Moving house

markwilliams82

I'm looking into the possibility of moving house with my wife and new baby

We currently have a 2 bedroom terrace house which we bought for £130k (£13k deposit and £117k mortgage) but is now valued at £145k

The house we've seen is on the market for £175k

I've got a meeting with our current mortgage provider next week but I'm doing a bit of early research to be prepared and so I can get more of an understanding

How does it work with moving house....do we still need a 10% deposit etc? What money would we need up front?

If we sold our current house for £140k (for example) would the difference between sale/mortgage value (£23k in this example) be classed as the deposit?

claret_mike

Your sale price - less selling costs of estate agents fee and solicitors costs will be what you have left to use as a deposit for the new house.

You will need to think about stamp duty and legal fees and possible survey fees etc for purchase.

kingstreet

All you'll need "upfront" is the mortgage application and valuation/survey fee and the cost of searches your solicitor will request.

All the other fees and costs will come out of the sale proceeds of your current home, so remember to factor them in as this will mean you have less to put towards your new home and will affect the amount of your next mortgage.

TBagpuss

ideally you will want a bit more money for your deposit - typically you pay 10% in exchange - you will have 10 of your sale price (£14,500) but will need 10% of purchase price (£17,500). In amny cases this will be negotiated so that the lower deposit can be accepted, but if you can rustle up the extra £3K it may make ife easier.

You need to budget for:
- estate agents fees (usually paid by your solicitors out of the sale money, on completion)
- solicitors fees (usually paid by your solicitors out of the sale money, on completion)
Stamp Duty (usually paid by solicitors - either out of your sale proceeds, or from money you provide to them in advance of completion - on a purchase of £175,000 this will be 1%, so £1,750)
- searches (you will normally need to pay for these up front to your solciitors - typically around £300)
EPC ( you will need to pay for this upfront when you put your house on the market - typically around £50. Your estate agents may be able to arrange this but check the cost - they may charge a *lot* more than arranging it yourself independently. Also double check whether the agents rely on the EPC for a floor plan - I've come across agents who don't have floor plans because the EPC was done independently - pick an agent who includes floor plans as standard, when you chose your agent!)
Mortgage application and valuation fees (paid when you submit your mortgage application. These will vary depending on the mortgage you are applying for - the valuation fee will normally be around £250)
Survey - if you want a home buyers report or full survey you will need to pay for these. It may be cheaper to get these via the lenders valuer but depending on where you are you may find it is quicker to get it done separately (which also allows you to chose your own surveyor ) I know I was told that a valuation would be sorted in about a week, if I wanted to get a full survey via the lender's surveyor it would be about 6 weeks. I had already decided to get my survey done separately as it allowed me to use a surveyor who I know through personal recommendations rather than an unknown. Cost of a survey will vary depending on your area, the type of property and whether you get a home buyers report or a full survey.
Moving costs - get a few quotes - costs will depend on the size of your property, how much stuff you have, how far you're moving and whether you want a full packing service. A small local firm (provided it is properly insured and a member of BAR) may be a better bet then a national firm.

markwilliams82

Thats a great help! thanks