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Moving Home

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Moving Home


Making your next move on the property ladder is an exciting time and no less stressful than when you purchased your first home.

This might be your first time moving home since your first purchase. You might have purchased many years ago and completely forgotten how the process works, or you are fixed into a deal with your existing lender and want to take that mortgage with you to the new property and raise extra funds to top up and make the completion possible. There is so much for you to be thinking about and lots of different moving parts which all need to be working in sync to get to the end result which is the day you collect the keys to your new home.

These include but are not limited to: Solicitors, estate agents, your new mortgage, vendors, removal companies, home insurance, life insurance, chasing emails, making endless phone calls, collating the correct documents and so on…… I’m sure just reading that list was tiring enough! We thought that a helpful guide to the Home moving process would be useful, where we can offer tips, advice and give you a good idea of what to expect.

Understanding you Mortgage Options. What can you borrow


This is the first thing you ought to consider before getting estate agents in and putting your property on the market. As with your first ever purchase you need to fully understand what your borrowing power is before making the big decision to sell. Most importantly, are you plans to move even possible?

  • It’s advised that you are aware of what you can borrow to make the next move up the ladder. There are several things that need to be taken into account when assessing the maximum new mortgage amount. What equity will be left over once you have sold your existing property and all associated fees have been deducted? This will form all, or part of the deposit for the new property. Your income, your monthly credit commitments, childcare costs, your age, other commitments which are considered with the mortgage lenders.

  • Are you currently tied into a deal with your existing mortgage where there are ERC’s (Early Repayment Charges) applicable. If so, what are these fees, how long are they relevant for, how much are they.

  • Can you port your existing mortgage over to the new property?

  • Are you free to explore the market and get a new mortgage entirely with a different lender.

  • Get a mortgage Agreed in Principle.

We have more details that explain everything mentioned above further on this page.

Preparing your property to sell


Most people would be selling a property to purchase a new one. This isn’t always the case but the below will explain what you’ll need to consider when preparing to sell your property.

  • Contact a few local estate agents and get them to give an idea of how much you can possibly market the property for. We suggest speaking to more than one local agent so you can get a feel for them, how they work, what their fees are, the service and support they offer. Having an estate agent who is proactive is key to selling your home. Agents charge a percentage of the sale price Plus VAT. This is usually around 1.5% but can be higher or lower depending on the agent. Don’t be shy to haggle a little on the fee.

  • You don’t have to use an estate agent. There are online estate agents and property advertising, but bear in mind you might have arrange viewings yourself and possibly pay fees upfront regardless of whether you sell or not.

  • Give your property a little ‘Glow Up’. This doesn’t necessarily mean decorating, but completing any previously abandoned DIY jobs, de-cluttering, a spring clean, tidying any outside spaces by mowing the lawn, tidying flowerbeds. If there are any big projects, you might want to tackle these. Remember you want to present your property in the best possible way which can help you achieve your asking price. Ask your chosen estate agent what they feel would help.

  • Whether you decide to use an Estate Agent or D.I.Y, it’s time to get your property on the market for potential buyers to see.

Instruct a solicitor for your sale and purchase


Having a solicitor in place as you go onto the market is key. They will want you to complete lots of forms which pertain to the sale of the property. Get these completed as soon as possible so they have everything they need in time for when you accept an offer on your property.

  • If you had a good experience with your solicitor when you purchased your existing property, contact them for a quote for the new sale and purchase. If you were happy with the service you received why risk going elsewhere!

  • If not, then contact a few solicitors to get some quotes. Maybe speak to your estate agent too and see if they can refer you to someone. It can help if an agent has a good working relationship with a solicitor. BUT remember you are free to choose whoever you want.

  • Prepare your ID for your solicitor. This is generally a recent proof of address and a passport. Each Solicitor will have their own list of what they accept.
 

Accepting an offer on your property


You could get offers on your property within days of going on the market or it might take a bit longer. Either way this is an exciting time. Things you will want to know before accepting an offer from a buyer are:

  • Are they chain free? Are they a First Time Buyer OR do they have a property they need to sell to enable them to buy yours; and have they accepted an offer on their property.

  • If your potential buyer is selling a property, what position are their buyers in? Are they chain free, or do they also have a property sale involved in the process? You want to understand how long the chain is or isn’t.

  • Do they have a mortgage agreed in principle?


Your estate agent, if you choose to use one will what we call ‘Qualify’ any potential buyers for you. The above is what they will ask but just bear the above in mind. Accepting the highest offer isn’t always the best option as they could be a long complex chain, so there are lots to consider when accepting an offer.

Your new property search


This is the exciting bit. If you have accepted an offer on your property and have your mortgage agreed in principle you are in a good position to start looking for a new property. You can start your search before you have accepted an offer on your property of course, BUT if there is another buyer interested who is already under offer on their home or you have a First time Buyer interested then their position is stronger/more proceedable than yours, so your offer might not be accepted until you are under offer. I have seen lots of cases whereby a client hasn’t yet accepted an offer on their property but have had offers accepted for a new property, this could be subject to you going under offer in a certain timeframe (vendor will decide).

  • Use all the online websites for your search area and value.

  • If your max purchase price is let’s say, £500,000, do look for properties priced slightly above that. You never know the perfect property might be there with a vendor willing to accept an offer.

  • Sign up to property alerts. Online sites allow you to sign up to a mailing list which will alert you to new properties within your search criteria being listed.

  • Go on 2nd viewings for properties that really interest you.

  • Ask the sellers questions like… ‘Why are you selling’ – ‘What are the neighbours like’ – ‘What work has been done to the property since you purchased’. If you see anything you’re not quite sure of, ask the question.

  • If you’re looking to purchase a leasehold property pay attention to the lease length. Shorter leases can cause issues with mortgage lenders. What’s the service charge and ground rent?

  • If you’re considering purchasing a property above OR very close by commercial premises, speak to your mortgage advisor. Not all lenders will lend on such properties, and those that do will want to know what type of commercial is below, either side or very close by.

Having an offer accepted on the new property

 

Congratulations. Offer accepted, so you’re one step closer to buying a new home. If you have a mortgage advisor already then, they would have prepared you for what happens next. It’s at this stage you need to get your new mortgage application submitted to the lender, underwritten, valuation instructed and get the mortgage offered. If you do have a mortgage advisor, they will take care of everything for you so you can carry on with life. There is paperwork involved in the same way as with your previous purchase. Being organised early on in the process will be huge help.

  • Contact your mortgage advisor as soon as you have an offer accepted.

  • Be organised and have your documents ready to give to you mortgage advisor. If your mortgage advisor has already prepared you, you’ll be aware of exactly what will be required. Please note that aside from the standard list your advisor will have given you, the lender reserves the right to request other documents they deem necessary to reach a decision.

  • Consider what type of property survey you want carried out. Your mortgage advisor will discuss the options with you.

Mortgage for new purchase

 

As mentioned above in 1 Understanding your mortgage options. What can you Borrow: you might already be tied into a deal with your existing lender meaning there could be Early Repayment Charges (ERC’s), or you could be free to explore the market and redeem your existing mortgage in full completion without an exit fee. It’s important to fully understand your current circumstances, and what your options are because of your situation. It’s advised you speak to a mortgage advisor so you can be sure that the decision you make is the right one for you.

  • If you have an existing mortgage and are tied into a deal/rate which has an Early Repayment Charge (ERC) then you are likely to have the right to port this mortgage to the new property, so you do not pay the ERC. Most mortgages allow existing mortgage customers to port their mortgage. So, the lenders current lending criteria is applied which will also include affordability needing to be met. Porting allows you to apply to the lender to take your existing mortgage balance and rate over to the new property. This means you will avoid paying the ERC. This isn’t a guarantee you will be successful as a ported mortgage is treated in the same way as a new mortgage application, so if there has been a change of circumstances for you or if the new property you wish to buy isn’t acceptable to your lender you might have to reconsider your plans or change lender and redeem the loan in full paying the ERC.

  • When you port your existing mortgage to a new property, often buyers require an additional mortgage amount which we call a ‘Top Up’ amount to complete on their new purchase. So long as you can afford the full loan amount required (including the existing balance) you will be able to apply. Example: you might have an existing balance of £200,000 with your existing lender on a rate of 3%. You might need a total new loan of £250,000 to enable you to complete on the new property. Porting will allow you to move the existing £200,000 on a rate of 3%, and then the additional £50,000 will be on another rate. The rate offered will be based on things like the overall Loan to Value (LTV) and so on but It’s important to note that you have little choice in rates due to being tied to your lender so you are subject to whatever rates they have available at the time you apply. Whilst porting is a great at giving you flexibility to move home and not pay the ERC, it can result in you having 2 different mortgage amounts on 2 different rates and end dates. This is very common practice so don’t be put off as Early Repayment Charges can be huge, so it can make sense to port your existing mortgage. Your mortgage advisor will be fluent in porting mortgages, so it’s advised you speak to someone as this isn’t as straight forward as getting a new mortgage entirely. Trying the DIY approach on a case like this could mean you don’t get the best deal for you.

  • If you do have an existing mortgage and an Early Repayment Charge, it could make sense to switch lender and redeem the existing mortgage in full in some cases. Speaking to your mortgage advisor will make things clear on what the best course of action is for you and your personal circumstances.

  • Taking an entirely new mortgage. This could be with your current lender or a new lender and is the same process as it was when you purchased your first property.


Whether you’re on your first move up the ladder or a seasoned pro at buying and selling mortgages are no less stressful and in a market which is evolving all the time it’s important you get the best deal for you and your own personal situation. Speaking to a mortgage advisor can save you stress, time whilst ensuring you’re not paying more than you could be for your mortgage.

Moving costs to be considered and budgeted for


Moving home isn’t cheap so we suggest to our clients to get ahead of the game and create a Budget Planner where you can put all associated costs in and manage things all in one place.

  • Estate agents fee if you opt to use one. These can be anything from 1% plus VOT upwards. Negotiate with your agent before signing a contract.

  • Solicitor’s fees. These can vary a lot. Anything from £1200 upwards depending on the type of property and if there are non-standard things that need to be done.

  • Removal costs. Get several quotes.

  • Mortgage Advisor Admin fee. We charge a flat fee of £290, which is only payable when you have found a property. We would be in contact ahead of you having an offer accepted and will have done all our checks here and provided you with an Agreement in Principle ahead of time, but our fee is only charged once you have found a property and had an offer accepted. We refund this fee if we are unable to secure a mortgage offer you.

  • Mortgage Lenders fee/s. Your mortgage advisor will be able to explain all associated fees with you. your typical mortgage arrangement fee is £999. You can pay this on application or add this fee to the loan amount in most cases, but please note by adding the fee you will incur interest on the fee amount.

  • Mortgage valuation fee. Most lenders now offer a free mortgage valuation. Some charge a small fee and some charge a fee based on the value of the property.

  • Property Survey fees. If you are considering a Homebuyers Report or a full structural you will need to factor this cost in.

  • SDLT – Stamp Duty. There are lots of online calculators which can give you an idea of what to expect.

  • Removal boxes, Bubble wrap and so on.

Managing the Sales and Process


This can often cause the most stress during the process. There are many parts to a sale and purchase or just even a purchase alone. If you’re in a chain, then the stress levels can escalate to code red at times. A property chain happens when there are several properties involved. Each part of the chain must be on course and at the same or similar stage for things to progress.

Don’t be afraid to chase people. It can be a worry when you don’t hear from your solicitor at times, but chances are they are waiting for something from the seller or buyer’s solicitor. You have the right to chase. Speak to your estate agents.

We at Maytree Mortgages often get involved when a client wants to get things moving. We support our clients not only with their mortgage application but also during the process. We are here to speak to agents or solicitors and ask the questions that you want answered. We also help our clients understand what to expect at each stage of the process. We are here to ensure that you are supported throughout the entire process from start to finish.

 

We hope you have found this page useful. Remember moving home isn’t a one size fits all as each home mover comes with their own personal situation, but the above covers standard things that you need to consider.

If you feel you could benefit from the services and support, we offer please do feel free to contact us for a no obligation chat.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.