CAN REMORTGAGING BE MORE COST EFFECTIVE THAN MOVING?
Luke Ashton, mortgage consultant, HFS Milbourne Financial Services

Thousands of people save money each year by remortgaging and you don’t have to move house to do it. In fact, the number of people choosing to re-finance and invest in their current property is on the rise. HFS Milbourne Financial Services offer advice on switching your mortgage agreement and/or mortgage lender to one that offers greater affordability and the option to invest money back into your home.

It is not just first-time buyers who struggle with high house prices. Existing homeowners in need of more space find the gap between the steps on the housing ladder are getting ever further apart and harder to reach. The economics of the market are currently such that it makes sense to examine the opportunity to extend before considering a move.

Luke Ashton, mortgage consultant at HFS Milbourne Financial Services says: “Extending instead of moving is a way of getting more space in a house without incurring the cost of stamp duty, estate agents, lawyers and removals. The cost of moving hits almost £40,000 when you move to a house over £600,000, because of high levels of stamp duty and estate agents’ fees.”

Homes in Surrey are in high demand. Apart from London, Surrey has on average the most expensive property in the UK. This is bad news for home buyers but means that Surrey property has proved to be an excellent long-term investment. This is another reason why people are opting to stay where they are rather than moving to a new location.

Choosing your mortgage
HFS Milbourne Financial Services has a fast track system in place with all the major lenders so they can find you an offer that ticks all the right boxes. The mortgage market is so large and deals change so quickly that a specialist can really make a difference. There are so many types of mortgage available that it is easy to become confused, possibly opting for the product offering the lowest headline rate of interest instead of one that suits your outgoings.

Luke Ashton explains “It is important to sit down and take time to review the options of remortgaging your house. After all a mortgage is likely to be your biggest single expense and therefore getting the remortgage right is the biggest single money saver.”

Extending your home
Thousands of homeowners are building upwards and outwards, and even down into cellars, all because it can be a lot cheaper than moving. Determining your household's living requirements and then finding the optimum way to add space and value, makes sense.

Re-building your home
In cases where people own the freehold they have the option to knock down their existing property and build again. The costs involved in the planning and building materials are significantly lower, plus you have the extra benefit of getting the home you want for far less.

Let-to-buy
This is where people keep their existing property and rent it out, earning money, and they reside in another property. Let-to-buy is popular for two reasons. Firstly the reverse buy-to-let market is still going strong, and therefore there should always be a tenant to rent the property out to. Also, because you are not reliant on finding a buyer for your property, just a tenant, there is no onward chain to consider and this puts you in a better position to buy.

Independent Financial Advisers, HFS Milbourne Financial Services Ltd can accommodate your remortgage needs. For further details, please contact Luke Ashton who specialises in mortgages on 01483 468888.