Welcoming a new child into the family is an exciting moment – but one that poses many questions: do you need more space for your new arrival? Is it time to upsize your house? If the answers are ‘yes’, you have some thinking to do before you can consider trading up, especially when it comes to finance. Here at Narrative, we’re happy to help you and your family navigate the task of upsizing your property.
Financial considerations for upsizing
Before you go house-hunting, you need to take a look at your financial situation and make sure you’re budgeting for a larger home. What can you afford? To answer this question, you need to review your income, savings, debt and credit score. Online calculators exist to help you with this task, or you can ask our expert advisers.
The hidden costs of moving to a bigger house
Remember that there are hidden costs that come with buying any home. They include:
- Higher mortgage payments
- Increased insurance and property taxes
- Potential renovation costs
- Higher utility bills and maintenance costs
It’s vital to factor in these expenses when you’re at the planning stage, but they’re not the only considerations you need to keep in mind. If you’re thinking about leaving your property to your family one day, you need to consult an advisor who can help with intergenerational property planning.
Mortgages for growing families
Finding the right property is important, but so is the finding the right mortgage. It’s essential that you understand the wide range of options out there and which one’s right for you. This is where professional assistance will come in, but you can still read up on the options open to you. These include:
- Fixed-Rate Mortgages – Rate remains at the same interest rate for a fixed period
- Tracker mortgages – These follow the Bank of England base rate plus a set percentage agreed with your lender
- Standard Variable Rate Mortgages (SVR) – This is an interest rate set by your mortgage lender that you’ll usually move to when your current mortgage deal ends
- Flexible Mortgages – These mortgages allow you to make overpayments, take payment holidays and underpay in tough times.
- Offset Mortgages - Links the borrower’s savings to their mortgage balance, helping to reduce the amount of interest paid.
Property and wealth management
In addition to discussing the best mortgage for your needs, an advisor can help you leave a legacy for your loved ones. You’ll need to think about inheritance tax and estate planning, and seek out investment advice. Family home planning can be a complex business, so it’s good to have an expert who can not only guide you on your buying journey, but offer home ownership tips. This guidance will be invaluable, both in the short and long-term.
Planning your legacy with Narrative
At Narrative, we provide tailored advice for families in Wimbledon, South West London, and Central London.
Ready to upsize your home for your growing family?
Speak to Narrative today.