Home Mover Mortgage Advice

Costs Involved in Moving Home

When moving home, several costs need to be considered:

• Estate Agent Fees – If you’re selling your current property, expect to pay estate agent fees, typically around 1% of the sale price.

• Stamp Duty – Depending on the latest rates (available on the HMRC website), you may need to pay stamp duty. The exact amount will be confirmed during the legal process. If you plan to keep your existing property as an investment, an additional surcharge may apply.

• Mortgage Fees – Various fees may arise depending on the mortgage product you choose, such as arrangement and broker fees. Some mortgages come with no arrangement fees but higher interest rates, while others have lower rates but require upfront costs. As experienced mortgage brokers, we use specialist software to determine the most cost-effective option based on your financial situation.

• Valuation and Survey Costs – Lenders often require a valuation and survey of the new property. Costs can range from £150 to £1,000, depending on factors such as the property’s age, condition, and construction type. A basic survey may be sufficient for newer homes, whereas older properties may require a more detailed assessment to identify potential issues like damp, structural defects, or subsidence.

• Conveyancing Fees – You’ll need a solicitor or conveyancer to handle the legal aspects of your sale and purchase. These fees typically range from £1,500 to £2,000, including stamp duty. The total cost will depend on factors such as whether the property is freehold or leasehold, if it’s being purchased in joint or sole names, and whether you’re using a gifted deposit.

• Moving Costs – Depending on your circumstances, you may need to hire a van or a professional removal company to transport your belongings to your new home.

If you’re planning to downsize, any increase in the value of your current home could allow you to take out a smaller mortgage, reducing your monthly repayments, assuming your financial situation remains unchanged. If the price difference between your current and new home is substantial, you may even be able to purchase your next property outright using the equity you’ve built up, making it mortgage-free.

No, a mortgage decision in principle is not a guarantee that a mortgage will be approved by the lender.

A decision in principle, also known as a mortgage promise or agreement in principle, is a preliminary assessment of whether someone is likely to be approved for a mortgage, based on their income, credit score, and other financial factors.

The assessment is typically based on a soft credit check, which does not leave a footprint on the person’s credit report.

While a decision in principle can be useful for indicating a person’s borrowing power and giving them an idea of what they can afford, it is not a formal offer of a loan. A full mortgage application would still need to be made and assessed by the mortgage lender, who would consider additional information such as the property being purchased, the deposit amount, and the borrower’s employment status.

It’s important to note that the decision in principle is not a guarantee of the interest rate, as this will depend on the lender’s assessment of the full mortgage application. Additionally, a decision in principle is typically valid for a limited period of time, and if too much time has passed between the decision in principle and the full application, the lender may need to reassess the borrower’s financial situation.

The short answer is yes, many mortgages are “portable,” meaning you can transfer your existing mortgage to a new property.

However, you will need to reapply for your current mortgage deal. If your financial situation has changed, you may no longer meet the lender’s criteria and will need to undergo a new credit assessment.