Most people look to trade up due to family circumstances, their starter home is now too cramped, they need better access to schools, there can be a multitude of reasons.
Buying your first home may have been tricky but when you have to sell and buy a home then this leads to further complexity.
Our Top 5 considerations when looking to move home-
- Understand your budget – equity in your current home + savings + mortgage
- Basic lending rules for second time buyers – 3.5 times allowable income and min 10% deposit
- Bridging finance to trade up does not exist in Ireland – if relying on the equity in your home (sales price less mortgage) to buy your next home you will have to have your current home sold and cash in bank before purchase.
- The logistics of sale and purchase – how to prepare – getting your current home sale ready is key, for most people they will not want to put their own home on the market until they have a home to buy. However in the current home purchase market where there can be several bidders being in a chain can be a negative factor. You may come up against buyers who are cash or chain free having sold their home.
- Engage your solicitor and be ready to go, ensure LPT is paid and in date, request title deeds from your current lender, ensure planning is in order if you have completed works.
- Do you really need to move or can you carry out home improvements – convert an attic or a garage or knock a wall and update bathrooms or kitchens. If you have scope to do this then you can look to take out a mortgage top up to finance the works.
For advice and to start the process by understanding your budget and timings required to sell and buy speak to our mortgage advisory team at doddl, we can help and our service is free.
