Can I increase the mortgage value when I port? This is essentially staying with the same lender and moving your current mortgage deal from your existing home to a new property. If you are in the situation where you’re facing an early repayment charge, one option is to port your mortgage. Whatever the situation, we can help you understand what the mortgage would be and what your options are. The opposite situation is where you might want to downsize to a smaller property. They can still move to a bigger house as they’ve got all that equity. Some people don’t have mortgages and have what’s called unencumbered property. So make sure you know the anniversary of your mortgage deal, whether it’s a two year deal, three, four or five years. That could mean you have to pay a large early repayment fee on your mortgage. For example, it wouldn’t make sense to get a new fixed mortgage for five years and then, six months later, decide you want to move. What I advise all my customers is to understand your long term plans. How does my mortgage affect my plans to move? 15% gets you an even better deal, and if you’ve got 25% and above that will get you an excellent mortgage. If you’ve been in the house for 10 years and have reduced the mortgage, the likelihood is that you’ve got a big chunk of equity.Ī 10% deposit is a good starting point. If you’re moving home, your equity is your deposit. The bigger the deposit, the better deal you’re going to find. What deposit do I need and how much can I borrow? At the moment not many houses are coming onto the market but once you know that information you can consider all your options. Whatever your plans, it’s good to understand your position. People are often surprised to find they can move a two-bedroom terrace to a three or four bedroom semi-detached or detached home. Or perhaps you have a new partner on the mortgage which means you can combine your incomes. Now, you are likely to be earning more money or have been promoted. It’s important to say that when you buy a house as First Time Buyers, you are usually lower on the career ladder, and haven’t been working so long. We’ll help you explore how much you can afford to borrow by looking at your income and outgoings. It’s always free to speak to a mortgage broker in the first instance. There may also be broker fees for the advice, which is payable once you make the application and put your property on the market. You don’t need a large sum of money in the bank.Ī mortgage broker will help you understand how much your property is worth, the mortgage, your equity and all the costs of moving. You might be concerned about how much this will all cost – but I always remind customers not to worry, that all these costs will come out of your equity. ![]() There will also be an estate agents’ fee to market and sell your property. ![]() Stamp duty is another important consideration. Not everyone realises that the equity in your home could go towards the deposit on your next house. Many people miss the opportunity to get a bigger bedroom or garden by buying a larger home. Property prices have gone up and interest rates are still low. It’s important to remember that when you’ve had a mortgage for five or ten years, the debt has been reducing. Often our clients are unaware of the total amount of equity they have, and it has stopped them from wanting to move. First of all, how much your house is worth and how much equity you have in that property. ![]() What moving costs do you need to consider as a home mover? Daniel Condren explains the mortgage process and what is involved if you are moving house.
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