What Are The Main Reasons People Decide To Move House?

Moving Home Mortgage Advice in Sheffield

Many people find the moving home to be a stressful, time consuming and costly experience, however, it’s process people do decide to go through. It could be for many reasons like a lack of space, a career change or a change in scenery. Below is the most popular reasons why people move and relocate to Sheffield.

Bigger living space

This can be a common reason amongst First Time Buyers in Sheffield as they usually start with a smaller property due to living either on their own or with another person. Then they find in the future they need a bigger space due to personal changes in their lives.

It could be that you are looking to start a family and need more room which could lead to them wanting to look for a bigger home.

Alternatively, you might enjoy your current home so look to raise capital by taking out a remortgage to fund home improvements, like a building extension, conversion or a home office in instead of Moving Home in Sheffield.

We do find the remortgage option to be a popular one, in particular, with growing families as this gives them the opportunity to have that extra bit of space whilst staying in a house they have grown attached to through the years.

Another reason why people take out a remortgage for home improvements is to increase the property’s value. This can be beneficial in the future if you are looking to turn a significant profit from the sale.

Change of scenery

If you are looking for a change in scenery, moving home can be perfect for this and can be the top reason why homeowners look to move.

First Time Buyers commonly choose this option because they were likely to have a limited budget so go for a lower end property. Due to having a higher income, they now have the opportunity to live in a more prosperous location.

Family & friends

A different location may open up the opportunity to be closer to both their friends and family. This usually occurs when couples start having a family.

Being close to family can be helpful when it comes to childcare. With many private nurseries being expensive, it can be handier for parents to seek help from their families for childcare.

Speak to a Mortgage Advisor in Sheffield

When it comes to Moving Home in Sheffield, you will need to have a rough idea of the cost of moving home. Speaking to a Mortgage Advisor in Sheffield would help with finding out how much you would be able to borrow which will give you an estimated quote on what your monthly payments could be.

For more information, contact us today and we will connect you with a knowledgeable remortgage advisor in Sheffield.

What are The Different Types of Mortgages Available in Sheffield?

The Different Types of Mortgage

You might be a First Time Buyer in Sheffield who are looking to take that initial step on the property ladder or looking to move into a different property through Moving Home in Sheffield, or your mortgage term is coming to an end so are looking to Remortgage in Sheffield. Either way, you’ll quickly find that there are a lot of options available for you when it comes to taking out your mortgage.

Below, we have put together an extensive list that highlights the most popular types of mortgages out there to customers on the mortgage market.

If you are interested in any of the mortgage options mentioned below and are looking for more information, then do get in touch as we will be able to connect you with a knowledgeable mortgage advisor for expert, fast & friendly mortgage advice in Sheffield & surrounding areas.

What is a Fixed-Rate Mortgage?

This type of mortgage means that your monthly mortgage payments will stay the same throughout the duration of your mortgage term.

You have the choice in the duration you want to fix your payments. It’s common for people to choose a fixed term of around 2,3 or 5 years or longer.

The benefit of this option is that your outgoings will probably be the biggest one in your finances, regardless of what happens with inflation, the interest rates, or the nationwide economy.

What is a Tracker Mortgage?

A tracker mortgage will mean you will have a mortgage interest rate that usually reflects the Bank of England’s base rate.

Because of this, the lender nor the mortgage lender will set the rate and it will fluctuate when the base rate does. For example, if the base rate goes up, your interest goes up. Therefore, if it goes down, yours will go down too which obviously would be beneficial to you.

It will require you to pay at a percentage that is higher than the Bank of England base rate. For example, if the base is 1% and you are tracking at 1% above the base rate, this will result in you paying back your interest at a rate of 2%.

What is a Repayment Mortgage?

A repayment mortgage will involve you paying back a combination of both the interest and capital each month. This is the mortgage people looking to buy a home usually go for.

If you have been able to keep your payments going for the mortgage term duration, you will be guaranteed to have paid it off in full and achieve the goal of owning your own home by the end of it.

This option can be seen across the industry and wider world as the most risk-free way to pay your capital back to the mortgage lender. When you begin your term, the amount you’ll be paying will be mostly the interest with your balance reducing at a slower rate. This is particularly the case if your term is 25,30 or 35 years.

Within the last ten years or so of your mortgage, the process speeds up. This means you will be paying back more capital than interest, with the balance reducing at a far quicker rate.

What is an Interest-Only Mortgage?

As a Mortgage Broker in Sheffield, we do find many buy to let mortgages being set up frequently on an interest-only basis ( this option does benefit many landlords), it is progressively more difficult these days to obtain a residential property on an interest-only mortgage.

This is due to the process because when you reach the end of your term, you are still required to pay the full mortgage amount to pay off all in one go, with no additional income to fund the amount you’re required to pay.

With this in mind, there a range of unique circumstances where this can be an appropriate route for a customer to go down such as downsizing when you are older or if you are in a situation in which you have other investments you are able to use to pay back the capital.

When it comes to offering these products, it’s common to find that lenders can be incredibly strict. Furthermore, the loan to values usually is much lower than they were in previous years.

What is an Offset Mortgage?

An offset mortgage is where your mortgage lender will create a savings account that will work simultaneously with your mortgage account.

To put this in an example, if you had a mortgage balance of £100,000 and you deposit £20,000 into your savings account, you will be required to only pay interest on the difference between those figures which in this case would result in £80,000.

This option can be a very efficient way of controlling your finances, especially if you won’t be paying higher rates of tax.

Tenants buying from landlords in Sheffield

Buy-to-Let Mortgage Advice in Sheffield

As a mortgage broker in Sheffield, we find that we get an ever-increasing amount of enquiries from tenants looking to buy from their landlords. This could be due to the fact that landlords are offering their tenants ‘first refusal’, which provides tenants a chance to buy the house before it goes onto the open market.

If you are wondering if your landlord may offer you the same chance to buy your rented home, it’s worth asking the question as they may be very willing to do so.

Why are so many Landlord selling their property to tenants?

Landlords selling their property to tenants has become increasingly popular over the years because the government cracked down on tax relief previously available on buy to let and some of those changes were introduced over a 4 year period. Property has always been viewed as a solid investment, so many decided to get through the tax changes as they have looked at their properties as a long-term investment.

Maintaining their investment over time is something landlords, old and new, find difficult. As a result, they look to sell up and leave the property market. In the circumstance where your landlord is looking to sell, then there is a possibility that they would sell to you as the current tenant because they will be aware of the number of advantages by doing this instead of the market. Some of these include:

• Avoiding estate agents fees – Because they are going directly to you and not the open housing market, they are cutting the costs by avoiding any estate agent fees. It makes the landlord’s job easier and cheaper through having no advertising costs and no costs for undertaking viewings.
  
• Loss of rent – A tenant going out their way to do property viewing is very unlikely, therefore, arranging this with a sitting tenant can become a problem for the landlord. Alternatively, some tenants decide to move out which creates a ‘rental void’ where there are no payments until someone else moves in. Therefore, selling to the tenant benefits the landlord as they keep a steady income all through until completion.
  
• No refurb costs –The landlord will have to make the house look presentable should the tenant decide to leave. Things like a fresh coat of paint, minor repairs, etc. can build up costs. Whereas selling the property to their tenant cuts this cost as they know the tenant is already happy with the house they live in and are willing to buy it.
  

The advantages for the tenant buying the property they rent

Tenants aren’t the only ones who benefit from this, tenants do too. Advantages include:

• Property Knowledge – You will have a broader understanding of the property because you have already lived in it. As well as this, you will know the condition of the house and if there need to be any improvements.
  
• Quicker Process – There is no need to sort out a moving date, pack up belongings, or anything like that because you already live there.
  
• No Chains – Because you already live there, there are no property chains to worry about. If you were in a property chain, you would have to wait for someone else to move before you can, but in this case, you are not waiting for anyone.
  
• Money Saved – Sometimes, landlords may offer you some discount off the asking price. This isn’t guaranteed but, you may find yourself saving money if this is the case. From a landlord’s point of view, selling to you benefits them by cutting additional costs in an open market.

If you are in need of some help with your mortgage after agreeing with your landlord to buy the property, please get in touch with your buy to let mortgage broker in Sheffield today.