There are many advantages of looking to move home. You may be looking to get on that next rung of the ladder, or you may be looking to the future and choosing school catchment areas. There is nothing quite like the feeling of changing location and property and all with the hindsight and knowledge you gained from buying a property previously. Sometimes as a first-time buyer, it is all about compromise, having now owned a property you know what works for you and what doesn’t so you can focus on finding your perfect home. It may have been some time since you have had to think about your mortgage and there are a few things when you are considering moving home.
Just as when you bought your first home, you will need a deposit. Most likely this won’t come solely from your savings like the first time you bought a property. The great news is the home you currently own hopefully has equity in it. Equity when moving home is typically accessed when you sell your current home and pay off your mortgage. The proceeds left after this transaction can make up your deposit. Sometimes however home prices fall, if that happens, there is a risk of ‘negative equity’ where your home becomes worth less than the mortgage you have on it.
This can be especially of concern if you are looking to use equity as the main basis of your deposit. When planning at this stage, the best thing to do is get an Estate Agent around to see how much your property may sell for and discuss any Estate Agency fees that you would need to take into consideration.
Some people choose not to sell their home when moving. It may be possible to keep your current home and potentially release some equity for your new home’s deposit. This could mean that your current home, if affordability allows, could simply become a second home for you and your family, or become a buy-to-let for someone else to live in – See our Buy To Let page for more advice on this option.
It can seem complicated to coordinate buying and selling, this is a very common concern among anybody looking to move home who currently has one to sell and a mortgage also. Rest assured it is very common to sell a property and buy a property simultaneously in the UK. Having the right professionals working for you through the transaction will put your mind at ease and ensure things go smoothly.
Everything you need to know about the home moving process in one place.
There are a number of documents your adviser will ask for to progress your mortgage enquiry. This guide lets you know what documents to look our and why we ask you for them.
“Moving home can be quite a daunting task but it’s often an exciting time and a change in home or location can be extremely beneficial for your lifestyle and peace of mind. Changing factors in your family, employment, financial situation or life goals can mean relocating is your best option. Whatever your reason for moving home we are here to help. CARA Mortgage Services have helped thousands of clients move home by arranging new mortgages or transferring existing mortgage deals to new properties. No two property moves are the same and with so many different mortgage providers on the market, it's important that you get the right advice. We can’t promise to help you pack the boxes, but our award winning team can help take the stress out of moving home by arranging your finances and putting together a bespoke financial solution that’s tailored specifically to you.”