In this brief blog, we answer the question “Should I move house”. There are many reasons why you may consider moving houses, this guide helps you decide.
Maybe you have lived in your current house for a long time or the property market improved incredibly since you bought your current house and you are wondering to yourself “should I move house?”
Moving houses is a very difficult decision. It involves a lot of consideration and it may take a while before you decide if you should move houses or not. Moving houses may involve buying a new house, renting a house or maybe moving in with your friends or moving in with your family.
Should I move house?
Your house is not big enough
You may want to move house if your current house is not being enough. Maybe your household has increased due to having children or maybe your current children have grown up and the house that you moved to initially which was once fit for purpose is no longer fit for purpose.
In this case, moving houses may be something you should do.
Your house is out of fashion
You may want to move house if the current house which you moved to a long time ago is no longer in fashion. Maybe it needs a renovation to be brought up to date and if this is the case then moving house may be a good idea.
Your house has increased in value
You may also want to move house if the property market has been great since you bought your current house and the value of your current house is now incredibly higher than what you paid for it and you may sell it and have excess funds to use as a mortgage deposit or to use to move to a new house by buying in cash. Whatever the case, increased equity in your property may make you wonder if you should move house.
Another reason you may want to move houses could be if your neighbourhood is in decline. This could be because the crime rate in your area has increased or maybe the schools in your neighbourhood have now left, businesses have left and the general neighbourhood is now in decline. If this is the case then thinking to yourself, “Should I move house?” is probably the right thought and maybe you should move house.
Your house is costing you too much
Maybe your house is now costing you too much in upkeep costs. This could be simple things such as heating due to the house being built in such an inefficient manner which makes the cost during the winter almost double the amount that a similar-sized house may be paying. It may also be that the amount of renovation needed to keep your house in good order is rising every year. If this is you then thinking “Should Inmove house?” is a very good idea.
Your house doesn’t make you happy
If your house has stopped making you happy then moving houses may be considering moving houses. Your house may have stopped making you happy for a variety of reasons, but whatever they are.. If they are enough to make you feel a certain type of way which isn’t happy then maybe you should move house.
Can you afford to move house?
Asking or wondering “Should I move house” is good but can you actually afford to move house.
Moving house will have the same cost as buying a new house.
Some of the costs to consider when moving house includes:
A mortgage deposit
A conveyancing fee
Mortgage advice fee
Mortgage application fee
house survey fee
The mortgage deposit, mortgage advice fee and mortgage application fee may not be needed if you pay cash for your new house.
If you need to get a mortgage then you must remember that most mortgage lenders will require a 5% mortgage deposit and the average house prices are steadily rising across most regions in the United Kingdom.
This means for a £500,000 house you will need at least £25,000 as your mortgage deposit.
Is it a good time to move?
A good time to move house will usually be when there is less demand for moving services or when house buyers will not be in demand of properties. This means you should have less competition and hence a cheaper price.Moving houses during the winter, fall or early spring is usually the best.
Should you renovate?
Maybe renovating your house rather than moving house may be a better option. Working out the cost of both options, in money terms and in what will make you much happier.
A renovation could give your house a renewed look and ensure that you are able to stay in your house and avoid going through a stressful house move.
If you have thought about doing a house renovation but you find yourself still thinking “should I move house? Then maybe you should follow your heart and move.
What to consider?
If you are thinking of moving house then there are a few things you may want to consider before making up your mind.
Will you be close enough to your work?
Before you move house you should consider how close your new house will be to your workplace. Will it be close, farther or will it cost you more or less?
Are there any good schools?
If you have kids then having good schools which your children could go to will be very important. If your kids are already in school then is your new house close enough to your kid’s current school.
What is the crime rate?
The crime rate of an area is very important when looking at whether to move to an area or not. If the crime rate is up then maybe you should not move homes. If the crime rate in the area is low and is getting lower then moving to the area may be a good idea.
Is it close to major roads?
You need to check to see if there are any major roads close to your house. This could be seen as a positive or as a negative. The positive is you can easily get on the major roads and travel but it could also mean that people could commit crimes in your neighbourhood and get away way easier.
Is there a lot of foot traffic?
A lot of foot traffic may mean that there is potential for a lot of crime in the neighbourhood.
Are there suitable grocery stores nearby?
Having suitable grocery stores nearby may be very important to you.
Is there suitable parking nearby?
Having suitable parking next to your house is very important if you drive.
Is the neighbourhood having an upward trend?
An upward trend maybe when there are a lot of shops and businesses moving into the area. This could be a good indication that property prices are about to rise.
Government schemes which can help you move house
There are lots of government schemes which may be able to help you move house, they include:
- Lifetime ISA– gives you a government bonus of £1,000 if you save the maximum £4,000 a year.
- Help to buy ISA– gives a maximum bonus us £3,000 if you save the maximum allowed of £12,000. Before you get either you should consider which is better. Lifetime ISA vs Help to buy ISA.
- Help to buy equity loan- gives you up to 40% as a 5-year interest-free equity loan. You begin to pay interest at 1.75 % after the fifth year and 1% plus RPI for every year thereafter.
- Shared ownership– You can buy between 25% to 75% of the property initially with a shared ownership mortgage and then buy more using a staircasing mortgage.
- Armed forces help to buy– similar to the help to buy equity loan but specific for the armed forces personnel giving them an increased chance of acceptance.
- Rent to buy– This is the right to buy scheme on which this guide is currently discussing. A different marketing name is just used. Watch out for this when shopping to avoid missing out on eligible properties due to confusion.
- Right to buy– allows you to buy your home at a discount price.
- Preserved right to buy- same as above.
- Right to acquire- same as above.
Using a mortgage broker to move house
You may want to consider using an independent mortgage broker to get a mortgage for the house which you want to buy in London.
Mortgage brokers are important as they can access mortgage products from across the whole of the market in some cases. This could be over 11,000 mortgage products. This may have some advantages than going directly to a mortgage lender.
A mortgage broker will look to understand your financial circumstances and then provide recommendations on which mortgage products may be suitable for you.
After giving you these mortgage recommendations, most mortgage brokers will seek your consent to apply for a mortgage in principle. This will allow you to shop for your home easier as more estate agents and sellers may take you seriously or it will give you confidence that your remortgage is indeed a possibility before you make a full mortgage application. Once you have found a home you want to buy or are satisfied with the mortgage offer for your remortgage then the mortgage broker will then look to get you a mortgage offer.
This will come with a key facts illustration document which details out the features of your mortgage including how much you will pay per month if there are any limits such as early repayment fees, or annual overpayment limits.
If you are happy with everything you can then go on to secure your mortgage with the help of a conveyancer. Your conveyancer will manage the legal searches on the property to ensure there aren’t any issues with it, they will oversee the sales agreement to ensure it is in your best interest, they will manage the transfer of mortgage funds, exchange contracts with the seller or their conveyancer and set a completion date with the seller or their conveyancer.
In this brief blog we answered the question “Should I move house?”. If you have any questions or comments please let us know.
If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.
You can also contact the debt charity “Step Change” if you are in debt and need help.