Mortgages for Home Movers

Mortgages for home movers

If you’re looking into moving house in Oldham or the surrounding areas, for whatever reason, then contacting Active Mortgage & Insurance Solutions should be top of your to-do list. We offer fee-free and impartial mortgage advice to anyone who’s been pounding the pavement pricing up their next property purchase. The great thing about our advice and services is that it comes from having access to a huge number of lenders covering most of the mortgage market.

We can advise on the most suitable mortgage products for you and offer help and advice to try to make sense of what can be a very confusing and overwhelming process.

The sort of things we can advise you about and provide answers to are:

  • What price range should you be looking at for your new home and how much can you borrow;
  • How much deposit do you need? Will the equity from the sale of your current home be enough or, if you have got savings, should you use this money to put towards the deposit as well?
  • Could you keep your existing home and let it out? And would this make financial sense, especially bearing in mind the additional stamp duty implications this will usually have.
  • What’s the maximum term that you can arrange the mortgage over and what term is the most suitable based on my current circumstances?
  • What will the monthly payment be?
  • If you are tied-in to a fixed rate deal at the moment with your current lender, will you have to pay an early repayment charge? And is it worth paying that charge and changing lenders or is there a way to avoid it by remaining with your current lender?
  • Is your current insurance protection adequate for your new circumstances when you move house?

Unlike first-time buyers, people who already own their own home will have a range of different reasons for looking to make a move: from needing more (or less) space, moving for work or family reasons, moving due to old age or ill health or even just for a change of scenery. But just like taking out your first mortgage, the range of products on offer can mean you don’t know where to start.

Like with any high-value purchase, we’d always advise you to have a good idea of your financial situation: income, outgoings, loans and other lifestyle factors – and to have a rough idea of how much you think you need to borrow (you can use our mortgage calculator to give you an idea of your monthly mortgage payments). It is always best to also discuss this with us in order to avoid any misunderstandings.

All of these financial factors will have a bearing on the best mortgage product for you. Here are some of the options which could be available to you:

Fixed-rate mortgages
The clue is in the name: these mortgages offer a rate of interest that is fixed for a set period of time. The benefit of this type of mortgage is that you will know exactly what you need to pay each month for the duration of the fixed-rate period, which can make balancing your household budget much easier.

Variable-rate mortgages
This type of mortgage can be tempting, as the rates of interest offered are typically lower than those of a fixed-rate loan. Usually you would find that a lender will specify a standard variable rate (SVR) which is typically a percentage amount above the Bank of England’s base rate. When the base rate is low – as is the case at the moment – then you will find your mortgage repayments lower. However, you should be aware that even small rises in the base rate of interest will cause your repayments to rise.

Offset mortgages
If you’re fortunate enough to have saved some money, then an offset mortgage could be a good product to investigate. With an offset mortgage, any savings you have are “offset” against the amount you wish to borrow – and you pay interest on the difference. For example, if you have £30,000 in savings and wish to borrow £100,000, you would only pay interest on £70,000. The downside to this is that you would not earn any interest on your savings.

These are by no means all of the options that will be available to you when you come to choose your mortgage product. That’s why we’d always recommend seeking impartial independent advice before you start seriously looking into your next move.

Call or contact us today to find out how we can make your dream of moving house a reality.

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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

The Financial Conduct Authority does not regulate most buy-to-let mortgages.

We do not charge a fee for mortgage advice; however, a fee paying option is available. Our typical fee is £295 if a fee-paying option is chosen.

Active Mortgage & Insurance Solutions is a trading style of Philip Jeremy Godfrey, an appointed representative of The Right Mortgage Limited, which is authorised and regulated by the Financial Conduct Authority.