It is widely known that moving house is one of the most stressful things that you can do. And if you are a first-time seller who has never sold a property before, the entire process can feel overwhelming.
With so much to think about, from selling your current property to purchasing your new home, it can be easy to fall into ‘panic’ mode. If you have an emotional attachment to the property, it can feel even more confusing to know what you need to do, and what to expect when moving day finally comes.
At Mortgagemove, our knowledgeable mortgage brokers can talk you through the process step-by-step. We can explain what will happen to your mortgage, give you an idea of how much buying and selling could cost you, and we can even give you our recommendations as to whether now is the right time for you to consider moving.
All you have to do to find out more, is pick up your phone and call us direct on 0333 005 0333.
But if you’re not ready to speak to one of our dedicated mortgage brokers, why not read our handy guide to first-time sellers?
Is selling the right option for you?
Are you thinking of moving because you want to move to a new location? Or do you simply need something that will give you additional living space? Buying and selling is an expensive business. You may find that installing an extension or converting a garage or loft could be a far more affordable option, as well as adding value to your property.
If you are looking to extend your property, but you need funding to do so, why not speak to a member of our mortgage team? Our experienced brokers can discuss the various remortgaging options that are available. We can confirm if you can increase your mortgage term to release funds to pay for an extension with minimal impact on your monthly outgoings.
Can you afford to move house?
Have you considered the costs that are involved in moving house? You may be surprised to realise how expensive it can be to sell your property and buy something new. There are many different fees to consider, from conveyancing to stamp duty and estate agent fees. Even hiring a van to move your belongings can add to the costs.
Costs you may need to account for include:
- EPC certificate. This is the energy rating for your property, and it is a legal requirement for selling your home. These certificates can last up to 10 years.
- Estate agent fees. Whether you choose an online estate agent, a local agent, or a national chain, you will typically pay them an agreed percentage of the sale.
- Conveyancing solicitor fees. You will need to instruct a qualified conveyancing solicitor who will ensure that you have covered all the legal requirements. As well as charging for their time and expertise, solicitor fees will likely include the following:
- Title deeds – This is the proof you own the property, and the information is typically held by the Land Registry.
- Property fraud fee – This will protect your property from being sold or mortgaged fraudulently.
- Money-laundering checks are vital to ensure that the buyers are who they say they are.
- Searches – You need your searches to check whether there are any local plans for development or problems.
- Bank or telegraphic transfer (CHAPS) enables the mortgage funds to be transferred to your bank.
- Transferring ownership – Once you have completed the sale, you must transfer the ownership documents to the Land Registry.
- Stamp Duty. If your home exceeds the stamp duty threshold, you will need to pay the Stamp Duty Land Tax
- Surveys. Typically, buyers choose between a condition report, a homebuyer’s report, or a building survey. Some mortgage lenders may only lend following an investigation from a structural engineer, so it’s important to factor this into your planning.
- Removals. You could choose to hire a van and manage the move yourself (along with the help of family or friends. Or you could hire a professional moving team to do all the hard work for you. You could even use the professional team to pack all of your belongings for you – not only is it a huge stress saver, but it’s often far more affordable than you may think.
What happens with your mortgage when moving house?
If your current property is mortgaged, you need to consider how you plan to fund your property purchase. For example, you can take your existing mortgage with you to your home (also known as porting), or you can choose to remortgage with your current lender or move to a different lender.
We recently published an article looking at the different options for home mover mortgages.
It’s important to realise that changing your mortgage mid-term could be costly. You may have to pay exit fees to modify a mortgage deal (unless you are on a standard variable rate). In addition, you may have to pay arrangement fees for your new mortgage deal.
Our Mortgagemove advisers excel in helping our clients understand the mortgage implications. Our team of expert brokers can confirm if you can port your existing mortgage to a new property or identify if there are any fees that you may need to pay to facilitate your move.
To find out more about how we can support your through your proposed house move, please phone our mortgage helpline on 0333 0050333.
At Mortgagemove, our mortgage advisers make the entire process much easier
We start by looking at your current mortgage deal to explain how much it could cost you to switch to a new mortgage loan. Then, we can check your affordability and confirm how much you can afford to spend on a new property, taking your monthly repayments and lifestyle into consideration. Finally, we can confirm any fees payable, and we can give you confidence that you can afford your dream home.
Once you have passed the affordability criteria, we can search the market to find the right mortgage loan for you. Then, when we find the right deal for you, we can manage the mortgage application on your behalf.
We can also factor in insurance options for you. For example, if you own your own home, you should be protected if the worst happens. Would you be able to cope with your mortgage repayments if you or a family member were critically ill (or worse?)? Our experienced team of advisers can identify the most suitable critical illness and life insurance policies that will protect you in the most challenging circumstances.
What happens with the funds on completion day?
If you are a first-time seller, you may wonder what happens regarding deposits, especially if your deposit for your new home is the equity you’ve built up in your current property.
Typically, when an exchange occurs, the deposit will come from the person at the bottom of the chain.
Let’s imagine that you have three people in your chain.
The buyer’s solicitor will send your solicitor proof of the deposit.
Rather than ask you for your deposit money (which is likely tied up in the equity of your home), your solicitor will use that same money that they have received to give to your vendors’ solicitors for the property that you are buying.
On completion day, the mortgage company for the buyers at the bottom of the chain will release funds first. When your solicitor has received the money, they can verify that the sale of your home has completed. At this point, you will be expected to immediately vacate the property and hand over the keys to the new owner.
Your conveyancer will then transfer your money to your vendor’s solicitor to purchase your new home. When they have confirmed that they have received the funds, you can pick up the keys and enter your new home.
There may be several hours between completing the sale of your previous home and completing the purchase of your new home.
How do you pay stamp duty, conveyancing fees, and estate agency fees?
Our expert mortgage brokers will find the right mortgage loan that meets your lifestyle. Many of our clients choose to take a higher loan value to cover the costs of stamp duty, conveyancing fees, and estate agent costs. This means that you do not have to use all of your savings upfront.
The entire loan value will be sent to your conveyancing solicitor. Your solicitor will use that money to cover their own fees for processing the sale of your previous home and the purchase of your new home. They will pay the stamp duty on your behalf and make a payment to your estate agent to pay their fees. You may find a slight discrepancy, and you could discover that you have money owed to you by your conveyancer!
If you are using your savings to pay for stamp duty and various fees, your solicitor may require you to send them a bank transfer of funds to pay for everything prior to completion day.
To find out how our team can make your home move as easy as possible, please phone our mortgage helpline on 0333 005 0333. In just 15-minutes, we can evaluate your financial circumstances and help you find the right mortgage option for your needs. Alternatively, please text ADVICE to 82228.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Approved by the Openwork Partnership – 30/01/2023
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