Sale & Purchase Mortgage Advice

The thought of selling your existing residential property to climb the housing ladder and buy a property of greater value can be an exciting prospect for homeowners. There are many reasons why consumers decide to sell and purchase new residential properties.

The most common reason is that they have acquired a larger income, perhaps through a promotion at work, or reduced their financial commitments often through debt consolidation from savings. If all other elements stay equal, an increased income and/or reduced financial commitments will positively impact the maximum borrowing potential of an aspiring borrower. However, lenders can frequently change their affordability calculation formulas.

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In addition, all lenders regularly change the interest rates of their mortgage products. Therefore, a lender that was most suitable for your previous purchase may no longer be optimal for your new acquisition. For this reason, we suggest that you contact one of our mortgage brokers. He/she will then conduct a free whole-of-market research in order to identify your most suitable lender. Sadly, many borrowers do not realise the vast difference in mortgage product costs from one lender to the next.

For speed, many borrowers acquire mortgages from lenders that they have experience with. This is often a costly mistake.

There are various costs that homeowners will encounter upon selling and purchasing a residential home that they may not have previously experienced. For example, as soon as you become a homeowner, your future purchases are liable to Stamp Duty Land Tax.



Whereas, as a first-time buyer, stamp duty is void for purchase prices up to £300,000 in England and Northern Ireland. In addition, it is likely that you will require the services of an estate agent to market your current property.

Furthermore, legal fees will be payable for conveyancing. Lastly, if you are redeeming an existing mortgage, further costs may apply. For example, if you are currently in a fixed interest rate period, an Early Repayment Charge is likely to be charged upon redemption. This charge can be a significant sum – often thousands of pounds. However, it may be possible for our advisers to remove part, or all, of the early repayment charge by porting your existing mortgage to the new property.

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These additional costs mentioned, among others, must be accounted for by the borrower. We advise that you contact one of our advisers for further information on the upfront and on-completion costings when selling and buying a residential property.

If you are considering a sale and purchase, click the ‘Contact Us’ button and submit an enquiry form. You will receive a free consultation with one of our advisers to discuss your requirements in depth.

This article is intended to provide a general understanding of the topic. The contents should not be treated as advice. For personalised advice, please submit an enquiry. Your home may be repossessed if you do not maintain repayments on your mortgage.

For more information please get in touch and we will be happy to assist you.