Moving house and managing debt

If you're thinking about moving house, you'll probably remember how expensive buying your first home was - and making your next move won't be any different. As well as the cost of getting a new mortgage, you'll have legal fees to think about too - so it pays to be financially prepared.

However, this might be a little more difficult if you already have debts to manage. Before we get started, it's important to note that if you have serious financial problems, moving house is probably not a good idea: it's best to get back on top of your finances before you move (tips and advice can be found on this website).

But if you're just wondering how to manage your debts while you make the big move, here are a few tips for doing just that.

Budgeting for the move

It's always a good idea to try and calculate the cost of your house move before you start. Most mortgage lenders charge some kind of mortgage arrangement fee on many of their deals, so you should ask about these. Also get a few quotes from different solicitors for the required legal work.

It's probably most cost-effective to have the money for all this saved up in advance, if possible. By paying all your legal fees and arrangement fees in one go, they'll be out of the way and should no longer be a burden on your finances.

It may be possible to borrow a little more on your mortgage to cover these fees, but remember that this will increase the overall amount you borrow - and subsequently your monthly mortgage payments. You'll probably also pay more interest than if you paid the fees up front.

Keeping on top of your finances

During your house move, it's essential that you have good control over your finances in general. Try to keep to a strict monthly budget: make sure enough money is put aside at the start of the month for all your bills and other essentials, and the rest of your money can be spent as you wish.