Moving Home Advice
Moving home is exciting and stressful, in equal measures! As an existing homeowner, you know your likes and dislikes in a property and will have certain requirements for your next home in terms of location and features. Unlike your first purchase, you now need to buy and sell at the same time so knowing the size of your budget, and being poised to apply for a mortgage, will make it easier to pinpoint your search and hopefully speed up the process.
Reeds Financial can wade through the myriad of moving home mortgages for you, eliminating a huge stress from your process. Although you already have a mortgage, you don’t need to stay with the same lender. We have access to the whole of market so can locate the best deal specifically for your needs. Our professional advisers will work with you to find the most appropriate mortgage, and help you plan your future finances.
Let Reeds Financial take care of the buying process so you can focus on planning for your new home.
Got a Question?
We got answers
Our friendly advisors are always happy to help with your mortgage enquiries, so call us for a no-obligation chat.
Speak to one of our friendly mortgage consultants now on 0203 835 6263.
Do I need a deposit when moving?
You need a deposit when you move home whether you’re taking out a new mortgage on the new property or porting your existing mortgage. You put down a cash deposit at the exchange of contracts. If your deposit is coming from the sale of your current property, it will be transferred at completion.
I already have a mortgage so what happens to it when I move?
You can either keep the mortgage you have – if your new property is more expensive than your existing home, you will need to add to your mortgage, and your lender will need to value the new one to ascertain its worth. Or you can apply for a completely new mortgage, where you may secure a better rate, and your existing loan is paid off when the move is completed. You don’t need to get involved in that, the lender takes care of that side of things.
What costs are involved in a moving home mortgage?
There is no doubt that moving home can be costly. There are extra costs than you encounter as a first-time buyer or remortgager, because you are likely buying and selling. Plus stamp duty which kicks in at properties over £125,001 (2% of purchase price) and rises incrementally up to properties of £1.5million + (12% of purchase price). As a rough guide, you could be looking at fees somewhere between £3900 - £6300 (excluding stamp duty) so you definitely need to figure these into your costs. We strongly recommend you seek professional advice to gain an understanding of all likely costs before starting the process.
How do I downsize my mortgage?
You can sometimes downsize your mortgage when you move home if you take out a mortgage for a property that’s worth less than your current property. It’s important to note that any ERCs (early repayment charges) on your existing mortgage will still be charged on the amount of your existing mortgage that you repay whilst downsizing.
What happens if I can’t sell my existing property?
The ideal scenario for a home mover is to buy and sell at the same time. But it isn’t always possible. Your options then are either to rent out your existing property and use the rent to cover your existing mortgage (you would need to convert that mortgage to a Let-to-Buy mortgage) or apply for a bridging loan, which is a short term loan that bridges the gap between buying and selling. If you wish to continue renting your existing home, and see it as an investment, you would need to switch to a Buy-to-Let mortgage. Your mortgage adviser can go through all these options with you.
We love getting feedback
What our clients have said
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE