Thinking of upgrading to a bigger property? Here’s some key things to think about before you commit to moving house.
Buying a bigger property can be an exciting experience that can provide you with more space and better amenities. It’s a chance to relocate to a new area if you want to, and it may mean less noise if you move from a semi-detached home to a detached property. In addition, it will offer room for your family to grow and can also provide more room for guests and visitors.
To ensure you get the right property for you, think about how you will use the extra space and precisely what your needs are. Do you need extra bedrooms for guests or a home office? Are you hoping for more outdoor space or a larger kitchen? Make a list of what’s important to you.
It’s also important to be aware of the preparations you need to make so that your prospective purchase is as smooth as possible. Let’s explore some of the steps you should take when preparing to purchase a larger property.
Research the market
Do your homework on property prices in your desired area so that you know what types of properties are available within your price range. Naturally, larger properties will be more expensive, so you may need to be flexible on location if you’re keen to buy a bigger home.
You may be unsure about how much you can borrow and how much this might cost. Speak to an experienced mortgage broker who can advise you on your financial situation and give you a better sense of how much you can afford to spend. Having an Agreement in Principle in place can make you a more attractive prospect to a vendor, as this shows you’re serious about buying a property.
Get your paperwork ready
It’s helpful to know what documents are required by lenders to support your mortgage application. This typically includes evidence of your income, which can vary depending on your employment status, bank statements showing your income and your daily expenditure, proof of identity and proof of address.
Make sure you can afford to move
Buying a bigger home is not just about ensuring you can afford the monthly mortgage payments. It’s also important to ensure you can afford to manage all potential costs associated with the purchase and maintenance of the property. Once you’ve found your dream home, you’ll need to consider whether it needs repairs and determine how much these will cost. You’ll also need to factor in the cost of moving – there’s the survey, solicitor’s fees, stamp duty and removal costs. If you’re moving to a bigger property, it’s also important to remember that utility bills may well be higher. You might be tempted to save money by not having a survey done, but we strongly advise that you do have one carried out. A survey will identify any key issues with the property and make you aware of any work that needs to be done.
Get a copy of your credit report
Credit referencing agencies like Checkmyfile can help with this. However, don’t place too much emphasis on your credit score as they are only a guide, and a bank will carry out its own credit score when you apply for a mortgage.
At MB Associates, we encourage clients to consider where they want to be in five or ten years’ time. Will your desired new property have a good resale value, and will it be a property you intend to live in until you decide to downsize? A good mortgage broker will be able to help you explore your long-term options so that you can make an informed decision on whether your prospective new home ties in with your long-term plans. We’re here to help if you need advice.