Mortgages for Home Movers with No Broker Fee To Pay

So, you’ve decided it’s time to up sticks and move home. Assuming the move is to ‘trade up’, ie purchase something bigger or more expensive, the key determinants will be:

1. What is my current property worth?
2. What is my equity or deposit after selling?
3. What can I buy up to in price? (max loan obtainable + equity)
4. What is the new monthly cost – is it affordable?

  Determining the determinants

• Traditionally, get three Estate Agent valuation assessments and average them. Recently historical house prices for your post code area can be obtained on internet reference sites such as: http://www.housepricemaps.co.uk/ and http://www.nethouseprices.com/index.php
  
  You are now departing from the regulatory site of Mortgage of Choice.
  Neither Mortgage of Choice nor Home of Choice Ltd is responsible for
  the accuracy of the information contained within the linked site.
  
  
  
• Having determined a realistic sale price, you have to deduct your outstanding mortgage balance, legal fees including Stamp Duty Land Tax , estate agency fees and any removal costs. The remaining balance is equity to carry forward.
  
  If you have access to the Mortgage Offer document for your current mortgage this will confirm how much you borrowed; the interest rate for fixed products; the tracking or discount margin for variable products; the % amount of any Early Repayment Charge (ERC) and the date ERC is charged to; whether the mortgage is portable.

Your current lender can provide you with all the mortgage information along with a redemption balancewhich would include any ERC and admin fee to redeem the mortgage. It is important to know if your current mortgage product is portable, i.e. you can carry forward the interest rate and terms / conditions of your current mortgage balance and thus avoid paying any ERC. Note that any additional borrowing required would be on a new rate of interest as specified by your lender.

Now would be a good time to get in touch with Mortgage of Choice - there are a number of points that need to be considered in deciding whether to ‘port’ or take out a completely new mortgage. You need to see both sides of the fence to make an informed decision.

We will guide you through 3. What can I buy up to in price?Lenders vary in how they determine a maximum loan amount, some using income multiples while others use affordability calculators. The lender’s treatment of overtime, bonuses, commission payments, maintenance and state benefits can have a significant impact on the amount of loan that is offered.

Whilst providing you with an accurate guide to the maximum loan obtainable we always stress the importance of 4.What is the new monthly cost – is it affordable?

We can assist by providing a permutation of different loan amounts / term of years / product rates to determine a solution that works best for you. All recommendations are backed up with a Key Facts Illustration. Please see Step by Step which shows how we can help you through the home moving process.

The Office of Fair Trading provides an in depth budget planner leaflet which can be printed off via the following link:

http://www.connexions.gov.uk/partnerships/documents/Budget_Leaflet.pdf

You are now departing from the regulatory site of Mortgage of Choice.
Neither Mortgage of Choice nor Home of Choice Ltd is responsible for the accuracy of the information contained within the linked site.

Mortgage products for home movers
There are literally thousands of different mortgage products available to home movers, all with differing terms and conditions and some carrying special incentives like a free basic valuation or a contribution towards legal costs on completion. This is where the mortgage review we carry out with each customer is vitally important in determining key priorities and needs that must be addressed. The prime objective must be to recommend the mortgage that best serves individual needs and circumstances, with perks like a free valuation acting as icing on the cake.
As products can change rapidly, particularly in times of rising interest rates, we recommend getting in touch and we can quickly determine your personal home move scenario.
If you have sold your current property we can move quickly to secure the right mortgage, whilst if it’s very early days you initially need to know 1 to 4 – is a move viable and affordable.

Please also refer to

Types of Mortgage Product
Methods of Repayment

New build properties
This is a home move scenario where certain conditions / features generic to new build have an impact on choice of mortgage product and lender:

• Builder’s 28 Day Exchange of Contract – Mortgage Offer must be in place
• Completion may occur much later – ‘valid to’ date of Mortgage Offer?
• Lender limits on Builder’s Deposit / Incentives
• Lender's valuation differs from Builder's - the builder offers 5% Deposit Paid but the lender may only value the property at the net price and lend 95% of that.

Purchasing a brand new, modern home is always an attractive proposition but it is important to be fully aware of all the conditions of new build, particularly when this involves payment of non refundable deposits and valuation fees.

CAN WE HELP TO GET YOU MOVED WITH THE RIGHT MORTGAGE?

0800 988 1889  enquiries@mortgageofchoice.co.ukEnquiry Form