Home Mover Mortgages

Moving home can be exciting, but the mortgage side of the process can sometimes feel more complicated than when you bought your first property.

 

You may already have an existing mortgage, equity tied up in your current home, early repayment charges to consider and a new property that requires a different level of borrowing.

 

You may also be wondering whether you should keep your current mortgage, port it to the new property or start again with a completely new lender.

 

I can help you work through those options.

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My aim is to help you understand what your move may look like financially before you commit to a new property, and then guide you through the mortgage process once you are ready to proceed.

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Mortgage Advice for Home Movers

 

 

Moving home is rarely just about finding a new mortgage.

 

There are usually several different elements to consider at the same time.

 

These may include:

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• The value of your current property.

• Your outstanding mortgage balance.

• The amount of equity you have built up.

• Your current mortgage deal.

• Any early repayment charges.

• The price of the property you want to buy.

• How much additional borrowing you need.

• Your current income and financial commitments.

• Whether your existing mortgage can be ported.

• Whether another lender may offer a more suitable option.

 

The right mortgage route will depend on your circumstances.

 

For some people, keeping their existing mortgage may make sense.

 

For others, moving to a different lender may provide a better fit.

 

The important thing is to compare the options before making a decision.

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How Much Can I Borrow When Moving Home?

 

 

Your borrowing capacity may have changed considerably since you last applied for a mortgage.

 

• You may now earn more.

• You may have additional financial commitments.

• You may have started a family, changed jobs, become self-employed or taken on other borrowing.

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Mortgage lenders will normally assess your circumstances based on your current position.

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They may consider:

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• Basic salary.

• Bonus income.

• Commission.

• Overtime.

• Self-employed income.

• Existing loans.

• Credit cards.

• Car finance.

• Dependants.

• Childcare costs.

• Other regular financial commitments.

 

Different lenders calculate affordability differently, so the amount available can vary from one lender to another.

 

Speaking to a Mortgage Broker before you make an offer can help you understand your realistic budget for the move.

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How Much Equity Do I Have in My Home?

 

 

Equity is broadly the difference between the value of your property and the amount you still owe on your mortgage.

 

For example, if your home is worth £450,000 and your outstanding mortgage balance is £250,000, you would have around £200,000 of equity before taking account of selling and moving costs.

 

That equity may form part of the deposit for your next property.

 

However, it is important not to assume that every pound of equity will be available for the new purchase.

 

You may also need to budget for:

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• Estate agent fees.

• Solicitor or conveyancing fees.

• Removal costs.

• Mortgage fees.

• Surveys.

• Stamp duty where applicable.

• Repairs or improvements to the new property.

• Other moving expenses.

 

Working out your usable equity before looking at properties can give you a clearer idea of your next-home budget.

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Can I Take My Existing Mortgage With Me?

 

 

Potentially.

 

Many mortgages are described as portable.

 

Porting means taking your existing mortgage product from your current property to your new property.

 

However, portability does not mean the lender is guaranteed to approve the new mortgage.

 

You will usually need to make a new mortgage application.

 

The lender may reassess:

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• Your income.

• Your expenditure.

• Your credit position.

• The new property.

• The amount you want to borrow.

 

You may therefore have a portable mortgage product but still need to satisfy the lender's current affordability and lending criteria.

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What Is Mortgage Porting?

 

 

Mortgage porting allows you to transfer your existing mortgage product to another property, subject to your lender's approval.

 

The mortgage itself is not literally moved from one house to another.

 

Your old mortgage is repaid when your property is sold, and a new mortgage is set up on the new property.

 

The lender may allow you to retain the interest rate and conditions of your existing mortgage product on some or all of the borrowing.

 

This can be useful if your current mortgage deal is attractive or if leaving it would involve a substantial early repayment charge.

 

However, porting is not always the best option.

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Do I Have to Port My Mortgage?

 

No. Even if your mortgage is portable, you are not usually obliged to port it.

 

You may instead consider taking a completely new mortgage.

 

Whether this is appropriate depends on factors such as:

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• Your current mortgage rate.

• Time remaining on your existing deal.

• Early repayment charges.

• New borrowing requirement.

• Mortgage products available elsewhere.

• Your current financial circumstances.

• The cost of moving lender.

 

Sometimes porting can work well.

 

In other circumstances, paying an early repayment charge and moving to another lender may still be financially worthwhile.

 

The numbers need to be compared properly.

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What If I Need to Borrow More?

 

 

Many home movers buy a more expensive property and therefore need a larger mortgage.

 

If you port your current mortgage, the additional borrowing may be arranged separately.

 

For example, you may have:

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• £200,000 remaining on your current mortgage.

• A requirement for £300,000 on the new property.

 

The lender may allow you to port the existing £200,000 product and arrange an additional £100,000 on a new mortgage product.

 

This can result in different parts of your mortgage having:

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• Different interest rates.

• Different end dates.

• Different repayment charges.

 

That can make future remortgaging more complicated, particularly if the two parts finish at different times.

 

I can help you understand the implications before you decide whether porting and topping up is the right approach.

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What If I Need to Borrow Less?

 

 

Sometimes people move to a cheaper property or use more of their equity, meaning they require a smaller mortgage.

 

If you are reducing your borrowing while still within an existing mortgage deal, early repayment charges may apply to the amount being repaid.

 

Some mortgage products allow a certain level of penalty-free repayment, but the rules vary.

 

It is therefore important to check the terms of your existing mortgage before assuming that downsizing or reducing your borrowing will be cost-free.

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Should I Stay With My Existing Lender?

 

 

Staying with your current lender may be worth considering, particularly if:

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• You have a competitive mortgage product.

• Your mortgage has a significant early repayment charge.

• Your lender is comfortable with your new borrowing requirement.

• The property you are buying fits the lender's criteria.

• You value keeping the existing deal.

 

However, staying with the same lender is not automatically the best option.

 

Your current lender may not offer the level of borrowing you now need.

 

Another lender may assess your income more favourably.

 

The overall mortgage cost may also be better elsewhere.

 

The key is to compare both routes.

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When Might a New Lender Be Better?

 

 

A different lender may be worth exploring if:

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• Your income has changed.

• You need significantly more borrowing.

• Your current lender's affordability is restrictive.

• Your mortgage deal is nearly ending.

• Your existing early repayment charge is relatively small.

• Your employment structure has changed.

• You are now self-employed.

• Another lender's criteria better suit your circumstances.

 

The lender that worked well for your last purchase may not necessarily be the lender that works best for your next one.

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Moving Home While Your Fixed Rate Is Still Running

 

 

A common concern is moving house before your fixed mortgage deal has ended.

 

This does not necessarily mean you have to wait until the fixed period expires.

 

Your options may include:

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• Porting your existing mortgage.

• Repaying the mortgage and paying an early repayment charge.

• Moving to a new lender.

• Combining your current mortgage with additional borrowing.

 

The best route depends on the cost of each option.

 

If your early repayment charge is substantial, porting may initially appear attractive.

 

However, the mortgage rate on any additional borrowing and your future remortgage options should also be considered.

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What Is an Early Repayment Charge?

 

 

An early repayment charge is a fee that may apply if you repay some or all of your mortgage during a period where the lender has imposed a repayment restriction.

 

This is common on fixed-rate mortgages.

 

The amount may depend on:

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• The mortgage balance.

• The remaining fixed period.

• The product terms.

• How much of the mortgage you repay.

 

Before deciding to move lender, it is important to calculate the cost of leaving your current mortgage.

 

Sometimes paying an early repayment charge can still make financial sense, but it should be considered as part of the overall cost.

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What If My Current Mortgage Deal Is Ending Soon?

 

 

If your mortgage deal is due to end around the same time as your move, you may have more flexibility.

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Instead of porting an existing rate, it may be possible to arrange a new mortgage for the new property.

 

This can simplify matters because the whole mortgage may sit on one product rather than being split between an old deal and additional borrowing.

 

Timing is important.

 

If your sale and purchase do not complete when expected, you may need to consider what happens to your existing mortgage in the meantime.

 

This is another reason to start planning early.

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Selling and Buying at the Same Time

 

 

Most home movers are part of a property chain.

 

This means your purchase may depend on the successful sale of your current property.

 

Your buyer may also have a property to sell, and the seller of your new home may be buying somewhere else.

 

The mortgage is only one part of that chain.

 

You will also need to coordinate with:

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• Estate agents.

• Solicitors.

• Your buyer.

• Your seller.

• Mortgage lenders.

• Surveyors.

 

Delays at one point in the chain can affect everyone.

 

Having your mortgage preparation completed early can reduce the risk of avoidable delays from your side.

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Should I Get a Mortgage Agreement Before Making an Offer?

 

 

It is usually sensible to understand your borrowing position before making an offer.

 

An Agreement in Principle may help give you a clearer picture of the level of borrowing that may be available.

 

This can be particularly important for home movers because your budget may depend on:

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• Your expected sale price.

• Existing mortgage balance.

• Available equity.

• New borrowing capacity.

 

You should remember that an Agreement in Principle is not a guaranteed mortgage offer.

 

The lender will still need to assess the full application and the property.

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What If My House Has Not Sold Yet?

 

 

Some people find the property they want to buy before receiving an offer on their existing home.

 

Whether you can proceed will depend on your circumstances.

 

If your purchase relies on money released from the sale of your existing property, the transactions will usually need to be linked.

 

This is common and forms part of a normal property chain.

 

Trying to complete the new purchase before the old property has sold can create additional financial and tax considerations, so professional advice may be needed depending on how the transaction is structured.

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Can I Keep My Existing Home and Buy Another Property?

 

 

Potentially, although this is very different from a straightforward home move.

 

You may decide to keep your current property and purchase a new home.

 

This can affect:

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• Affordability.

• Deposit requirements.

• Existing mortgage arrangements.

• Tax.

• Stamp duty.

• Whether the existing property will be rented.

• The mortgage type required.

 

If you plan to let your current property, you may need to discuss consent to let or a suitable buy-to-let arrangement, depending on the circumstances.

 

This type of transaction should be considered carefully before you make an offer on the new property.

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Moving Home With an Existing Buy-to-Let

Property

 

If you already own another property, your existing mortgages and associated costs may affect affordability for your new home.

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Lenders may assess:

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• Rental income.

• Mortgage payments.

• Other property commitments.

• Your personal income.

• Existing liabilities.

 

Criteria differ between lenders.

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If you own multiple properties, it is worth reviewing the whole picture rather than treating your residential mortgage in isolation.

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Moving Home When Self-Employed

 

 

If you have become self-employed since you bought your current property, the mortgage process may be different this time.

 

Lenders can assess self-employed income in different ways.

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Depending on your business structure, they may consider:

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• Sole trader profits.

• Partnership income.

• Salary and dividends.

• Company profitability.

• Trading history.

 

The right lender may therefore depend heavily on how your income is structured.

 

You can read more on my Self-Employed Mortgages page.

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Moving Home After Changing Jobs

 

 

A recent job change does not necessarily prevent you from getting a mortgage.

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However, lenders have different rules around:

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• New employment.

• Probation periods.

• Future contracts.

• Gaps between jobs.

• Salary increases.

• Changes of career.

 

If you know you are planning both a move and a job change, it can be useful to discuss the mortgage implications before you make major commitments.

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Moving Home With Bonus, Overtime or Commission Income

 

 

Your borrowing requirement may depend on more than your basic salary.

 

You may receive:

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• Commission.

• Overtime.

• Annual bonuses.

• Quarterly bonuses.

• Shift allowances.

• Other variable income.

 

Different lenders may assess this income differently.

 

Some may use a proportion of it.

 

Others may want to see a history over a certain period.

 

This can make lender selection important, especially if you need to maximise your borrowing capacity for the new property.

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Moving Home With Credit Commitments

 

 

Car finance, personal loans and credit cards can all affect mortgage affordability.

 

If your monthly commitments have increased since you originally bought your home, your borrowing capacity may also have changed.

 

Before making an offer, it can be helpful to look at the impact of:

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• Car finance.

• Loans.

• Credit card balances.

• Childcare.

• Student loans.

• Other regular commitments.

 

You should not automatically repay borrowing purely to improve mortgage affordability without first understanding whether doing so genuinely improves your position.

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How Long Can My New Mortgage Term Be?

 

Your new mortgage term does not necessarily need to match the term remaining on your existing mortgage.

 

For example, you may have 18 years remaining but decide that a longer term is required to make the larger mortgage affordable.

 

A longer term can reduce monthly repayments.

 

However, it may increase the total amount of interest paid over the life of the mortgage.

 

You may also decide to reduce the term if your income has increased and you want to repay the mortgage more quickly.

 

A move is therefore a useful opportunity to review your mortgage term rather than automatically carrying forward your old structure.

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Should I Use All My Equity as the Deposit?

 

 

Not necessarily. Using more equity can reduce the size of your new mortgage and may improve your loan-to-value.

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However, you may also want to retain money for:

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• Renovation.

• Furniture.

• Emergency savings.

• Moving costs.

• Other financial commitments.

 

There is a balance between reducing the mortgage and keeping sufficient cash available after completion.

 

This should form part of the wider affordability discussion.

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How Does Loan-to-Value Work When Moving Home?

 

 

Loan-to-value compares the mortgage amount with the purchase price or property value.

 

For example:

 

• Purchase price: £500,000

• Mortgage: £350,000

• Deposit/equity contribution: £150,000

 

This would represent a 70% loan-to-value mortgage.

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Different loan-to-value bands can affect the mortgage products available.

 

Your equity from your current property can therefore have a significant impact on the mortgage options for your next home.

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What Costs Should I Budget for When Moving Home?

 

 

Moving home can involve considerably more costs than simply paying the mortgage deposit.

 

You may need to consider:

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• Estate agent fees.

• Solicitor fees.

• Survey costs.

• Mortgage fees.

• Valuation fees.

• Stamp duty where applicable.

• Removals.

• Storage.

• Insurance.

• Repairs.

• Decorating.

• New furniture.

• Early repayment charges.

 

Building these costs into your budget early can prevent unpleasant surprises later.

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Should I Arrange a Survey?

 

 

The lender's mortgage valuation is primarily intended to confirm whether the property provides suitable security for the mortgage.

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It should not necessarily be treated as a full assessment of the property's condition.

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Depending on the age, condition and type of property you are buying, you may want to arrange a more detailed survey.

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This is separate from mortgage advice and you should consider the appropriate survey based on the property.

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What Happens If the Property Is Valued Lower Than My Offer?

 

 

A lender may value the property at less than the agreed purchase price.

 

This is sometimes referred to as a down valuation.

 

If that happens, you may need to consider options such as:

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• Renegotiating the purchase price.

• Increasing your deposit.

• Reviewing the mortgage structure.

• Considering another valuation route where appropriate.

 

A lower valuation can affect your loan-to-value and therefore the mortgage product available.

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New-Build Home Mover Mortgages

 

 

Moving into a new-build property can involve additional considerations.

 

Completion may be months away, and mortgage offers usually have expiry dates.

 

The timing of the application therefore matters.

 

Some lenders may also have different lending criteria for new-build properties.

 

If you are buying off-plan or purchasing a property that is still under construction, it is sensible to discuss the expected timescale early.

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Moving to a More Expensive Property

 

 

If you are moving to a significantly more expensive home, the difference in mortgage requirement may be substantial.

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For example, you may be moving from a £350,000 property to a £600,000 property.

 

Your existing equity may provide a strong deposit, but your ability to make the move will still depend on affordability for the larger mortgage.

 

I can help you calculate:

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• Expected sale proceeds.

• Available deposit.

• New mortgage requirement.

• Approximate monthly repayments.

• Potential lender affordability.

 

Understanding these figures early can make your property search much more focused.

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Downsizing and Your Mortgage

 

 

Moving home does not always mean borrowing more.

 

You may be downsizing to a cheaper property.

 

This may allow you to:

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• Reduce your mortgage.

• Repay the mortgage entirely.

• Release equity.

• Lower monthly outgoings.

 

If your current mortgage deal has early repayment charges, these still need to be considered.

 

The timing of your move can therefore affect the financial outcome.

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Why Use a Mortgage Broker When Moving Home?

 

 

Home movers often have more variables to consider than first-time buyers.

 

You already have an existing mortgage, an existing property and equity to account for.

 

There may be several possible ways to structure the new mortgage.

 

As a Mortgage Broker, I can help you compare:

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• Porting your existing mortgage.

• Staying with your current lender.

• Moving to a new lender.

• Additional borrowing.

• Early repayment charges.

• Mortgage fees.

• Affordability.

• Loan-to-value.

• Mortgage term.

• Your future plans.

 

The aim is to help you understand the full picture before choosing a mortgage.

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Moving Home Mortgage Advice Across Manchester and Cheshire

 

 

I help home movers throughout Manchester, Cheshire and surrounding areas.

 

This includes clients moving in or around:

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• Altrincham.

• Hale.

• Hale Barns.

• Bowdon.

• Sale.

• Didsbury.

• Wilmslow.

• Alderley Edge.

• Prestbury.

• Knutsford.

• Mobberley.

• Handforth.

 

I can also provide mortgage advice remotely, so you do not need to live locally for me to help.

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Common Home Mover Mortgage Mistakes

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Making an Offer Before Understanding Your Borrowing

 

Your circumstances may have changed since your last mortgage application.

 

It is better to understand your current affordability before committing to a purchase.

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Assuming Your Mortgage Can Automatically Be Ported

 

Portability is subject to lender approval and usually involves a new mortgage assessment.

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Looking Only at Your Existing Lender

 

Staying with your current lender may be suitable, but comparing alternatives can help you understand whether it is the best option.

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Ignoring Early Repayment Charges

 

An early repayment charge can materially affect the cost of changing mortgage.

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Forgetting Moving Costs

 

Estate agent fees, legal fees, surveys and stamp duty can significantly reduce the amount of equity available for your next deposit.

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Focusing Only on Monthly Repayments

 

A longer mortgage term may reduce monthly payments while increasing the total interest paid.

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Taking Out New Credit Before the Move

 

New financial commitments can affect mortgage affordability.

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Leaving the Mortgage Until Late in the Chain

 

Preparing your mortgage position early can reduce avoidable delays once you find a buyer and a new property.

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Moving Home Mortgage FAQs

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Can I move house while I am still on a fixed-rate mortgage?

 

Potentially, yes. You may be able to port your existing mortgage, or you may decide to repay it and arrange a new mortgage. Early repayment charges should be considered.

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What does porting a mortgage mean?

 

Porting usually means taking the mortgage product attached to your current home and applying it to a mortgage on your new property, subject to lender approval.

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Is porting my mortgage always cheaper?

 

No. Porting may avoid or reduce certain charges, but the overall cost should be compared with alternative mortgage options.

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Can I borrow more when I move?

 

Potentially. The additional amount will usually depend on your income, financial commitments, deposit/equity and lender affordability.

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Can I change mortgage lender when I move house?

 

Yes, subject to the cost of leaving your existing mortgage and meeting the new lender's criteria.

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Can I move home if I am self-employed?

 

Yes, subject to affordability and lender criteria.

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Visit my Self-Employed Mortgages page for more information.

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Do I need to sell my property before applying for a new mortgage?

 

Not necessarily, but your purchase may depend on the proceeds of the sale. Your mortgage application can often be prepared while the property sale is progressing.

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What happens to my mortgage when I sell my house?

 

Your existing mortgage is normally repaid from the sale proceeds on completion.

 

If you are porting a mortgage product, a new mortgage will be set up against the new property.

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Can I downsize while still in a fixed mortgage?

 

Potentially, although early repayment charges may apply if you reduce the mortgage balance significantly.

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How much equity can I use for my next home?

 

Your usable equity will depend on your property's sale price, outstanding mortgage and the costs associated with selling and moving.

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Should I speak to a broker before putting my house on the market?

 

It can be useful to do so. Understanding what you may be able to borrow can help you decide what price range to target for your next home.

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Planning Your Next Move?

 

If you are thinking about moving home, understanding your mortgage position early can make the whole process easier.

 

I can help you look at your current mortgage, available equity, borrowing capacity and the potential cost of your next purchase.

 

We can also compare whether porting your current mortgage, remaining with your existing lender or moving to a different lender may be more suitable.

 

Whether you are only starting to think about moving or you have already found your next property, get in touch and we can review your options.​