“Moving house can be even more stressful than buying for the first time; there’s so much more to juggle. Whilst arranging finances for the new home, I aim to help home-movers understand the best way forward and support them through the whole process.“
Mortgages for home movers
Are you what is known as a 'second stepper' looking to climb the housing ladder? Maybe you're a third, fourth or fifth 'stepper'. If you're looking to use increased equity in your home to move up the property ladder, the rules around mortgage products may have changed since you first or last bought a property. The rules changed in 2014 requiring more thorough qualification of borrowers' affordability status.
Is your deposit enough?
It's no longer enough to meet a lender's minimum deposit requirements or even to have a really healthy deposit for the price of house you're looking to purchase. The laws around lending now assess your immediate and future affordability, i.e. how likely you will be over time to afford your mortgage repayments.
Lenders now look at your affordability in three ways: your income, your outgoings, your capacity to if either of those change. It considers changes such as being made redundant and having a baby.
Peppermint is well placed to help you through these assessments to find the most feasible mortgage for your needs.
How to plan for house buying and selling
In addition to affordability, selling and buying at the same time can be very stressful. Not everything in this house moving experience is within your control, but you can prepare for the shifts and hiccoughs that may occur. Proper planning can help prevent disappointment.
- It's important to understand the total costs involved in climbing the ladder because this could affect what you're able to afford
- You need to know there are suitable properties to buy before it's worth selling
- You could lose out on a property you've set your heart on to a more 'proceedable' buyer before you're able to sell
Peppermint can help you establish what you can afford and what costs you're likely to incur as part of buying and selling a house.