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Looking to move home?

  • Buying a home can pose many challenges as well as bring many rewards.
  • This guide can help existing homeowners navigate the home moving process.
  • We are here to help you take the next step on the property ladder.
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Buying a home

Buying a home as an existing homeowner

Life brings changes, which include changing homes. It may be because you are starting a family, changing jobs, moving into the catchment area of a school or looking for a change of scenery. Whatever the reason, buying a home will present a challenge.

Buying a home to replace your current one

If you are planning to sell your current home and use the equity as a deposit on the new house, you will face being in a chain, where the timing of your sale and your purchase will have to be in sync.

Buying a home and letting out your old one

Alternatively, you may be considering letting out your current home once you move into the new home. In this case, you will need a consent to let from your current lender or a buy-to-let mortgage for your current home and a residential mortgage for the new home.

Buying a second home

You may be buying a second home for yourself or for a family member to stay in the new property. These scenarios require a second home residential mortgage and it will have to be affordable in addition to your existing mortgage.

Lender choice

If you have been happy with your current lender, it may seem like the logical choice to stick to them. However, as lending criteria and interest rates change regularly, as well as your circumstances, it is quite possible that your current lender may not offer you the best deal for your new home purchase.

As a homeowner, it is important to note that whatever lender option you choose, your case will be assessed as if you were a new customer to the lender.

In other words, whether you are porting your current mortgage deal or taking a new deal from your current or a different lender, you will have to pass the lender’s

  • affordability assessment
  • credit checks
  • property requirements and
  • various other criteria.

For this reason, as a whole of market mortgage brokers, we are best placed to check your lender options and help you get the most suitable deal based on your current circumstances and requirements.

Need Assistance?

Need assistance?

We are here to help you whether you are buying a home to replace your current one or buying a second home. Get in touch with us today, so we can answer any questions you may have and find and arrange the best mortgage deal for you.

Costs of buying a home

When budgeting, you may want to summarise the expected costs along the following lines, although not all of them may be applicable in your case.

Sale of your current property

  • Selling agent fee
  • Lender costs: account closing fees, early repayment charge
  • Solicitor fee

Purchase of the new property

Lender

Your new deal with your chosen lender will have some or all of these costs:

  • application fee
  • arrangement fee
  • valuation fee
  • solicitor fee
  • money transfer fee

Broker

  • Broker fee – dependent on the chosen broker company, it may be nothing, a fixed fee or a percentage of the mortgage amount.

Solicitor

  • Solicitor fee
  • Money transfer fee
  • Disbursements (e.g. postage)

3rd party costs

These are collected from you and paid by the solicitor on your behalf. They include

  • search fees
  • Land Registry fee in England and Wales or Land Register fee in Scotland
  • Stamp Duty Land Tax (SDLT) in England and Wales or Lands and Buildings Transaction Tax (LBTT) in Scotland
  • indemnity insurance
  • other third-party admin costs.

Costs of buying a home and letting out your old one

You may incur some costs if you keep your current property in order to let it out. There will be an admin fee for a consent to let from your current lender if you chose to keep your current deal. If on the other hand, you opt for a new deal, then some of these costs may apply:

  • application fee
  • arrangement fee
  • valuation fee
  • solicitor fee
  • money transfer fee

SDLT higher rate / LBTT Additional Dwelling Supplement

Higher tax rates have been introduced for those who are adding a property to their portfolio.

Although slightly different rules apply in England, Wales and Scotland, if you don’t sell your home before buying a new main residence, you will be liable to pay the additional tax. You’ll find further information and handy tools on our Stamp Duty calculator page.

Buying a second home

There may be various reasons for buying a second home:

  • You would like to have a property closer to your work, so you can stay there during the week instead of spending long hours commuting;
  • You may wish to have a place of your own when visiting family instead of staying at theirs or in a hotel;
  • An elderly family member can’t afford or unable to buy a place for themselves, so you buy a home for them to live there;
  • A child goes to university in another town and you buy a property for them to stay there instead of a student accommodation.
Whatever the reason, if you’re buying a home for yourself or for a family member to live in while retaining your current home, the transaction will be classed as buying a second home.

This purchase requires a normal residential mortgage, not a buy-to-let mortgage. The lender will assess your affordability based on your circumstances (e.g. income and outgoings), so you have to be able to afford the new mortgage, even if in reality your relative is planning to pay the mortgage.

How Much Can I Borrow?
How much can I borrow?
Mortgage Payment Calculator
Mortgage payment calculator
Stamp Duty Calculator
Stamp duty calculator
Buy To Let Mortgage Calculator
Buy to Let mortgage calculator
Offset Mortgage Calculator
Offset mortgage calculator
Mortgage Overpayment Calculator
Mortgage overpayment calculator
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