First Time Sellers - Second Time Buyers

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David Lauder, a mortgage adviser at the ESPC in Edinburgh, gives some useful advice for those people thinking of selling and buying in Edinburgh.

In this article I shall try to give some useful information to those people in Edinburgh who are perhaps thinking of selling for the first time and buying a new property.

About the current Property Market in Edinburgh

2018 has started off pretty much as we found the market in 2017. There does seem to be a lack of properties coming on to the market which is driving prices up as there are plenty of first time buyers out there looking to get their first step on the property ladder.

This is good news for people like you who are thinking of moving as many properties are achieving sale prices well above Home Report value.

But the downside is – and you have probably found this if you have been keeping an eye open for properties on the ESPC website – that there a probably not so many properties that take your fancy and those properties too are likely to be popular with many buyers and so you too will probably have to offer above Home Report value.

The hope is that in 2018 we shall see more properties coming onto the market and with that, we will see a balance in the market.

Are you worried that you are stuck in a mortgage with an Early Repayment Charge?

It is worth checking your mortgage to see if you are tied-in to a mortgage that has a penalty payment if you pay-back your mortgage early.

If you have such a deal, then one of the ways of avoiding paying that penalty is to port your mortgage.

What is “porting”?

Porting is transferring your mortgage from your current home, to the next home. Although the process is often simplistically described as taking your mortgage with you when you move, what in fact happens is that you repay your existing mortgage when you complete the sale of your current home and resume the mortgage on the same terms with your new property.

The advantage of porting the mortgage is that this often means that you do not have to pay the penalty payment for paying off the existing mortgage early. And this can sometimes be a substantial saving.

What you have to bear in mind is that you can only port your mortgage with the same lender and any increase in the debt will be on the lenders current terms, which may not be the most competitive on the marketplace.

It may therefore still be worth considering the paying of the penalty and going with a different lender. Of course it is important to take advice from an independent mortgage advisor, as then you will get independent and individual advice based on your specific circumstances.


Are you thinking of starting a family?

One of the main reasons for people wanting to sell and move up to a larger property is because the need the space for children.

Often people wait until their first child is born before thinking of moving but here’s a tip: If you are thinking of starting a family and foresee the need to move into a larger property because of this, it may, in some cases, make sense to buy the larger family home first, and then start the family.

The reason for this is that lenders will always do an affordability check when you apply for a mortgage and the costs of looking after the child or children is taken into account and may possibly reduce the amount you can borrow.

The same applies if one of you is thinking of giving up work for a couple of years once the first baby arrives. Move now to be able to get the maximum mortgage.

Related Articles: Selling and Buying with Children and Moving Day with Children.


Get in touch

If you think it would be useful to have a chat to discuss what you might get as a mortgage, or about porting your mortgage, then get in touch.

David Lauder
Mortgage Adviser at the ESPC
david.lauder@espcmoneymanagement.com
Tel: 07810 522 422

 

The information provided in this article is provided in good faith. Whilst every care has been taken in the preparation of the information, no responsibility is accepted for any errors which, despite our precautions, it may contain. The contents of this article should not be taken as being a personal recommendation. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOANS SECURED AGAINST IT.

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