Home Buyer-Mover

There are all manner of life events that cause us to consider moving home. For example, you could be:

• Raising a family
• Moving to a new school catchment area
• Changing job
• Downsizing

These situations all mean there is a change in your financial position, so there are points to consider before you make your final plans.

Your existing lender may not offer the best mortgage

Humans can be creatures of habit and if you’ve received a good service from your existing lender then it is logical to go back and see if they can help you. However, the complexities of the mortgage market means deals are constantly launched and withdrawn, so your current lender may not be able to provide the best deal for you in your individual circumstances.

Using a mortgage broker like Simple Home Loans gives you access to a much broader range of mortgages, including specialist mortgages designed for people with complex circumstances. Plus, if you decide to go direct and don’t get your application approved, you may waste waste valuable time contacting another lender and miss out on the property you’ve been looking for.

A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME OR PROPERTY. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

Your insurance and protection requirements will change

Obviously, if you move home you will have new home insurance requirements. But as moving home often ties in with a changing life event, there will probably be other areas of your life that you will previously have considered, but which now require attention. For example, if you’ve recently married and had a child, but don’t have life insurance, you may want to to protect your loved ones.

Alternatively, if you’ve changed your job since you last reviewed your insurances, your new workplace benefits package may not provide the cover you need.

Even if it isn’t a subject you necessarily want to contemplate, it’s important to remember why you’re making these changes and to protect the people that matter most to you.

Simple Home Loans can conduct a full review of your protection arrangements to ensure you have appropriate cover in place to protect you and your family.

How much will it cost?

The main costs you might face when remortgaging are:

Early repayment charges

ERC’s are a penalty for leaving the mortgage before it comes to term, often calculated as a percentage of your loan value. Your lender will be able to advise you on ay ERCs that apply.

Average cost 1-5% of mortgage. So an outstanding balance of £100,000 could incur a charge between £1,000 to £5,000.

Lender’s arrangement fee

The administrative costs of organising you mortgages. This could be a flat fee or a percentage. Your lender will be able to advise of arrangement fees that apply to your mortgage.

Average cost: £0 – £2,000+

Higher lender charge

If the mortgage you are taking out is a sizable percentage of the property value (typically >90%), lenders may add a charge to insure themselves in case you default.

Average cost: 1.5% of the mortgage, so £3,000 on a £200,000 mortgage.

Valuation fees

Cost of hiring a surveyor to assess the property’s condition and value

Average cost: £150 – £1,500 depending on the value of the property.

Legal fees

Cost of hiring a solicitor for the process of preparing the deeds and carrying out the conveyancing process.

Average cost: £500 – £1,500 plus VAT

Booking fees

A one-off application fee for the mortgage, “booking’ or reserving the capital while processing your request.

Average cost: £99 – £250

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