Moving house or being afirst-time buyers can be exciting, but it can also cause stress and anxiety formany people. This is due to the many factors involved. One of the biggestworries for anyone moving is the cost and availability of a new mortgage.
You worked hard to sellyour home. You also searched for the perfect new house.
It is very frustrating ifyou cannot get a mortgage that meets your needs. It can be even more upsettingif the mortgage is too expensive for your budget. Our advice is simple - getthe mortgage agreed first.
Key Factors in Choosing a Mortgage
There are lots ofdifferent factors to consider when choosing the right mortgage. The common keyfactors 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
Finding clear and helpfulanswers to these questions online can be very difficult. The best source of informationis a full-service mortgage broker like us.
Additional Financial Considerations
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 - You should choose anagent based on their experience in your area. Look for the tools they use toshowcase your home well. Also, consider the fees they will charge for sellingyour property. These issues are dealt with in more depth in our article 'How tochoose an Estate Agent' which you may find useful.
Solicitor fees can be abig expense. If you are selling and buying a property, you will have two fees.One fee is for selling, and the other is for buying.
The costs forconveyancing services can vary a lot between different firms. They will alsodepend on where you live.
Conveyancing is the legalwork related to property matters. It usually has a fixed price, but this isonly part of the total bill.
Along with the work doneby the solicitors, there will be required costs. The firm will handle thesecosts for you and the lender. These include land registry fees and localsearches.
These check that theownership and title of the property are in order. Our advice is to obtain threequotes from Solicitors local to where you intend to purchase and don't beafraid to negotiate on the fees if you feel they are excessive.
By far the largest costfound on the solicitors bill will be the Stamp Duty Tax. For properties up to£125,000, there is no tax to pay. From £125,001 to £250,000 it is calculated at1%. £250,001 to £500,000 is 3% and then it is 4% for property values of£500,001 or more.
Removal costs are anotheroften overlooked cost. You can rent a van and move yourself for under £100, buthiring professionals will likely cost around £1000.
Find More Information and Get in Touch
Visit our website forhelpful information about moving homes. You will find details about the movingprocess and costs.
We explain differenttypes of mortgages. There is also a mortgage calculator. This tool helps yousee how much you can borrow and what your monthly payments might be nextmortgage.
You can then get in touch withus and we will be happy toadvise you on your options and go on to obtain an agreement in principle foryou so that you are sure the monies will be made available to you once you findthe house of your dreams.