Selling And Buying A Property At The Same Time? All You Need To Know About Mortgages

 

Finding your ideal home is undoubtedly an exciting journey. However, it can become complex if you need to sell your current property.

You typically have two options:

1. 1. Selling your home first and relocating to temporary accommodation while you search for your next property,
   2. Or opt for the more common approach of simultaneously selling your current home and buying your next one.

To help you prepare to move home, here is our handy guide on what to expect.

---

1. Get your home valued

Setting a realistic price for your home is the first step in the moving process. An accurate price boosts your home's appeal to buyers, leading to a quick and successful sale.

Understanding the value of your current property will help you work out a budget for your new home.

Using the Quealy & Co Online Valuation Tool to get an instant, free estimate of your home's value is a great place to start. However, you should also obtain an in-person valuation for the most accurate assessment.

---

2. Work out how much you can afford

Review your finances to assess how much you can afford for a new property. Start by finding out how much equity is in your current property - i.e. how much of your property you own. You can work this out by deducting how much you owe your mortgage lender from the market value of your property. For example, if your property is worth £500,000 and your outstanding mortgage balance is £200,000, you will have £300,000 in equity.

This figure and any additional savings you want to put into the new property to top up the equity will determine how much money you could put towards a new home - and, therefore, how much you'll need to borrow.

It's also worth considering other costs involved in moving house, such as stamp duty, surveys, conveyancing fees, estate agent fees, mortgage arrangement fees and moving expenses. Make sure you factor these additional fees into your budget when moving home.

Considering ongoing expenses like insurance, utility bills, council tax, and mortgage payments is essential. While you may have been paying these bills already, they could change when you move, so budgeting for any potential increases is necessary.

---

3. Speak to a mortgage broker

Navigating the mortgage market alone can be tricky and stressful, so why not get expert advice from a mortgage broker? Brokers generally have access to more of the market, meaning you can often secure a better deal than directly with a lender. A mortgage broker will:

• Quickly search through thousands of mortgage deals available
• Provide advice on specific products to help you find the best option for your circumstances.
• Explain jargon to help you understand the application process
• Give advice about affordability and improving your credit score
• Efficiently complete your mortgage application on your behalf, saving you time and hassle.
• Communicate with other third parties, such as your lender, estate agents and solicitors

---

4. Get your agreement in principle

Your mortgage broker will help you get a mortgage agreement in principle, which is helpful when house hunting. This document states how much a lender may be willing to give you. While it's not a guarantee, it does give you a good idea of how much you'll be able to afford realistically.

---

5. Find the perfect property

Start by listing your property priorities, such as location, number of bedrooms, whether the property has a garden or garage, local amenities, etc., as this will help you narrow your search.

Here's where your agreement in principle comes in handy. Not only do you have a better idea of how much you'll be able to afford, but sellers and estate agents could take you more seriously during property viewings. Some estate agents won't even conduct a viewing for a buyer without a mortgage in principle.

Once you've found your dream home, it's time to make an offer.

---

6. Apply for a mortgage

Finding the right mortgage deal on your own is time-consuming and probably not something you want to juggle alongside everything else. If you work with a mortgage broker, you can let them take charge of the process.

Suppose you're considering borrowing more than your current mortgage. In that case, you can transfer your mortgage to a new property or switch to a different lender.

Your mortgage broker will assist you in comparing mortgage offers from various lenders. In addition to rates, you and your broker will discuss mortgage type, deal length, term length and any additional conditions (such as how much you can overpay or any early repayment charges). A mortgage broker will help you find the best product for your needs.

After finding a mortgage deal you like, submit your application. (your broker will be able to coordinate this for you). At this stage, your lender will conduct a property valuation before extending a formal offer. Most offers remain valid for up to six months, providing you with sufficient time to complete the conveyancing process.

---

7. Start the conveyancing process

Buying and selling a property can take several months due to many processes occurring behind the scenes. Conveyancers prepare contracts and conduct local searches. A survey evaluates potential issues or necessary repairs for the property.

Although it can be inconvenient if the survey identifies issues, it is generally better to address them now rather than discover them after moving in.

---

8. Exchange

A sale or purchase becomes legally binding once contracts are exchanged, and the deposit is transferred to your solicitor.

At this point, you can feel confident that your sale is proceeding. You can now set a completion date, typically two to four weeks after exchanging contracts.

---

9. Complete

On the day of completion, you'll officially say goodbye to your current home and receive the keys to your new one. If you're part of a chain, your solicitors will ensure that everyone involved moves on the same day.

Then you’re in! You’ve sold and bought, and you feel happy, excited, and exhausted. But now, your life begins in your new property. 

---

Find out how much you could borrow

For mortgage advice with no broker fees, book your mortgage appointment with Quealy & Co Financial Services Ltd.

Our Financial Services team at Quealy & Co. is ready to help first-time buyers, current homeowners, and property investors. Contact our friendly team to find out how we can help you get the best deal.

Call us: 01795 505761⁠

Email us: mortgages@quealy.co.uk

---

⁠**Your home may be repossessed if you do not keep up repayments on your mortgage.**

Quealy & Co Financial Services Ltd. is authorised and regulated by the Financial Conduct Authority No. 919693