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AlexGSi2000

Mortgage / House Move Advice.

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Afternoon,

 

When it comes to house moves - I am a complete novice and know next to nothing!

At somepoint over the next year, we would like to move home - we have been in our current first home since 2013.

During this time we have saved a small amount as a deposit for the next place, the property value looks to have also increased by around 20% (based on an online valuation).

 

The biggest unknown for us at the moment is to try and find out what we can realistically afford for the next place.

When using online mortgage calculators, they don't seem to take the current property into consideration. Based on our combined income the sites typically advise a mortgage amount around the value of our current home.

At this point should I be seeking independent financial advice, or can the mortgage lenders offer guidance?

 

We both like to think we live fairly lightweight according to our combined income, the only fixed outgoings are the mortgage, bills, phone contracts.etc - we have no car payments or other loans. 

 

Once we have ascertained what we can afford, I guess the next step would be to have the valued agreed in principal, so offers can be made on properties that are for sale?

In regards to advertising the current property, I guess this can be done at any point? I suppose if the property is advertised before an offer made on the next place, there could be a chance we would be moving in with our parents for a while!

 

Next concern for me is the property market, values are continuing to increase due to demand and short supply. A few properties I have seen on the market previously would now be unaffordable. - I wonder if this is artificial inflation, with the likelihood of this receding over the next 12 months or so? 

 

I am fairly clueless when it comes to all this - so any advice would be greatly appreciated.

 

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When we last moved, I used Liam from LT Mortgages (username Sarnie on Pistonheads - that's how I got to know him). Great advice and free until you actually apply. Try giving him a shout 

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I would seek professional advice. 

 

Yes you can play around with things on line and in theory add the profit of the sale of your current house (the 20% you mention) to what ever they say they will lend you to give you an idea of what value of house to buy.  Given the nature of what it is, you want correct advice.  You might get free financial advice from whoever you bank with, especially if you drop hints that you might want to use them as a mortgage provider.  Our mortgage is thru our bank and it was a great deal.  They were only too happy to get us in for a chat wrt mortgages.

 

I'm now just counting down the days till I pay it off.

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10 hours ago, AlexGSi2000 said:

 

Next concern for me is the property market, values are continuing to increase due to demand and short supply. A few properties I have seen on the market previously would now be unaffordable. - I wonder if this is artificial inflation, with the likelihood of this receding over the next 12 months or so? 

 

 

I think I’d be fairly cautious currently to be honest.

 

A lot of property in even remotely desirable areas appears to be being bought and instantly listed on AirBnB, as people currently seem to be happy to pay upwards of £1000 a week for very standard accommodation. I’d think this is almost certain to change as and when (ok, “if”) international holidays become the norm again - quite a few investors will be left with relatively expensive holiday-lets in a saturated market, and it may end up being a race to the bottom (price wise) to attract custom. There also seems to be a bit of a scramble to get out of cities and into smaller towns and villages - just in case we get another lockdown or two.

 

I can see things cooling off - I’d expect that we’re all in for some sort of extra taxation to cover the costs of the last 18 months at some point, so take home pay will probably drop a little. The market *should* correct at some point, but it depends how long you want to wait I guess...

 

Just my take on the situation - but stuff like this fascinates me. It’s incredible to be living in unprecedented times. 

 

Anyway. As other folk have said, get yourselves some professional advice - and be ready to act on it.

 

 

Best of luck!.  :)

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I am involved in residential property and get an earshot from agents and those in the industry on a weekly basis. I think property values over the next 18-24 months will depend on where and what type of property you have but on the whole will remain stable or carry on increasing. 

 

A family house with a garden in a popular commuter commuter belt is likely to keep or carry on increasing in value. Not everyone managed to move to their chosen home in the (ridiculous) stamp duty holiday period and there is still high demand post covid lockdowns for people to move to something better in case we have another similar issue sometime in the future. Middle to top earners also have a wad of cash in their back pocket from not spending during the lockdowns. 

 

The UK property problem is still there in that demand is massively greater than supply.

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