Moving to a new home?
You’re not alone!
Even experienced relocators can find the process exciting yet sometimes daunting.
Despite having gone through the house purchase process before, with Resolute at your side you will be supported throughout the entire journey.
Whether you are taking a side step, upsizing or downsizing, our team of expert advisors are here to guide you each step of the way. Although this is an exciting time, there are still many factors to consider which can make this process feel overwhelming.
At Resolute we like to keep the process simple, and where better to start than at the beginning. In order to provide you with the most relevant and tailored advice, we will conduct a comprehensive review of your current circumstances.
Moving House Information
A crucial first step in the purchase process is understanding what you can comfortably borrow so that you can find the right house for you, that’s within your budget. We will take a full review on your current circumstances such as your income and expenditure as well as your current mortgage and property value. We can work the costs back depending on what you feel is an achievable sale price for your current property.
Your deposit for your new home can be made up from your personal savings, equity in your current property from the sale or a gift from a close relative or in some circumstances a friend. The size of your deposit determines how much mortgage loan you will need.
When looking for a new home, it pays to think big. The same rules apply as they did when you first purchased your home, a larger deposit could entitle you to better mortgage deals that weren’t an option when you bought your current house.
Although you may currently hold a mortgage, initial checks still have to be completed to validate you can borrow sufficient funds for your next home purchase. This will also be required by the estate agents, and confirms you are in a ready position to make an offer!
We cannot say exactly what the deciding factors are when completing this process with the lender but, at this initial check stage not only will you receive a certificate confirming the lender will let you borrow sufficient funds, most lenders at this stage will also complete a ‘soft footprint’ search on your credit file. This will indicate if there are any discrepancies early on, in the background that need to addressed.
An Agreement in Principle (A.I.P) or Decision in Principle (D.I.P) are the same thing and they are usually valid for up to 90 days, subject to the chosen lender.
Resolute are aware of the constant changes within the mortgage market and also take into consideration there could have been a few weeks from our initial appointment to you finding your dream home.
Therefore, there are many factors to consider when it comes to applying for your new mortgage. This is why we will take another review on your circumstances to confirm if there have been any changes and also be sure that what we originally discussed, is still the best way forward. What may have been a good solution at the start, could have changed now you have had your offer accepted.
It is at full mortgage application a further search is conducted on your credit file, this is known as a ‘hard footprint’ and will leave a mark on your credit file indicating the lender has completed this type of search.
The lenders under writing team will also review and assess your income and outgoings as well as any further information they may require to process your application.
They will also complete a basic property valuation. This is only to confirm the value of the property and that the property meets their minimum requirements, as the lender will now have a financial interest in the property, which is known as a first legal charge.
You have the option to have a more in depth surveys conducted on the property such as RICS home survey Level 1, RICS home survey level 2 or RICS home survey Level 3. More information about these surveys can be found on the RICS website. Home Surveys Licences (rics.org)
When you are moving home, there are some additional costs that wouldn’t have affected you in your first purchase transaction.
Stamp Duty
As of October 2022 the Stamp duty land tax rules changed. Stamp Duty is a land tax that is due when purchasing a property or land over a certain price.
Your solicitor will make you aware of what the Stamp Duty tax liability will be as this can differ depending on your circumstances.
Legal Fees
When buying and selling your property there are lots of legalities involved. These will need to be taken care of by a professional, and they are typically referred to as a conveyancer.
Estate Agent Fees
As you are selling your property, should you wish to use an Estate Agent to complete this transaction, you will also need to budget their fees. Estate Agents typically charge their fee based on the sale price of your property but make sure you thoroughly read your contract and you understand any caveats before signing.
Mortgage Fees
Depending on your mortgage situation there could be potential costs involved, certain lenders require mortgage exit fees, or possible early repayment penalties maybe due should you break free from a deal before your anticipated end date. Any costs like this will be disclosed during your initial appointment, so they don’t come as a surprise.
Based on your mortgage option, there maybe some set up fees involved. Subject to the chosen lender, you may find there are property valuation fees involved or mortgage product fees.
Other Fees
You may feel you want a more in-depth detailed report on the property you are purchasing therefore you may pay for a RICS survey.
Nowadays, taking your mortgage with you is easier than before! Most mortgages are portable, which means you can move your existing mortgage from your current home to your new home. You are still required to go through the application process to apply for your loan, and you may have to increase the size of the mortgage to cover the cost of your new property if it’s more expensive than your current home. Should you need to increase your borrowing, this will be separate from your existing mortgage however, all this will be thoroughly explained by our expert team as this option may not work for everyone!
Ready for a fresh start? Switching to a new mortgage lender maybe be the best option based on your current circumstances. In order to fully assess your current mortgage situation, we must also consider the possibility that leaving early could come with a cost. Before you move forward, we will need to look at any additional expenses associated with moving your mortgage. Our team of advisors are here to help provide the best outcome for you and your home move.