you, or would like some advice on your own moving situation, then please give us a call today on 0333 320 8658, or send us an email at info@viewfinance.co.uk. We will be happy to help you however we can.
