The process of selling your existing home and buying a new property is always a difficult one. You have to deal with the idea of uprooting your family, and confront the always-unpleasant experience of going through a house move. However, the finances of a house move are by far the trickiest part of the process. If you’re planning to move in the near future, then here are a few things you’re going to want to keep in mind…
#1 – Look at the inflation figures
It might sound odd to look at national inflation to help determine the financial aspects of moving home, but there is a reason for this. When inflation rises, interest rates (usually) rise to compensate. Given you will be paying an interest rate on your new mortgage, knowing if there’s a rate rise in the near future could be beneficial. If there is one on the horizon, you may want to apply for a new mortgage sooner rather than later so you can capture the lowest rate.
#2 – Don’t forget your fees
With the conveyancing fees, moving costs, and stamp duty, the total cost of moving — before you’ve even spent a penny on a property — is around £10,000. It’s vital you factor these costs in when calculating how much you can afford to spend on your new home.
#3 – You have options if your sale is complex
One of the difficult scenarios that many people find themselves in occurs when you want to buy a house, but your existing one hasn’t yet completed the process of being sold. If you have worried about this exact problem occurring, then read assured, there is an option: bridging loans. If you want to find out more about this ingenious product, then the infographic below is just what you need…
Infographic by HSBC bridging loans