Moving home, whilst an exciting prospect is also a cause of stress and anxiety for many due to the large number of variable factors that exist. Undoubtedly one of the greatest concerns for any home mover is both the cost and the availability of their new mortgage arrangements.
Having gone to great lengths to sell your home and then find the perfect house to move to, it is very frustrating to find that you then cannot obtain a mortgage that fits on the terms you want or the budget you can afford. Our advice is simple - get the mortgage agreed first.
There are lots of different factors to consider when choosing the right mortgage. The common key factors are:
- The rate being offered
- The set up charges
- Whether overpayments are allowed
- Whether interest accrues daily, monthly or yearly
- Whether to opt for a fixed rate or a variable rate
- How long the initial rate offer lasts
- The service standards of a particular lender
- How quickly a lender can process your application
Searching for accurate and meaningful answers to these questions on the net is a hopeless chore and by far your best source of information would be from a whole-of market firm of Mortgage Brokers such as ourselves.
Once the finances are sorted then it would be prudent to consider some of the other financial implication associated with a home move.
Choosing an Estate Agent - Ideally you should pick a firm of agents to market your home based upon their experience within the local vicinity, the tools available to them in order to present your home in the best light to the widest audience and of course the fees that they intend to charge for selling your property. These issues are dealt with in more depth in our article 'How to choose an Estate Agent' which you may find useful.
Solicitors fees represent another large commitment and if you are selling and purchasing there will be two fees (one for each transaction). The costs for conveyancing services can vary tremendously from one firm to another and will also be affected by where you live. Conveyancing (the term for the legal work associated with property matters) is usually charged at a fixed price but will only represent a portion of the total bill. In addition to the Solicitors work there will also be compulsory disbursements that the firm will conduct on yours and the lenders behalf such as land registry and local searches. These check that the ownership and title of the property are in order. Our advice is to obtain three quotes from Solicitors local to where you intend to purchase and don't be afraid to negotiate on the fees if you feel they are excessive.
By far the largest cost found on the solicitors bill will be the Stamp Duty Tax. For properties upto £125,000 there is no tax to pay. From £125,001 to £250,000 it is calculated at 1%. £250,001 to £500,000 is 3% and then it is 4% for property values of £500,001 or more.
Removal costs are another often overlooked cost. Of course, you could choose to hire a van and move yourself and expect to pay less than £100 but to be professionally moved you should probably allow about £1000.
If you would like to visit our website, you will find lots of useful information that is relevant to the home mover which will explain the process, the costs of moving, an explanation to the different types of mortgage available and also a useful mortgage calculator that will help you understand what you may be able to borrow and the likely monthly payments associated with your next mortgage.
You can then get in touch with us and we will be happy to advise you on your options and go on to obtain an agreement in principle for you so that you are sure the monies will be made available to you once you find the house of your dreams.