"James desperately needs more space"

Your step by step guide to moving home

Moving home can be a stressful experience, no matter how many times you've been through it. But we're here to help; we've created this guide so that you can select the right mortgage for you and make your move go as smoothly as possible.

Step 1: Calculate how much you can borrow

Use our online mortgage calculator to help you determine how much you can borrow. Based on your salary and existing monthly commitments, we can give you an idea of how much we'd be able to lend you.

Remember that the amount we could lend you and the repayments you can realistically afford may be different. You therefore need to consider what other outgoings you need to budget for in your repayment calculations.

Step 2: Choose the type of mortgage which suits your needs

It's essential that you choose a mortgage that suits your individual circumstances. To help you do this, take a look at our mortgage finder.

Bank of Ireland Mortgages has a range of products to suit different needs. So, once you've selected an option that's right for you, you'll need to request a Key Facts Illustration which details in full the mortgage options you've chosen. As part of our regulatory requirements we must provide you with a Key Facts Illustration, which you can get by clicking here and registering in our secure online application area. You can get a KFI for comparative purposes without going through a full application process.

You also need to consider how you would manage your mortgage repayments should the unexpected happen. Take a look at the range of insurance products our partner Legal & General can provide to ensure that your home is protected for you and your family.

Repayment options

You can pay back your mortgage, either on a repayment or interest only basis. And you can also combine these methods on a part repayment and part interest only basis.

Repayment mortgage

In the early years of your mortgage term, the bulk of your monthly repayment is interest and therefore the capital that you owe won't reduce very quickly. However, as the mortgage balance reduces so does the proportion of interest you pay, meaning that the sum you owe will reduce more quickly in the later years of the mortgage term.

Interest only mortgage

There are a variety of interest only mortgages, but the monthly payment you make is only covering the interest charged for the mortgage.

So at the end of the agreed term, you need to ensure that you can repay the amount that you originally borrowed. Think about how you will finance the final payment, for example through means of an Individual Savings Account (ISA), shares, or the sale of a property. We would recommend that you consult an Independent Financial Adviser (IFA) to discuss the right repayment method for you, which should be reviewed on a regular basis.

Other costs to take into account

There will be other costs that you will have to bear in mind when you move home or take out a mortgage including:

  • Deposit: In most cases there will be a minimum 10% deposit of the purchase price.
  • Conveyance fees: You'll need a solicitor and/or conveyancer to handle the legal elements of selling your home and buying a new house, such as checking the land registry details, conducting any necessary searches and changing of names on the title deeds.
  • Local Searches: Your conveyancer/solicitor will get local information about the property you want to buy and the surrounding area. This is obtained from the local authority to ensure that there are no potential problems that could devalue the property, such as new road plans or local boundary disputes.
  • Disbursements: Your solicitor or conveyancer will incur various fees as they request information from the land registry and from various other sources in the case of searches. These fees will be passed on to you.
  • Standard Valuation: We will conduct our own basic survey. This will allow us to assess the value of the property, ensuring that the value of the property will give sufficient security for the mortgage. This type of report does not go into detail about the property's condition and in some cases we may instruct an Automated Valuation Model (AVM) which will not include a site visit and you will not receive a written report. You can choose to have a Homebuyers or Structural survey at an additional cost, which will provide a more detailed report about the overall condition of the property.
  • Fund Transfers: Electronically transferred money which goes from one banking or finance institution to another can incur charges.
  • Removals: You may want to employ a removal firm to handle the move for you. Ask friends and family if they can recommend anyone locally, but make sure that you get at least three different quotes to compare their costs. It's also worth checking on their policy regarding insurance, in case of any damages in transit.
  • Higher Lending Charge: On our standard mortgages, where the loan required exceeds 85% LTV of the lower of the purchase price or valuation (and is not a product described as HLC Higher Lending Charge paid by Bank of Ireland Mortgages), you will pay the following additional security fee on the excess loan over 75% LTV:
    • over 85%-90% - 7.20%
    • over 90%-95% - 8.95%.
  • Stamp Duty : You will have to pay the Government tax on the purchase of most properties valued above £175,000.

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Step 3: Get an Approval in Principle

The next step is to ask us for an Approval in Principle . This is when you find out based on the basic information you've provided if, in principle, we'll offer you a mortgage and confirm how much we'll lend you. You can get an Approval in Principle online.

Please remember that an Approval in Principle is not a guarantee of an offer of loan, and the final application will be subject to underwriting.

Step 4: Look for the property that's right for you

Once you've got an Approval in Principle, you'll know your budget which will help you to choose your new home.

Choose an area

Your budget may determine your location. However, you do need to consider whether the area is convenient for your commute to work? Do you have to be close to schools? Is there enough room for future years?

How to buy

The most common way to buy a home is via an estate agent, although auctions, private sales and the internet are becoming more popular. You can also use the internet to help you research areas; sites such as www.upmystreet.com can help you to look at local amenities and average house prices.

Take your time

Visit your chosen property several times at different times of the day, on different days of the week. It gives you the chance to see how busy and noisy the area is, and if you're buying on your own, take someone along with you to gain a second opinion.

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Step 5: Make an offer

If you've found your dream place, you need to decide how much you'd like to offer and contact the seller's agent. Once the seller accepts your offer, the property is yours 'subject to contract' which means that both you and the seller have agreed to the deal in principle. However neither of you are legally bound. Please note: this process is different in Scotland. Call us for details if you are considering buying north of the border.

Step 6: Appoint a solicitor and apply for your mortgage

Take a look at the full breakdown of your solicitor's costs before you appoint them. We can also help you find a solicitor. You can then arrange a valuation report. This report is carried out to ensure the property you are buying is worth the amount you want to borrow. It's a basic valuation which may not highlight potential problems that might arise with the property. You should consider carrying out a more detailed survey.

The three main types of survey:

Mortgage valuation report

Carried out by one of our valuers, or by an independent panel valuer, you'll need a copy of this report so that you can secure your mortgage. The report is based on a limited inspection of the property, and it may not highlight any longer term problems. So you should consider arranging a fuller inspection which gives you a detailed inspection report.

Homebuyers' Survey and Valuation

Approved by the Royal Institution of Chartered Surveyors (RICS) this is a more detailed report (often called a Property Purchase Survey and Valuation) which gives you information on the property's state of repair. Although it's a more detailed survey, it doesn't inspect parts of the property which are covered, unexposed or inaccessible. Fees for this survey are more than for a Mortgage Valuation Report. However, if you go through Bank of Ireland Mortgages, we can help you to arrange for the same surveyor/valuer to do both.

Building Survey (formerly known as a Structural Survey)

This survey is an investigation and assessment of the construction and condition of a building, and doesn't normally include valuation advice. This means that you will still need to conduct a mortgage valuation report.

Once the survey is concluded, you've completed the application form and we've made all the relevant checks, which will include confirming that you can afford to repay your mortgage loan, we will send out your Offer of Loan to you.

What happens if the survey highlights issues?

If your survey unearths that extensive work is required, you can try to negotiate the price down to compensate you for the future expense, as your offer has up to this point been made subject to contract.

Your solicitor/conveyancer will also check all the legal documents relating to the ownership and use of the property. They will conduct other searches to check if there are any matters which may affect the value of the property.

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Step 7: Exchange and completion

Once your solicitor has completed all the checks, both parties are ready to exchange contracts, and you will pay your deposit via your solicitor. At this point, both parties are legally bound to proceed with the transaction. If you don't proceed with the move, the seller is entitled to keep your deposit.

Before you can take ownership of the property, you'll need to sign the mortgage deed and the document that transfers the property over to you. Make sure that you have Buildings insurance in place for your exchange date.

Step 8: Moving into your new home

Once you've completed, moved and settled in - all that's left is to organise the house warming! You're the proud owner of your new home.

Please remember that it's essential that you keep up the repayments on your new home. You may therefore wish to consider Mortgage Payment Protection Insurance which can cover the cost of repayments should anything unexpected happen.

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A helpful relocation case study

Read Anna & Chris's story about Bank of Ireland Mortgages helped them to move home.

Buying a new home case study