Relocating can have a serious effect on your finances so, if you’re considering making a big move, you need to think very carefully about whether it’s going to be worth it. Matt Stevens is a Director at The Mortgage Genie. Here, he outlines what you need to consider, and offers his top tips for keeping costs down.
There are a whole host of reasons why you might be looking to move to a different town or city: perhaps it’s for a job, love, or to be closer to family. But whatever your motivation might be, it’s important that you don’t take the decision lightly. Moving to a new house is one of the most expensive and stressful things you can do, but the stakes are even higher when you’re looking to move to a completely new area. And, more often than not, there’ll be additional costs you need to consider.
To help ensure the process of relocating goes as smoothly as possible and assist you in making the best possible financial decisions throughout, I’m going to talk you through some of the most important things to consider. I’ll also offer advice that will hopefully help you to avoid some of the most common pitfalls people fall into when relocating.
Work out what you can afford ahead of time
Before you make any big life decision, it’s important that you do the maths to ensure it’s going to make financial sense. This will also help you to determine what you can and can’t afford if you decide to go ahead with your move.
So, before you lock yourself in to relocating, it’s vital that you go through this process of working out how much you’ll definitely be able to borrow and whether you’ll be able to make the monthly repayments. You’ll also need to consider some of the addition charges that come with taking out a mortgage. At The Mortgage Genie, we have a guide to mortgage fees and charges, which explains exactly what you’ll have to pay for along the way.
Once you’ve considered all of the financial implications of getting a mortgage once you’ve relocated and are comfortable that you can afford all of the necessary payments, you can move on to seriously thinking about your move.
Location is everything
If you’ve done the maths and are sure you can afford to relocate, the next step is to choose where you’re going to live. Of course, you’ll have an idea of the general region you’re aiming for, but certain areas of most towns and cities can differ when it comes to the likes of property prices, the quality of life, and the cost of living. So, if you’re going to be moving to somewhere that’s currently quite unfamiliar to you, it’s important that you do plenty of research and, if possible, speak to people who already live there to get a good idea of what area is going to be best for you (and your budget).
It’s not just the cost of buying a property that you need to consider, either. For example, you’ll want to think about how much your commute is going to set you back, as well as whether you’re going to want to visit your hometown frequently and how much this is going to cost.
Even the cost of your home and content insurance can be affected by the area you live in, so don’t get caught out by not having an extensive knowledge of the area. Look into the crime figures of any area you’re thinking about moving to, and also look into the history of any property to make sure there are no serious threats of damage from the likes of flooding. All of this will help you to save money in the long run.
Don’t forget about the additional costs of relocating
So, you know you can afford the mortgage on a new home in your chosen town or city, and you’ve done plenty of research to make sure you can afford all of the extras like insurance and the cost of living. But, have you considered how much you’ll have to pay to actually move your life from A to B? Even if you’re used to moving between properties in your home town, there are typically more things to pay for when you’re relocating further afield, and it’s vital that you aren’t caught out by this. Otherwise, you could get into some difficulties.
The average house move cost £10,210 in 2018, according to My Big Move, and their research wasn’t even focusing on relocating further afield. House removal companies typically charge a lot more when you aren’t moving locally, and you’ll also have to consider the costs of visiting your new home town or city numerous times before you actually move. All of this can add up, so you’ll certainly need to have more than just a house deposit save when you’re looking to make a particularly big move.
If you don’t plan properly, relocating can take a serious toll on your finances. But, if you take all of these points on board, do plenty of research, and ensure you can afford to make the move you’re planning, everything will go much more smoothly.
