For many this can be a daunting experience, although in reality there isn’t much difference from being a First Time Buyer.
There are a few things we must consider before going down this route.
Things to consider
before moving home
1. WHAT IS MY HOUSE WORTH?
This plays an important part. As a seller you would like to receive the most amount of money for the house and buyers would like to pay the least amount of money in purchasing.
To some degree, it is like selling a car. Sometimes people can price the house too high and sometimes too low and this is ultimately down to individual circumstances. You will find most competent estate agents will tell you a high, medium, and low price for your home although this isn’t always the case.
Generally speaking, you may find it takes longer for a property to sell at a higher price than a cheaper price, as it takes longer to attract the right audience for your property such as, the property's character or being a project, location, space, garden, garage, etc. This is because you are trying to find a specific type of buyer and match their needs whereas at the lower end of the price you may attract alternative buyers who are open to compromise with their needs to get something a little cheaper.
2. HOW MUCH CAN I BORROW?
Now that you know what your property is worth, it's time to find out what you are able to borrow. Remember, the longer you borrow something, the cheaper the repayments are, and the shorter the term the higher the repayments are.
Having a mortgage over a longer period does mean you will have more interest to pay as you are paying it over a longer term so it can be more expensive.
All lenders assess income in different ways such as overtime, bonus, commissions as well as benefits, maintenance, foster care income, contractor income, CIS income, and rental income.
3. WHAT ARE THE COSTS INVOLVED FOR BUYING AND SELLING?
You will need other purchasing costs such as:
• Estate agent fees, • Solicitors’ fees for selling and buying, • Stamp duty, • Removal costs, • Mortgage broker fees • Potential early repayment charges from an existing mortgage although most mortgages are portable but not all are.
You may also need to consider future running costs of your new house such as council tax, utility bills insurances etc.
4. WHAT TYPE OF MORTGAGE WILL BE SUITABLE AND APPROPRIATE FOR ME?
Many mortgages are portable which means you can transfer them to your new property.
If you are borrowing more on your mortgage, this will be split between an old product and a new product.
If you are borrowing less then this may result in partial early repayment charges, but for some, this depends on when your current mortgage deal comes to an end. Your existing lender will assess this as a new mortgage application if you are porting, although amendments can be made such as adding or removing a party to the new mortgage. The application will be made as though you are borrowing the money for the first time and all evidence of earnings will be required as well as a satisfactory valuation on the property.
In either case, it may be better for you to port your existing mortgage, however on some occasions it is better not to and this could be due to overall costs, suitability of the property, your current provider not being as generous on affordability, and your current credit profile.
Whatever your situation is,
Robin Hood Mortgages will be more than happy to discuss all your options.
All of this will help you decide whether moving is suitable for you.
Whatever your situation is, we will be more than happy to discuss all of your options to try and assist you and make things easy. We will estimate all your costs to ensure you have enough money to go through the transaction as smoothly as possible. We will be able to shed some light on the approximate monthly repayments to allow you some time to budget also if moving will be a good option before putting the property on the market.
Whilst Robin Hood Mortgages Ltd take all reasonable steps to ensure the accuracy and timeliness of the information contained on this website. We cannot guarantee this and accept no liability for any errors or omissions. Any information provided on this website is for information purposes only. Full advice and recommendation can only be obtained by a suitably qualified adviser. Under no circumstances should any of the information contained within this website be construed as advice. You should seek professional advice in respect of your own circumstances. The information contained in this website is subject to UK regulatory regime and is therefore intended for consumers based in the UK.
think carefully before securing other debts against your home. your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
Robin Hood Mortgages Ltd is Authorised and regulated by the Financial Conduct Authority under reference 987739. You can check this on the FCA’s website www.fca.org.uk or by contacting the FCA at 0800 111 6768. The firm is registered in England & Wales at P.O. Box 11018, Nottingham, NG5 0NE. Telephone: 01156 712351 under reference 11416342.
If you wish to register a complaint please write to the address above or email us on info@robinhoodmortgages.co.uk
A summary of our internal procedures for the reasonable and prompt handling of complaints is available on request and if you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service at www.financial-ombudsman.org.uk or by contacting them on 0800 0234 567.
Although Robin Hood Mortgages are regulated by the Financial Conduct Authority, Business Finance, Loans and most buy-to-let and offshore mortgages are not regulated by the Financial Conduct Authority.
A Protection plan will have no cash-in value at any time and will cease at the end of the term. If premiums are not maintained, then cover will lapse and you may not be covered if a claim is made.
We do not charge a fee for residential mortgage advice. We charge an administrative fee for processing each of your mortgage contracts; our fees only apply when you decide to go ahead with an application.
