Even in the most favourable markets, there can be challenges.
Moving home is a complex process, whether you are moving because of a relocation, reorganisation of your family, upsizing, or downsizing.
What is your equity?
First, you need to understand how much equity you have on your property. Speak with a reputable estate agent who can assist you in setting a price that is appropriate. They can also assist with the marketing of your property and negotiating offers. For Gloucester Estate Agents, contact https://www.tgres.co.uk/
If you’re buying at a higher cost, a 5% drop in the sale price could lead to a reduction of 5% in the purchase price.
What amount can you borrow?
Second, you should assess your financial situation and consult your mortgage advisor to determine your maximum mortgage capacity. Also, ensure that your monthly expenses are comfortable.
You will want to review your mortgage and any fees or penalties associated with an early repayment.
Your mortgage advisor should be able to check the details of your mortgage and provide advice on possible options for avoiding the penalties for early repayment.
Lenders’ affordability models have been changing in recent years, with some imposing stricter affordability assessments.
You may have also changed your personal circumstances since you created the current product. Your current lender may not be able to use your new income if you changed your employment type or salary structure.
If you decide to port your mortgage and can raise the amount of the loan to meet your needs, there are some implications you should consider.
You can usually keep your current interest rate for the outstanding balance, but you will have to take out any additional loans on a different product. Most products have a specific expiration date and some charge for early repayment.
You may have two products with the lender, but the interest rates on one of them expire sooner. You may be faced with an early repayment fee in these cases.
What are the additional costs you should consider?
When evaluating your financial situation, consider costs related to a sale or purchase. These include legal fees, agency costs, survey costs, moving costs, and stamp duty.
You can determine your budget and realistic range of prices for a new home once you know the amount of equity you have available plus the mortgage limit.