38% of homeowners feel like they're racing against other buyers
What you can do to improve your chances when making an offer on a home.
Last updated on
May 23, 2022 14:04
Lots of homeowners feel like securing their dream home is a race against time - and other buyers. Throw in a Stamp Duty relief deadline and things get even hairier… Let’s look at some data. Of the 2,000 current and future homebuyers we surveyed:
🏎️ 34% felt that being able to move quickly would be an advantage
💪 32% felt that not being in a chain would put them in a strong position to make an offer
💔 17% missed out on a house of their choice because someone else could move quicker
Being a chain-free buyer - i.e. not relying on the successful sale of your current home before you can purchase your new home - allows you to move more quickly when you’ve found a property you’d like to buy.
It can also make your offer more appealing to the seller because there are fewer moving parts than an offer from someone who's relying on a chain
Admittedly it’s a bit trickier: you have to sell your current property (and live somewhere else) before you make an offer on a new home.
This isn’t easy from a logistics point of view, but if you’re in the middle of your mortgage’s fixed term it could be very expensive or downright impossible (unless you’ve got a Habito One mortgage).
Most mortgages are portable (meaning you can port them from one home to the next) but if you’re selling up without buying a new property straight away you won’t be able to bring your mortgage with you. You’ll effectively be paying it off early and you could be subject to your lender’s early repayment charges. These are usually between 1% and 5% of the total outstanding mortgage amount. Ouch.
Our Habito One mortgage doesn’t have any early repayment charges, meaning you could sell up, break the chain, and give yourself a competitive edge when it comes to finding your dream home - all with no exit fees.
If you do decide to go chain-free, you’ll need to apply for a new mortgage for your next home. This isn’t mortgage advice - you should definitely speak to a broker if you’d like to discuss your personal situation.
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