Moving home? Maximise your options while keeping costs down

Your current mortgage is repaid and cleared from the proceeds of your house sale. If you need a mortgage for your new home, you’ll arrange a fresh agreement. However, if you’re mid-way through a deal, your existing lender will usually honour that original deal against your new property and waive Early Redemption Charges (ERCs).

Porting a mortgage allows you to transfer your existing borrowing amount and rate to your new property when you move mid-deal. Your lender will still assess your credit score and affordability through a full application process, but they’ll waive Early Redemption Charges (ERCs) if you pass – potentially saving you thousands. Depending on your new home’s value, you may need to ‘top up’ with additional borrowing at current rates or pay down some balance with an ERC.

Yes, you can usually take your current rate to your new home if you’re mid-way through a deal. Your lender will treat your new home as a fresh application, conducting a full valuation and reassessing your credit history and affordability. If your circumstances have weakened or they have concerns about your new property, they may decline.

The best choice depends on your Early Repayment Charges, your current rate compared to available rates, and how much more (or less) you want to borrow. A mortgage adviser can work through these factors to find the most cost-effective option for your situation.

If your mortgage isn’t portable (which is rare), you’ll need to repay your current mortgage from your sale proceeds and take out a new one for your new home. Your original mortgage offer will detail any additional fees associated with this process.

If you can ‘port’ your mortgage with your current lender then you won’t normally need to pay early repayment charges. However, this may or may not be the best strategy for you, depending on how much you want to borrow, the mortgage deal you are currently on, and what options are available to you when you move. As mortgage advisers we will always work through the lowest-cost option for you factoring in both your current deal and your plans.

The main costs when moving home include stamp duty, any planned property work, solicitor and estate agent fees, removals, and standard mortgage fees. You may also face Early Repayment Charges (ERCs) – usually a percentage of your mortgage balance that’s higher the more years you have remaining on your deal. Whether you pay these depends on whether you can ‘port’ your existing deal to your new home.

You’ll normally pay stamp duty when moving house, but it depends on your new property’s value. Use our calculator here to determine your exact liability

Yes, you can borrow more when moving if your income and credit commitments support the lender’s affordability assessment. Some lenders are more generous than others, and some are particularly supportive of existing customers. If you’re worried about affordability, talk to us – we can work out your options with both your current lender and others, or potentially advise switching lenders early to access ‘existing customer’ deals.

How much you can borrow depends on an affordability assessment based on your income, credit commitments, and age. The most generous lenders will lend up to 6x your gross annual salary (or net profit, or salary plus dividends if self-employed), but each assessment is individual. A mortgage adviser can work through the specific details for your situation.

Yes, all lenders will check your affordability again if you need a mortgage when moving home.

When you sell your house, your equity (the difference between the sale price and mortgage balance) is released to your solicitor and becomes available as a deposit for your new home. You don’t have to use all your equity for the deposit – you can keep some back as cash for moving costs or home improvements.

Yes, you need a deposit to buy a new home, but this doesn’t have to be cash or savings – your equity works just as well. After living in your home for a few years and regularly paying your mortgage, you’ll typically have built up equity (the difference between your property’s value and your mortgage). When you sell, this equity is released as cash to fund your deposit and cover other moving costs.

Getting a mortgage when moving home takes the same time as any other mortgage type. The fastest lenders can process applications in just a few days, whilst slower ones may take a month or more.

You’ll receive your equity (minus fees) when you sell. When you’re ready to complete on a new purchase, the process works similarly to when you were a first-time buyer. Some lenders allow leeway with ERCs and existing customer treatment – you’ll pay the ERCs on the sale but may be able to claim some back.

You should generally apply for a mortgage once your offer has been accepted, especially if rates are rising. Most mortgage offers last for 6 months, though some last for a year (particularly for newbuilds) and others for only 3 months. If you’re facing a long or complex chain and rates are falling, there can sometimes be a benefit in waiting to avoid duplication if the offer expires.

Yes, you can move house mid-way through a fixed rate deal. You’ll need to work through some details to minimize your costs, but a good mortgage adviser can help you navigate these.

A lower-than-expected valuation means an independent professional has valued your new home below your offer price. Take a step back and consider whether you’re still happy with your original offer – whilst valuers occasionally make mistakes, it’s rare that a second opinion or different lender changes the outcome. Start a conversation with the estate agent about negotiating a lower price, as there are no set rules and you may secure a healthy saving. If you’re getting a high loan-to-value mortgage, a lower valuation may mean the lender won’t lend enough unless the seller drops their price or you find a bigger deposit.

Whether you can keep your mortgage when moving to a cheaper property depends on your mortgage size, loan-to-value ratio, and how much cheaper the new property is. If your loan-to-value stays relatively low (for example, moving from a £100,000 mortgage on a £300,000 property to the same mortgage on a £200,000 property takes you from 33% to 50% LTV, both below the 60% threshold for cheapest deals), there should be minimal change. However, if you had a 90% LTV mortgage (£270,000 on a £300,000 property) and moved to a £200,000 property, you’d need to maintain that 90% ratio (£180,000), meaning you’d have to pay back £90,000 from your sale proceeds.

If your financial circumstances have worsened, your existing lender won’t reassess you unless you’re trying to make changes to your mortgage – you’ll keep paying your agreed amount and receive new deal offers when your fixed rate ends. However, if you can’t pass an affordability assessment due to worse circumstances, you’ll be limited to your original lender rather than accessing the whole market, and any move will be based on your current circumstances. If you’re struggling to make payments, contact your lender immediately – they have specialist teams who’ll help you work through options and do what they can to avoid default or home loss.