MORTGAGE ADVICE for

Home Movers

Moving home is an extremely exciting time, as it’s a whole new chapter of life and an opportunity to design your new living environments however you wish. Whilst thinking about meeting your new neighbours and getting your fingers green in the garden is great fun, there’s also a lot of administration, documentation and questions that come with moving from one house to another.

To keep you in the know and make the process smooth and stress-free, our expert advisors are based right here in Hull and East Yorkshire and on hand to guide you every step of the way.
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Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage.
Mortgage Advice Firm usually charge a fee for mortgage advice. The amount of the fee will depend upon your needs and circumstances. This will be discussed and agreed with you at the earliest opportunity. Typically, our fee is £399.00 and is payable on Mortgage Offer.

Your guide to moving home

We’re sure you have a clear vision of where you want to live and the type of property you’d like to move into. To help you navigate this major change as swiftly and efficiently as possible, we’ve put together the top questions that home movers ask us.

For more advice on mortgages and other aspects of moving home, get in touch with our team of expert advisors today.

common QUESTIONS
Can I afford the property I want?
What happens to my existing mortgage?
I want to buy somewhere bigger – can I borrow more?
Can I retain equity from my current address?
What is stamp duty?

Can I afford the property I want?

We all have a dream home in mind, but does it fit within your budget? It’s very important to understand your lender capacity, as this enables you to identify the types of properties that fit within your price range.

Your lending capacity is determined mainly by your income and expenditure. A large income is of course a good thing and will help you to get a mortgage, although multiple outgoings can also affect your lender capacity. These include car finance, personal loans, credit card balances and other regular expenditure, so it’s essential that you recognise what’s going out as well as what’s coming in.

Don’t worry though, as our expert advisors are here to provide a personalised service and help you to understand your lending capacity.

To get started, make an enquiry and let us know how we can help.

What happens to my existing mortgage?

As a current homeowner, you’ll already have a mortgage in place. Moving to another house means you’ll need a new mortgage, so you’ll be pleased to hear that you can usually transfer your existing borrowing from one property to another.

The transferring of a mortgage is dependent on the features and benefits of your existing mortgage product, which is referred to as portability. Take a look at your current product’s documentation and it should have a section called Mortgage Illustration– normally this information can be found in Point 9 (Flexible Features).

Alternatively, you can close your existing mortgage by applying to a new lender for your borrowing. The most common reason for a homeowner to do this is when another lender offers a more competitive rate of interest. Be careful though, as your existing mortgage product may have an Early Repayment Charge in place, which applies when the existing mortgage is closed in full before it’s due to end. This information should be available in your Mortgage Illustration too and is normally in Point 8 (Early Repayment).

As a client of Mortgage Advice Firm, we’ll analyse your current mortgage product and explain any additional options available to you. This ensures that you attain the best deal and move into your new home without any hassle.

To find out more, get in touch with our expert advisors today.

I want to buy somewhere bigger – can I borrow more?

You can borrow more if your income and expenditure support an increase to your borrowing. As such, it’s important to know your lending capacity and understand how it affects the amount you can borrow. If you’re already borrowing up to your limit, the chances of increasing the amount will most likely be very low.

However, your existing mortgage provider may allow you to apply for additional funds to purchase something bigger. If you’re unable to borrow from your existing mortgage provider, alternative options are available, which we can identify and analyse for you.

To find out more, get in touch with our expert advisors today.

Can I retain equity from my current address?

You certainly can retain equity from the sale of your current house. Retaining equity can help with associated costs relating to selling, conveyancing and surveyors, or you can save it for home improvements when you move in or the paying off of unsecured debts.

Understanding Loan to Value is important, so here’s how to calculate it:

  • Loan to Value = amount of mortgage ÷ value of the Property x 100
  • £100,000(value of property) - £10,000 (10% deposit) = £90,000 (amount of mortgage)
  • £90,000(amount of mortgage) ÷ £100,000 (value of property) = 0.90 x 100 = 90% Loan to Value
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Here’s an example to make it even clearer:

  • You have equity of £70,000 within your current property and would like to retain £10,000. This will give you a deposit of £60,000 on your next home.
  • £250,000 (purchase price of new home) - £60,000 (deposit) = £190,000 (amount of mortgage)
  • £190,000 (amount of mortgage) ÷ £250,000 (price price) = 0.76 x 100 = 76% Loan to Value.

In the example above, increasing your deposit from £60,000 to £62,500 equates to an increase from 24%to 25%. Though that doesn’t sound very big, the 1% difference in your deposit could give you access to a lower rate of interest.

To find out more, get in touch with our expert advisors today.

What is stamp duty?

Stamp duty is the tax that’s payable when you purchase a property. If you’ve purchased a property before, stamp duty applies if the new property is more than £125,000. If you’re a first-time buyer, stamp duty is only applicable when the property is priced at £300,000 or over. As for how much you’ll need to pay, it also depends on the value of the property being purchased and where it’s located. Stamp duty can be as low as 2% or as high as 12% of the purchase price, which is a significant range. To get a better idea, this Stamp Duty Land Tax Calculator will help you to work out how much you will owe when moving home.  ‘Please be aware that by clicking onto the above link you are leaving the www.mortgageadvicefirm.co.uk website. Please note that neither Mortgage Advice Firm Ltd nor PRIMIS Mortgage Network are responsible for the accuracy of the information contained within the linked site accessible from this page.’

For tailored advice and guidance, get in touch with our expert advisors today.
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