Moving home – or buying your first property – can be a really exciting time, but it can also seem a bit overwhelming, even if it’s not your first rodeo in the property market.
According to the lifestyle magazine House Beautiful, studies published last year suggest the average person in the UK moves house once every 23 years, which equates to between 3 and 4 times in a lifetime.
You only have to look back at the last 12 years to see that the process of buying and selling property can change significantly between you moves, and it’s this lack of familiarity with what’s required that can be the source of anxiety when it comes to diving back into the market.
But other than providing the financial information that’s required (you can read our blog on that topic here) really there are only 5 things you need to know when you’re buying somewhere new to live – your budget, the area you’re moving to, the costs involved, the interest rates and range of products available and, of course, the process.
And the good news is that a professional mortgage adviser can help you with at least 4 out of those 5 things (and if they’re local to the location you’re moving to, maybe even all of them).
This is crucial if you’re going to refine your search to ensure you buy something you can afford and for which you’ll be able to get a mortgage.
A mortgage calculator like ours will give you a rough idea of what’s within your financial reach, but arriving at a more accurate figure depends on the lenders under consideration and your own income.
It’s a good idea to talk to a mortgage professional before you start house hunting to get a realistic budget for your new home. Knowing an accurate figure will give you the confidence that you’re likely to be able to secure the loan, and also enable you to identify a strategy for negotiating, based on whether you need to spend money on what you end up buying.
Knowing the area you’re looking in makes a lot of sense. If you have children, you’ll want to consider the quality of local schools. Is the property close to transport links you might need for work? What about local amenities like parks, shops and restaurants?
Visit the area on different days and at different times of the day to get a feel for potential upsides and downsides. Is your dream house on a busy road? Is it quiet at the weekends? Are there people around during the day?
Understanding the best and worst of the area will also give you an insight into whether the house is worth the asking price – and, crucially, whether it’s going to be an attractive proposition should you want to sell in the years ahead.
For lots of people, the formula in their heads goes something like: Cost of New House minus Equity in Current House = Mortgage Required.
What they forget, of course, is that selling and buying property isn’t cheap.
Stamp duty, legal fees, surveys and removal costs all add up and if you’re buying at around, say, the £600,000 mark, it’s not unrealistic to expect to have shelled out around £30,000 before you’ve even picked up the keys to your new home.
Again, a professional mortgage adviser will build the costs of moving into your mortgage requirement and advise you on the best mortgage strategy, depending on whether you need a bit of extra money to carry out work that’s needed or for additional expenses.
Products & Rates
This is where a dedicated mortgage broker comes into their own.
At Oportfolio, we work with a wide range of lenders to ensure we can offer our clients the best possible product that’s suited to their specific and unique needs.
And because we’re specialists, we have access to products and rates you probably won’t find on the High Street or on a price comparison website.
Different products will attract different rates of interest, but the lowest rate isn’t necessarily always the best rate for you because of the fees, limitations and tie-ins that can be involved.
A rate might look really attractive when you see the monthly repayment figure. But maybe that product won’t allow you to overpay the mortgage as you might wish, or perhaps it has a prohibitive exit fee attached to it.
All of these things need to be considered when you’re looking to finance a loan as large as a mortgage, and a professional adviser is the right person to do that for you to ensure you’re getting the mortgage that suits your circumstances.
Buying and selling property is actually relatively straightforward, but it can be slow and frustrating at times.
At Oportfolio, we’re here to take all of the stress of the mortgage application away from you, and to support you on your journey.
We can also give you valuable insight into when you need to engage surveyors and solicitors and what it’s reasonable to expect from them in terms of service and turnaround times on key steps, like the legal searches that are required.
In any property transaction, it’s always better to walk into the process fully prepared and with as much knowledge as you can gain – and your mortgage broker should be a key part of helping you to make the journey into your new home as easy as possible.
If you’d like to know more about our award-winning mortgage service, why not get in touch and talk to a member of our friendly team.
Oportfolio Limited is an appointed representative of Primis Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct Authority
Your property may be repossessed if you do not keep up repayments on your mortgage.
Oportfolio Ltd fees are payable on application. We charge a broker fee for property purchases of £495 and a remortgage/further advance fee of £395. Our product transfer fee is £295.
by Oliver Whitehead - 18 March 2020