Thinking of moving? – Should I stay or should I go?
As 2015 begins, many people are dreaming of moving to a bigger, better home and may be asking themselves Should I Move?
With attractive rates & the recent stamp duty cull, it’s tempting to jump in feet first. However, it’s wise to think carefully before making any rash decisions, here’s some tips to consider:
Space Race: Wanting more space shouldn’t always mean a move. A loft conversion could be a great way to create that extra bedroom you need. Plus, you save on stamp duty and moving fees and there’s a number of ways to borrow. Speak to your existing mortgage lender, consider a re-mortgage with increased borrowing from a new lender or possibly a secured loan.
Family First: Consider how a move would suit family life. What about your commute to work and the kid’s schools? Are they happy where they are or would a move to a new area with better schools be ideal?
Bolt Hole: Living in Bristol but working in London? A pied-a-terre in the city centre can avoid lengthy commutes and allows your family to stay where they love best. Re-mortgaging your main residence to raise a deposit for a city bolt hole could be a way forward which keeps all the family happy. You could benefit from very competitive interest rates on the city purchase as it’s assessed as a second residence.
The Good Life: Many fantasise about leaving the big city for life in a more rural setting. Think carefully about the reality and how you would adapt. However, if the end of parking problems and land for your own private allotment or swimming pool sound idyllic make sure you get the right mortgage. A flexible mortgage could help with borrowing needs, you may not require the funds for the purchase but as you build your dream home you might be glad of easily accessible cash at the same rate of interest.
Best of Both Worlds: If you’re determined to move then make sure you consider all the options – you might be able to have your cake & eat it! For example, if you have a large amount of equity in your current home & it’s in a good rental area, why not let it out? It’s possible to get a really competitive rate on a residential mortgage with as little as 15% deposit, even going as low as 5% in some cases.