If you thought that your financial worries would end once you got on the property ladder you may be disappointed to learn there are still issues to deal with when you move home. If you are planning to move to a new property, find out how to effortlessly finance the move by investigating your mortgage options and finding out about how to transfer or change your mortgage deal.
1. Chat to Your Current Mortgage Lender
The first step when looking at how you will finance and carry out a house move is to talk to the lender currently putting up the loan for your property. It is worth finding out your options in terms of transferring the mortgage before you start looking for a new place to live. Sometimes the transfer will have a cost and it is useful to find this out.
2. Work Out Your Borrowing Needs
Many people upgrade when moving home, to a bigger or a better property. Work out how much money you will need to borrow in order to finance this upgrade, and how you can borrow this money. Additional finance will be granted under certain eligibility and affordability checks, and you should find out what you can afford to borrow. You have the option to borrow from your existing lender or a new provider.
3. Consider Remortgaging
The point at which you decide to buy a new property could be the ideal time to review the current mortgage deal you have and look at remortgaging. According to flagstone.co.uk, you should look at not just the headline rate of interest but the cost of the mortgage over the full term of the loan compared to your current deal. And remember to add in the extra charges associated with remortgaging such as arrangement fees and exit fees.
4. Complete the Application Process
You don’t need to go for the same kind of mortgage as the loan you got when you bought your first property. The application process for a new mortgage may be similar but you can choose to end up with a different product, for example a tracker mortgage. You will need to go through a valuation process and a survey if you are remortgaging to buy new property. There is also the requirement for a credit check and an income-based check.
5. Get Independent Advice
If you want to know how much you can borrow to finance your purchase, or whether your existing mortgage represents a good deal in today’s market, get some independent advice to plan your finances. With the range of mortgage deals on offer, it helps to have a mortgage professional look through the options and advise which would be best for your individual needs, which may be very different from the first time you bought property. Moving home can be an exciting time, and the right advice helps the process go much more smoothly.