Working out the cost of moving home

Working out the cost of moving home

To start with, it is important to acknowledge, the costs that will be involved, selling and moving house, and the percentage, that this will take out of your purchasing budget. Do your homework, if you can accurately estimate this figure, the better it will be in the long run. This guide will outline all the costs, you will be presented, and where and how to find the most competitive quotes around.

moving-home-cost

New House – How much can you afford to spend on it?

You need to do your sums, to suss out how much you have available in your savings, minus the cost of all the expense involved in moving house, or maybe even changing location, a distance away, which will inflate the cost of moving, even more.

Below is a check-list, for your attention, to help workout your financial position.

Total available funds

* The maximum mortgage you can afford , without completely draining your funds.

* Savings you may have accrued

* Your expected profit, from your original property sale.

Moving house – the costs

* How much will your new house cost to buy

* What will selling your property cost.

Accumulative funds – cost of moving house.

* How much will your new house cost to buy

* What will selling your property cost

Cost of moving house

Above is a rough calculation, to be more accurate we will break down separately, to gain an estimate of the figures you need to put in it.

To calculate the expected profit, expected from your property sale

  1. Your current mortgage     (         )
  2. An estimate of what you think, your property will sell for (       )

Help is at hand, via the internet, which contains, lots of information to work these details out. Or conversely, ask a reputable estate agent, and find out from one of these sources, how much the property is worth. To find out, how much is still owing on your mortgage, it is a simple job to call and ask for the outstanding figures from your lender. With a simple subtraction figure, you will be able to calculate your avhievable profit.

* What you imagine your property will sell for.

* Your outstanding mortgage, that you still owe.

__________________________________________________________________________

SUBTRACT

* The expected profit from your profit sale.

Your savings and what other available assets you may have

It is important, to calculate this figure, because you will need ready cash, and some of your savings to cover immediate costs. Until, the completion of your sale, no extra cash will be at your disposal.

Your personal finances, must be addressed, and added to your budget planner.

The maximum mortgage – what can you afford?

It is recommended, by experts that you should pay no more than a third of your net income, on your monthly mortgage payments. It is noteworthy, and cannot be stressed enough, not to overstretch yourself, on outgoing mortgage payments. Lenders, once they feel that re-payments are regular, will offer further amounts. You must act responsibly, lenders won’t they don’t see any risk. Repossession, is a problem, because of rising interest rates. be aware, you can borrow, between 3 -5 times, your salary. There are over 8,600 different mortgages, but shop around, all lenders are different.

Probably, it is in your interest, to speak to an experienced ‘whole of market’ mortgage broker, who can calculate the maximum, you can comfortably borrower. Independent brokers, who are not connected to a bank or building society are recommended. They will give advise for your best interest.

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