Trading Up

Why choose us?

If you have already been through the mortgage process with us, you'll probably come back, if not we will gladly help.

Take the hassle out of arranging your own finances and let us take care of you.
Why chose just one lender, allow us to research the whole market for you.

Options:

• Keep your current property: You could keep the property and convert to a residential investment property. For many, this option can be a cost effective entry into the investment property market as stamp duty is not applicable if the property was your principle dwelling home for at least the last 5 years.
• Sell your current property and carry equity into new home: This option allows you to look for a more competitive mortgage rate, as the loan to value ratio on your new home maybe less than the current one. It pays to compare the rates available from your current versus competing lenders. We can help in this comparison.
• Sell the current property but reinvest the equity: This is most suited to individuals who are trading down, where excess funds are available after the sale of the current property. However it is also an option for anyone who is comfortable with holding a higher mortgage balance on their new home and wants to invest in non property assets, or perhaps invest in their pension.
• Moving into my Second Home has to be easier than moving into my first? : Not necessarily. Trading up can be a very stressful time, especially if you are part of a property chain (chain of buyers and sellers reliant on each other to successfully complete a sale purchase).
• Differences between first mortgage and trading up : The maximum loan to value ratio on trade up mortgages is 92%. Even if you are planning to stay with your current mortgage provider you will still need to make a full application. The lender will need to assess your current financial position and the quality of the property being purchased.

There are also a number of specific trade-up mortgage packages available on the market. Just a word of caution, always be careful when offered free or discounted insurance packages from the mortgage provider, as it has been demonstrated that although you may receive a reduction in premium in the first year, the overall price of the product may not be the best on the market.

The other key difference is that you will probably be exposed to stamp duty.