Looking for a smooth transition from your existing home to your new one?
Our professional Mortgage Brokers are here to help.
Ok, so you have decided it is time to move home. A moving home mortgage (or second time buyer mortgage) is a mortgage that provides the required funds you need to buy a home that meets your changing circumstances.
The new mortgage will also need to be affordable. You have been through the mortgage process before but would like help getting the best mortgage deal. MortgageLine is here to help you.
Whether you’re moving up the ladder or downsizing, you’re likely to have a larger deposit than a first time buyer. With a larger deposit available this means that you are more attractive to mortgage lenders and you should therefore have more options to choose from.
Finding out how much you can borrow is the first step in obtaining the moving home mortgage that’s right for you. Once you know what your repayments will be and what you can afford then you can start your house hunting. Especially if you’re hoping to buy a larger and more expensive property then it is really important to know where you stand and what your borrowing ability is.
You might have built up equity in your existing home and be pleasantly surprised at the kind of property you can afford. On the other hand you may not have too much equity in your existing home. Here at MortgageLine we will try and find the most suitable mortgage to meet your circumstances and help you to navigate any restrictions that may apply to your new mortgage.
It is very important to review your finances with an experienced adviser who will let you know where you stand. Your circumstances may have changed since you took out your original mortgage. You will need to be fully assessed by potential mortgage lenders to make sure you meet their criteria.
The affordability assessment is in two parts. First, the lender will want to see proof of income such as a letter from your employer and payslips. Check with your mortgage adviser what other sources of income can be counted towards your affordability.
Next, your mortgage lender will need to see what your outgoings and expenses are. That could include short term debts such as credit card and loans. Other expenses may be, childcare, gym memberships, school fees, mobile phone contracts and other monthly bills. Your mortgage lender then deducts your expenses from your income and will attempt to Stress Test your vulnerability to mortgage rate rises.
The mortgage lender will also want to see proof of your repayment capacity. The mortgage lender will look at payments that you are currently making and that you will not have to make after the new mortgage is in place. For example you may be paying an existing mortgage that will be cleared and you are also building up savings or perhaps paying rent. All these things count towards what the bank calls your repayment capacity.
You can also expect your lender to examine your current lifestyle and include your monthly spend on items such as groceries, holidays and entertainment in the calculations. This helps them to understand the financial impact of any change in your finances. Some lenders can also be selective with regard to the properties against which they’re prepared to offer a mortgage, including one bed apartments or older buildings that need essential repairs.
MortgageLine can advise you which lenders are likely to accept you based upon your circumstances and the property you’re interested in purchasing.