Top ten questions about moving home answered
Shirley Mushet, an Independent Mortgage Adviser at ESPC Mortgages, and Rosanne Ogden, Partner at RD Legal, answer your most common questions about moving home to help you feel at ease when starting the process.
Would you recommend porting your mortgage or waiting until the end of a fixed-rate term to move?
Porting is the process of staying with your existing lender and moving your current product to your new property. The upside of this is that there is the potential to save your early repayment charge. However, if you are increasing your borrowing you will have to select a new product, and this can leave your mortgage inflexible going forward.
For instance, if you have a five-year fixed product and you are two years into the mortgage with three years remaining, your existing lender may only offer you a prop-up product for your extra borrowing which could be a two-year product or a five-year product. This potentially leaves you in a position where you have two parts of your product with two different end dates and repayment charges on them. If you wait until the end of your fixed rate term it can certainly make your mortgage easier to manage going forward rather than having to constantly review your mortgage product at the different end dates.
Get in touch with ESPC Mortgages to discuss your options.
How easy is it to borrow more from a lender if you’re upsizing?
If you’re looking for more from your existing lender on top of what you currently have outstanding, you need to meet the lender’s affordability. A mortgage adviser can help you assess your affordability, income and outgoings to give you a potential maximum loan amount.
There is a common myth that lenders will just move the mortgage over to your new property but this is not the case. It is subject to the lender’s current criteria which may have moved on since you took your mortgage out.
Remember that the lender assesses you as well as the property – your existing lender may not accept a property that has non-standard construction, for example.
Do you have any tips to help me sell my house as quickly as possible?
If you would like to sell quickly, try to make sure there is nothing that may put someone off from making an offer. Declutter your property, carry out any DIY jobs you have, clean out your gutters, cut your grass, make sure it’s market ready.
Put yourself in the buyer’s shoes. Do you have any negative comments about a particular room? If so, consider fixing it before putting the property on the market.
What documents do I need to sell my house?
The key document you need to get your house on the market is a Home Report. The Home Report has three different parts: a survey valuation carried out by a surveyor, an Energy Performance Certificate and a homeowner questionnaire.
You might want to look at paperwork if you have carried out alterations – if you have done an extension or knocked down any walls make sure you have a planning permission completion certificate which will be required by the purchaser.
For a mortgage application, you should have your details as up-to-date as possible – ID (which could be a passport or driving license) should have the correct address, if you’re employed you will need three months of wage slips and three months of full bank statements, your latest P60 and proof of deposit.
How long will it take to sell my house?
Your house will take around a week to be put on the market. In terms of selling, you might get an offer within a couple of days after it has been put on the market. Alternatively, it could take months or weeks – it depends on the location, size and condition of your property.
The average time is about 28 days from getting your offer in.
Do you have any advice for non-co-habiting couples who individually own their own flats but would like to sell both and buy new homes together?
Make sure both properties are sold before you buy your new property which will avoid any complications with Additional Dwelling Supplement – tax you pay on having a second home.
You could also consider putting a Minute of Agreement in place to regulate the contribution you’re making to your onward purchase. Most solicitors, when they are acting for your purchase, can do this for you.
You should also review your existing will or consider putting one in place if you don’t have one already.
Is it easier to apply for a mortgage as a single person or do couples have better chances?
From a mortgage point of view, a double income helps towards affordability. If one party doesn’t have income and is reliant on the other, that can have an impact on affordability but generally speaking, if you have a double income it helps.
How much does it cost to get your house valued?
Solicitor estate agents don’t charge to value your house but if you want to have your Home Report carried out there is a charge from the surveyor.
How much does it cost to sell your property?
It depends on the property itself. It could be around £800-£2000, as well as legal fees.
What should I be doing before a surveyor assesses the property?
Have your property ready and make it look as presentable as possible – first impressions matter.
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The information contained in this article is provided in good faith. Whilst every care has been taken in the preparation of the information, no responsibility is accepted for any errors which, despite our precautions, it may contain.
The initial consultation with an adviser is free and without obligation. Thereafter, ESPC Mortgages charges for mortgage advice are usually £350 (£295 for first time buyers). YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOANS SECURED AGAINST IT.