There are many advantages of looking to move home. You may be looking to get on that next rung of the ladder, or you may be looking to the future and choosing school catchment areas. There is nothing quite like the feeling of changing location and property and all with the hindsight and knowledge you gained from buying a property previously. Sometimes as a first-time buyer, it is all about compromise, having now owned a property you know what works for you and what doesn’t so you can focus on finding your perfect home. It may have been some time since you have had to think about your mortgage and there are a few things when you are considering moving home.

Just as when you bought your first home, you will need a deposit. Most likely this won’t come solely from your savings like the first time you bought a property. The great news is the home you currently own hopefully has equity in it. Equity when moving home is typically accessed when you sell your current home and pay off your mortgage. The proceeds left after this transaction can make up your deposit. Sometimes however home prices fall, if that happens, there is a risk of ‘negative equity’ where your home becomes worth less than the mortgage you have on it.
This can be especially of concern if you are looking to use equity as the main basis of your deposit. When planning at this stage, the best thing to do is get an Estate Agent around to see how much your property may sell for and discuss any Estate Agency fees that you would need to take into consideration.

Some people choose not to sell their home when moving. It may be possible to keep your current home and potentially release some equity for your new home’s deposit. This could mean that your current home, if affordability allows, could simply become a second home for you and your family, or become a buy-to-let for someone else to live in – See our Buy To Let page for more advice on this option.

It can seem complicated to coordinate buying and selling, this is a very common concern among anybody looking to move home who currently has one to sell and a mortgage also. Rest assured it is very common to sell a property and buy a property simultaneously in the UK. Having the right professionals working for you through the transaction will put your mind at ease and ensure things go smoothly.