Whether you are buying a bigger house for your growing family, downsizing as you are settling down, or maybe just wanting a change of scenery, Veracity Financial Planning can help find the finance you need to achieve your goals.
Contact us directly on 0115 967 0888
You have already made the hard leap to climb onto the property ladder, but now it is time to climb up higher. You may be moving to a bigger house to support your growing family, downsizing to save money, or because there is too much space! Or maybe you are just wanting a change of scenery.
If you don’t know where to start, contact us and we can get the ball rolling. We will be able to help you work out an approximate value of your current property, tell you how much you may be able to borrow, and then point you in the right direction of where to start looking.
We are here to help you with all of your queries, whether they are big or small; we will always be honest if we don’t think we can assist you.
Whilst this question is very subjective and ultimately depends on what property you want to move into, here are some tips and a bit of advice to help you work it out.
In most cases, the sale of your current residential property will cover your deposit for your new home. The higher the deposit you put down the less you will need to borrow from a lender and the cheaper your monthly repayments will be. If you can aim for at least a 15% deposit, then you are in a very good position.
To work out how much you could potentially borrow you can take your gross annual income (That is your annual income before tax) and multiply it by 4.5 or use our maximum loan amount calculator. This is a rough guide as some lenders will use a higher or lower multiple, but it should give you an indication of whether now is the right time to start looking.
We aim to offer simplified, sensible and valuable advice with clear and transparent fees available to see on our website. Our aim is to ensure that you understand what our advice looks like and what it costs before you contact us for further information.
Some mortgage deals come with other costs such as lender arrangement fees which tend to range from £499-£3,000+ depending on the deal, size of the loan, lender, etc. This fee can be added to the loan in most cases but just remember it will take your monthly repayment cost up slightly.
Another question which we are asked a lot is, ‘should I pay the loan upfront, add it to the loan or find a product that has no fee at all?’
A very important question to answer really. Some people would much rather pay the fee upfront to avoid being charged interest on the fee. The great part about adding the fee to the loan is that you still have access to the cheaper deal, whereas if you were to find a deal with no fee at all you would be subject to a deal with a higher interest rate.
In a recent case of ours, the client was quoted a 1.43% 2 year fixed interest rate with a £999 fee which could be added to the loan, the monthly repayments on this would have been £1,158.38p/m if the fee was paid upfront or £1,162.38p/m if the fee was added to the loan.
The same lender would lend to the client without a fee but at a rate of 1.96% which would be a monthly repayment of £1,224.97p/m.
The difference is £66.59p/m. This may not sound like a lot at first but over the 2 year fixed rate that adds up to £1,598.16 difference.
How can we help?
We work with individuals and families to provide bespoke mortgage advice.
As independent mortgage advisers, we can offer you deals from across the whole of the market. We work with a range of lenders, high-street and challenger banks – who will be able to lend to most clients, specialist finance lenders – who may be required for more unusual financing needs, and private banks – for individuals looking for a mortgage for more than £500,000
Our advisers work in Nottingham and the East Midlands but work with clients across the United Kingdom.
If you are looking to move home and would like to discuss your mortgage with us;
Call us directly on 0115 967 0888