From calculating your monthly mortgage repayments to budgeting for hidden extras, we've got the details on saving for your second mortgage.
5 Easy Ways to Master Your Movers’ Mortgage Budget
Buying your first house is a very exciting experience, but as things change, and the house you first bought may no longer suit your needs - and that’s where a Home Movers mortgage from AIB can help. If you’re trying to figure out how you’ll make your new home a reality, the five tips below will help you to get your finances in order.
1. Determine Your Budget
Of course, you’ll need a clear idea of what your new home will cost so you can figure out your budget. Your budget will be determined by how much money you’ll have left when you’ve determined the price of your home, your savings (more of that later) and of course your new mortgage loan. Enlist a few local estate agents to get valuations on your current home. The fee charged for this can vary so make sure you ask for a price first.
The Equation for your new home budget: Equity + Savings + New Mortgage = New Home
If you’re in negative equity, it doesn’t mean you can’t move home. You can apply for an AIB Negative Equity Mover. This allows you to add the negative equity balance from your current property onto your new mortgage.
2. Calculate Your Mortgage
The online Mortgage Calculator is a quick and simple way to calculate your mortgage. This will give you an idea of what you can afford and the deposit you need to save. Remember, under the Central Bank rules, you’ll need to self-fund 20% of your house price as your deposit.
3. Budget for All the Hidden Extras
When you’re planning your budget, don’t forget to factor in the costs of selling and moving, which can quickly add up. Here are some common forgotten costs to add to your budget:
· Solicitor’s fee
· Estate agent’s fee
· Stamp duty on your new home
· Valuation fees
· Cost of a structural survey for your new home
· Moving company cost
· Storage costs
And finally, the home you’re selling might need a lick of paint before it goes to market so don’t forget to factor this in too.
4. Figure out Your Timeline
You might decide to sell first to free up some capital or you might be ready to pounce on your dream home as soon as you see it. Whatever you decide on, figure out your timeline in advance so you can properly prepare. If you’re selling first, you’ll need to allow some wiggle room in your budget to cover rent. Or, if you move first, you might need to invest in getting your home ready for viewings to ensure a quick sale when it does go to market.
5. Making Savings
Little changes can make a big dent in your budget. You can save a considerable amount by shopping around on your utilities so it’s worthwhile spending a couple of hours researching the best deal.
Take a deep dive into your finances with the My Money Manager tool to spot where your budget is going. This nifty tool charts your spending in easily digestible charts and graphs, making it simple to track where you’re spending your money. You can also set up unique savings goals linked with your accounts so you have a target to aim for.
Find Out More About a Home Movers’ Mortgage
If you’re in the market for a new home, we’re here to help. Book an appointment with a mortgage advisor at your local branch who will guide you through the process. And don’t forget to ask about our great value home insurance cover too.
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Allied Irish Banks, p.l.c. is an authorised agent and servicer of AIB Mortgage Bank in relation to origination and servicing of mortgage loans and mortgages. AIB Mortgage Bank is regulated by the Central Bank of Ireland.
Allied Irish Banks, p.l.c. is regulated by the Central Bank of Ireland. Copyright Allied Irish Banks, p.l.c. 1995.