Moving house? Mortgages simplified:
Your Go-To Guide

Under normal circumstances the advice would be to obtain a mortgage that is affordable based on your income, but there are circumstances that may impact you affording a house that is typically more expensive than you can afford. It may be that you can find additional deposit funds, for example a family member may help in gifting you the additional deposit amount, or you may need to look at a Joint Mortgage Sole Proprietor mortgage. This mortgage is based on you living in the house but another person, normally a relative, being part of the mortgage application and using their income to help boost the amount that you can afford. You will own the house, but the other person would be responsible for the mortgage should you be unable to make the monthly payment so it is important to engage with a broker to get advise on this type of mortgage.

The best advice is always to speak to a mortgage broker as they will be able to review all of your options and work with you to facilitate a plan that gets you to the level of affordability required.

If you don’t have access to a larger deposit or a relative willing to be part of the mortgage application then the normal affordability rules would apply in that you may have to look at houses that are in an affordable range for your circumstances.

The best way to calculate the cost of moving house is to consider all the expenses involved, including the cost of selling your current home, legal fees, professional fees, hiring movers, packing supplies, transportation, and any additional fees or taxes. It’s also important to factor in potential unforeseen costs and budget accordingly.

Discussing your move with a broker to ascertain your mortgage and borrowing position should also be done as part of this exercise to see if it is the right move for you, and to be able to calculate all of the likely associated costs of the move to give you all the information before making any final decisions.

You could lose your current home if you don’t keep up your mortgage repayments. In the case of sickness, it is a good idea to look at having the right type of insurance cover, such as income protection insurance, critical illness and also life insurance, in place, as this will maintain your income position (Income Protection) and/or a lump sum payment in the event of being diagnosed with a qualifying critical illness or in the event of a mortgage party dying.

If you are in a position where you are not able to meet your mortgage payments and do not have the correct insurance in place, or are unable to claim on your insurance, for example, you lose your job then the first thing that you need to do is to contact your lender to explain the situation and they will then, in most cases, put certain things in place to help you get through that tough period so that you don’t lose your home.

For Buy to Let or Investment type mortgages it is important to contact your lender if/when you are in a position whereby you are unable to pay your mortgage, but the lender may not offer as many options that they would if it were your home.

While there may appear to be numerous benefits to staying with your current lender, it’s essential to compare their offers with those from other lenders. Different lenders may have varying terms and interest rates, and it’s crucial to find the most suitable option for your specific financial situation and requirements. Consulting with a mortgage adviser can help you explore all available possibilities and make an informed decision that aligns with your future goals. Remember that your mortgage is a long-term commitment, so taking the time to research and assess your options will ensure you secure the right outcome for your specific circumstances and financial well-being.