You may need to move home for a number of reasons:-
- A growing family
- Relocation due to work commitments
- Downsizing as children leave home
- Provide better affordability as income changes with a cheaper property
Buying a property is probably the biggest purchase you will ever make. Before you make significant inroads into buying a property, ensure you obtain an Agreement in Principle, this is of course still subject to checking your income, and expenditure.
Porting your current mortgage
You may have already got a mortgage on your current property which you may be able to port onto your new property, but this is only if your current mortgage lender will allow you to borrow the amount you need. They do not have to agree to a new mortgage, especially if you fall outside of their lending policy.
What do you need to Budget for?
Whilst assessing your budget you also need to account for other costs involved in buying and selling a property. Typically these are:
- Estate Agent Fees
- Solicitors fees (and disbursements)
- Stamp duty
- Property valuation or survey fee
- Mortgage arrangement fee
Estate Agent Fees
These can vary enormously within towns across the UK. You should compare costs between agents and look at the services the agent is looking to provide.
Solicitors Fees
These again can vary from Solicitor to Solicitor, but will include the cost of the Solicitors time, along with a selection of fees payable, such as Land Registry Fees, Property Searches, Local Searches, and other related fees.
Stamp Duty
This is the tax you pay to the government on property purchases. It is payable on property purchases of £125,000 and over. The rates payable are tiered according to property value.
- Up to £125,000 – Nil
- £125,001 – £250,000 -1%
- £250,000 – £500,000 – 3%
- £500,001 or More – 4%
- £1,000,001 or More -5%
Property Valuations
A basic Report and Valuation is normally organised via the Mortgage Lender, however if you require a more detailed valuation report, such as a Homebuyers or Full Structural Survey you can organise these yourself or there may be a discount for using the lender’s surveyor.
Hoskin Mortgages