Moving Home

When you’re thinking of selling your existing property and moving to a new home, it’s important that you try and budget accurately. The more accurately you can estimate this figure, the better.

Your new mortgage

Your mortgage advisor will work with you to find the most suitable mortgage. We will also give you illustrations for your monthly payments if interest rates rise. However, it’s up to you to make a judgment call as to the risk you are prepared to take on. Remember, if interest rates start to increase, you need to ensure that you can still afford the monthly mortgage payments.

Each lender is different and with over 1000’s different mortgages it pays to get the right advice. Malone Mortgages can help you find the right mortgage for your individual circumstances.

Working out your figures

The things you need to think about include

• How much you think your house will sell for
• How much you still owe on your current mortgage
• Savings you have available
• What selling your property will cost (estate agents typically charge between 1%-1.5% of the property value)
• What buying your new house will cost (solicitors costs, moving costs, etc)

This will give you an indication of what size mortgage you need.

Then consider your monthly outgoing and the maximum mortgage payment you can comfortably afford. Traditional financial wisdom suggests that your monthly mortgage payments should be no more than a third of your monthly net income (i.e. what you take home after tax). This is a useful starting point when you’re thinking about your new home.