Revisiting the Mortgage Process
1. Get started
Come in and discuss your new mortgage with an adviser, revise your monthly budgets and gain a Decision in Principle from your chosen lender.
2. Mortgage Offer
Put your home on the market, find a new property that’s suited to you and we’ll help with finding a mortgage offer that meets your needs.
3. Swap Keys
After your surveys take place and we help you get in touch with a solicitor, you’ll be feeling nostalgic and swapping your keys over before you know it.
Moving home in a different way
Moving home, you’ll find, is a very similar process to the first time that you stepped onto the property ladder, except that this time you’ll know exactly what to expect! You’ll also most likely be entering into a ‘chain’, where you have the option to not only look to find a new mortgage in order to buy a property, but you’ll also probably be looking to sell your current property. Here at Southern Mortgages, it’s important to us that you experience the most hassle-free environment surrounding your mortgage, so that you can concentrate on finding the perfect property and getting the right price for your home.
When opportunity knocks…
Find a new mortgage
When looking to move home in Essex, you have the option to use the profit from the sale of your property to pay off your current mortgage and take out a completely new one at a potentially better rate or with more flexible terms that suit you. In this sense, you become a ‘next-time buyer’ and may have the opportunity to better your mortgage deal and lower your monthly payments based on many things, including your rising credit score (assuming you are paying your monthly mortgage payments on time).
With our whole of market access, we will have the ability to shop around for your next deal, making sure it’s fit for purpose and is making the most out of your budget. You are generally encouraged to remortgage every two to five years, so your home move could be the perfect time to evaluate the current interest rates and optimise your outgoings.Close
Fees when moving home
With any luck, the sale of your current property will help pay towards the fees during the process of moving home, with usually only the solicitor searches, your mortgage survey and any relevant early repayment fees demanding upfront costs that you will have to meet. You will also obviously have to take into consideration the general fees included when moving home e.g. removal costs, and it’s important to be ahead of your finances to ensure you don’t come up against any unwanted obstacles.
Along with some applicable fees, you may find that moving home seems to take longer than it did the first time you got a mortgage. Whilst trying to balance selling and buying, give yourself some free time and allow us to give you all the advice you need and we will concentrate on finding the best mortgage for you.Close
Different Types of Mortgages
There are a wide array of mortgage types to choose from, and it can sometimes get a little confusing. Hover/tap on the box to find out more about the different mortgages available.
This is the most common type of mortgage and involves paying off a combination of your loan and the interest you owe each month, repaying the loan off in full by the end of your term (usually 25 to 30 years).
If you’re looking to have lower monthly payments, an interest-only mortgage could be for you. You don’t repay the loan amount that you actually borrowed – only the interest that you owe on it – until the end of your mortgage term.
If you have savings available, an offset mortgage could help you by either lowering your monthly payments, or shortening your mortgage term, depending on what suits your needs.
Cashback mortgages mean that you receive a cash lump sum when you successfully complete your purchase. The lump sum that you receive varies depending on the lender, and you should be aware that this may increase your monthly payments.
If you are looking for stable monthly payments you can fix your payment for a certain period of time (typically 2 or 5 years, but sometimes longer). During this time the interest rate cannot change.
There are a few types of variable rate mortgages, but they all do exactly as it says on the tin – the interest rate can vary during the course of your term.
This is a type of variable rate mortgage,
where the rate “tracks” that of the Bank of England base rate. If the base rate rises, so does your mortgage rate and vice versa.
A discounted rate mortgage gives you a discounted rate for the first period of your term (normally between 2 and 3 years). This discount is deducted from the Standard Variable Rate offered by that lender.
Similar to a tracker mortgage, but it has a ‘cap’ to stop the interest rate going above a certain level. Sometimes they even have a ‘collar’ to stop the interest rate going below a certain level. Not as popular as they once were.
Flexible mortgages allow you to make underpayments, overpayments and even take “payment holidays” during the course of your term, meaning that your mortgage adapts to your financial needs. You could end up paying less overall in interest payments by choosing this type of mortgage.
Lending with big names
Forget the stress! – with access to whole of market, our lender pool is ever growing with household names, at extremely competitive rates. Get in touch today and see which mortgage deal best suits you.
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FAQs for Home Movers
The mortgage process is never straight forward, so don’t worry if you still have some questions to ask. Take a look at our handy FAQ’s, and if you can’t find what you’re looking for, give us a call today.
You wouldn’t be able to fully complete your mortgage process without finding the property that you would like to purchase, as there are surveys etc. that need to take place in order for your mortgage to complete. However, we do advise coming in to see us before you begin searching for your new home, as we may be able to secure you a Decision in Principle that will give you a guide price to consider when house hunting.
As you know, there are many different things in life that don’t turn out exactly how you may have planned them, so it becomes necessary to adapt to your circumstances and be flexible with what life throws at you.
Whether you’re looking to relocate in Essex for a change of career, find a larger property for your growing family, or adjust according to your new financial situation, having an expert broker on board can help you find a new mortgage deal that suits you better than ever before.
Thankfully not. You’ll be eligible for a tax relief called Private Residence Relief as long as you meet all of the criteria. The rules may be different if the property you’re selling is not your own. If you’re not sure whether you will be relieved of tax,give us a call today and see how we can help.
Get your Mortgage
Speak to one of our advisers today and see how we can help you with a stress-free mortgage.
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