When are you not a starter anymore?

Using your excess value

There are quite a lot of home owner who have built up considerable excess value at the moment. This means that your mortgage is lower than the value of the home. This surplus comes in handy if you are going to buy a new home that is more expensive. In most cases you also need a bridging loan for this. 

Keep your current mortgage or take out a new one?

If you buy a new home and want to sell your previous home, you often need a new mortgage. You then have the choice of taking your old mortgage with you to the new home or paying it off in one go (without penalty) when you sell your current home.

The question is, what's smarter to do? The most favorable mortgage is one with good conditions and a low interest rate. Due to the low interest rates in recent years, it was wiser to simply take out a new mortgage. This may change in the future if interest rates increase, then most of us want to take the existing mortgage and interest rate with us. In other words, it really depends on your current situation. 

What should you pay attention to?

Did you buy your house too expensive at the time and did your house lose value? Then you have to deal with residual debt on your current mortgage. Under certain conditions, you may co-finance this residual debt in your new mortgage.Your income must be sufficient for this and in most cases the residual debt must be repaid within 15 years at least on an annuity and/ or linear basis.Your monthly costs will increase, but fortunately this almost never occurs in the current housing market. This may change at any time in the future.

Buy first or sell first?

This is a common question we receive from clients. This really depends on your personal and financial situation. In both cases it has its advantages and disadvantages. In the current housing market, it may be more convenient to first sell your current home and then buy another one. Otherwise, you may have double housing costs if you first purchase a home and cannot sell your own home. 

A bridging loan

What is a bridging loan? This is actually a bridge between your current home and your new home. To be able to use the surplus equity of your current home in your new home, you can use a bridging loan. This is a temporary interest-only mortgage with a term of 24 months and a variable interest rate.To be able to take out a bridging loan, you do need a valuation report of your current home. Most lenders calculate with 90% of the appraisal value for the bridging loan.

What is the transitional right?

Did you take out a mortgage loan before 1 January 2013? Then your mortgage falls under the so-called transitional law. This means that you can take your old mortgage form with you, which you can also enjoy mortgage interest deduction. You are obliged to repay the loan on an annuity or linear basis in a maximum of 30 years. If you do not do this, you will not receive a mortgage interest deduction on the part that you do not repay. 

Are you older than 57?

From the age of 57, your income affects your maximum mortgage amount. Banks and lenders include your pension income in the calculation from the age of 57. Your pension income is often lower than what you earn now, which in turn means that you can borrow less. Fortunately, in most cases, tailor-made financing is used to be able to borrow more as long as the monthly costs remain responsible.