This comprehensive guide breaks down every stage of getting a mortgage for your next home, from initial checks to moving day. We’ll clarify how the process differs for home movers compared to first-time buyers or remortgaging your current property, shed light on typical timelines, and equip you with insights to mitigate potential delays, ensuring a smoother journey with IMC Mortgage Brokers by your side.

What is the moving house mortgage process?

When moving house with a mortgage, your mortgage journey is distinct in several key ways:

• Compared to a first-time buyer:
  • Simultaneous sale & purchase: You’re often managing the sale of your current property at the same time as buying a new one, meaning two sets of legal work and coordinating a “chain” of transactions. First-time buyers typically only focus on the purchase.
  • Existing mortgage decisions: You need to decide what to do with your current mortgage – either “port” it to the new property, or redeem it and take out a completely new one. This involves assessing potential Early Repayment Charges (ERCs). First-time buyers are simply taking out their first mortgage.
  • Equity as deposit: Your ‘deposit’ for the new home often comes from the equity released from your current property, rather than fresh savings.
  • More options & stronger position: Having an established financial history and potentially more equity can often give you access to a wider range of mortgage products and potentially better rates than a first-time buyer.
  • Stamp Duty: You won’t benefit from the Stamp Duty relief offered to first-time buyers, so you’ll pay standard rates based on the value of your new home.
• Compared to simply remortgaging your current house:
  • Change of property: The fundamental difference is that you are buying a new property, not just changing the mortgage deal on your existing one.
  • Double conveyancing: You’ll incur legal fees for both selling your old property and buying your new one, whereas a remortgage only involves legal work for the loan transfer on a single property.
  • Property chain risk: Moving home inherently carries the risk of being in a property chain, which can cause delays or collapses. A remortgage is usually a simpler, direct transaction between you and a lender.
  • Additional costs: Beyond mortgage fees, a home move involves estate agent fees, removal costs, and potentially new survey fees for the property you’re buying, which are not typically part of a standard remortgage.

Here’s a step-by-step guide to what you can expect:

Step 1: Initial budgeting & affordability checks (with your broker)

Before you even start house hunting, it’s wise to understand what you can truly afford.

• Assess your current position: What’s your current home worth? How much equity do you have? What’s your outstanding mortgage balance and any potential ERCs?
• New borrowing needs: How much will your next property cost, and how much additional borrowing (if any) will you need?
• Affordability: A mortgage broker will conduct a thorough assessment of your income, outgoings, and financial commitments (including pension income if applicable) to determine how much a lender might be willing to lend you for the new property.
• Broker’s role: Your IMC Mortgage Broker will provide personalised advice, comparing your existing mortgage options (like porting) against new deals across the whole market to find the most cost-effective solution for your unique circumstances.

Step 2: Getting an Agreement in Principle (AIP/DIP/MIP)

Once you have a clearer idea of your budget, your broker can help you secure an Agreement in Principle (AIP), also known as a Decision in Principle (DIP) or Mortgage in Principle (MIP).

• What it is: This is a provisional offer from a lender, indicating how much they might be willing to lend you, based on a basic assessment of your finances. It often involves a ‘soft’ credit check, which won’t impact your credit score. However, some lenders will carry out a ‘hard’ credit check which can temporarily change your credit score. It is important not to carry out too many ‘hard’ credit scores as it could affect your borrowing potential.
• Why it’s crucial for home movers: An AIP shows estate agents and sellers that you are a serious and credible buyer, giving you an advantage when making offers, especially if you’re part of a competitive property chain.

Step 3: Property search & offer acceptance

With your AIP in hand, you can confidently begin your property search.

• Finding your next home: Explore properties within your confirmed budget.
• Making an offer: Once you find the right property, you’ll make an offer, ideally through the estate agent. Ensure your offer is “subject to survey and contract.”
• Offer accepted: Once your offer is accepted, both you and the seller will typically instruct solicitors.

Step 4: Full mortgage application (documents required)

This is where your AIP turns into a concrete application.

• Comprehensive assessment: The lender will conduct detailed affordability checks, a ‘hard’ credit check (which will be visible on your credit file), and request extensive documentation.
• Documents typically required for home movers:
  • Proof of identity (passport/driving license)
  • Proof of address (utility bills, bank statements)
  • Proof of income (payslips, P60, tax returns if self-employed)
  • Bank statements (typically 3–6 months)
  • Details of your current mortgage (statement, redemption statement)
  • Proof of deposit (often from the sale of your existing property, or savings)
  • Details of any other loans or credit commitments
  • Information about the property you are buying and selling.
• Broker’s role: Your IMC Mortgage Broker will help you complete the application accurately, submit it to the most suitable lender, and handle communications, saving you time and stress.

Step 5: Valuation & survey

The lender will arrange a valuation of the property you intend to buy to ensure it’s worth the price you’re paying and that it provides sufficient security for their loan.

• Mortgage valuation: This is for the lender’s benefit.
• Optional surveys: It’s highly recommended to arrange your own independent survey (e.g., RICS Home Survey Level 2 or RICS Home Survey Level 3). This checks for hidden defects and structural issues, protecting your investment. If issues are found, your solicitor may renegotiate the price or request repairs.

Step 6: Conveyancing process (legal checks & solicitor’s role)

Your solicitor (or licensed conveyancer) handles all the legal aspects of transferring property ownership. This is particularly intricate for home movers due to the interconnected nature of the sale and purchase.

• Your solicitor should:
  • Receive draft contracts from the seller’s solicitor.
  • Conduct property searches (local authority, environmental, water & drainage, Chancel Repair Liability) to uncover any issues or future plans affecting the property.
  • Review all legal documents, including the title deeds.
  • Raise enquiries with the seller’s solicitor based on searches and documents.
  • Handle the legal aspects of your existing property sale.
  • Liaise with your mortgage lender.

Step 7: Mortgage offer received

Once the lender is satisfied with your application, affordability, and the property valuation, they will issue a formal mortgage offer.

• Review carefully: This document is legally binding and outlines your loan amount, interest rate, terms, and any specific conditions.
• Validity: Mortgage offers typically have a validity period (e.g., 3-6 months). If your move takes longer, you might need an extension or even a new offer, which could involve re-assessments.
• Broker’s role: Your broker will review the offer with you to ensure it matches what you applied for and is still the most suitable option.

Step 8: Exchange of Contracts

This is the pivotal moment when the sale and purchase become legally binding.

• Deposit payment: Through your solicitor, you will transfer your deposit (usually 10% of the purchase price) to the seller’s solicitor.
• Legally binding: Once contracts are exchanged, neither party can pull out without incurring significant financial penalties.
• Completion date set: A completion date (moving day) is mutually agreed upon and legally fixed at this point, usually 1–2 weeks after exchange, but this can be longer if part of a chain.
• Crucial for movers: In a chain, all parties at each link in the chain usually exchange contracts simultaneously.

Step 9: Completion & moving day

The final step in your home moving journey!

• Funds transfer: On completion day, your solicitor transfers the remaining balance of the purchase price (including your mortgage funds) to the seller’s solicitor.
• Keys: Once funds are received by the seller’s solicitor, the keys to your new home are released, usually by the estate agent.
• Official ownership: You officially own your new home and can move in!

Timeline expectations for home movers

The home moving process can vary greatly, especially if you’re in a chain. Here’s a realistic estimate for each stage:

• Initial budgeting & AIP: 1–2 weeks (could be quicker with a prepared broker)
• Property search & offer: 2–12 weeks (highly variable)
• Full mortgage application: 2–8 weeks (depending on lender and complexity)
• Valuation & survey: 1–3 weeks (from instruction to report)
• Conveyancing (from instructing solicitor to exchange): 12–16 weeks (could be longer with complex chains or issues)
  • Searches: Can vary from a few days to several weeks depending on the local authority.
• Mortgage offer validity: Typically 3–6 months.
• Exchange to completion: 1–2 weeks (could be simultaneous, or longer if agreed)

Total average time for a chained home move: Approximately 3–6 months from offer acceptance to completion. Chain-free moves (e.g., buying a new build or an empty property) might be quicker.

Potential delays and how to mitigate them

Moving home can be fraught with unexpected hiccups. Being aware of common delays can help you navigate them more smoothly:

• Property chain breaks: The most common cause of delay or collapse. If one party pulls out or is delayed, it impacts everyone.
  • Mitigation: Choose buyers who are chain-free (e.g., first-time buyers or cash buyers) if possible. Ensure clear communication via your estate agent and solicitor. Consider short-term rental if your sale completes before your purchase.
• Slow conveyancing: Delays in local authority searches, slow responses from other solicitors, or legal complexities with the property title.
  • Mitigation: Appoint an experienced and proactive solicitor early. Have all your personal paperwork ready for them. Consider paying for ‘personal searches’ if local authority searches are known to be slow in your area.
• Mortgage application issues: Unexpected hurdles during underwriting, property valuation coming in low, or delays in submitting required documents.
  • Mitigation: Work with a mortgage broker who knows lender criteria and can prepare your application meticulously. Provide all requested documents promptly and accurately.
• Survey findings: A survey might uncover significant issues (e.g., damp, structural problems) that require further investigation, renegotiation of the price, or even withdrawal.
  • Mitigation: Get a comprehensive survey. Be prepared to negotiate or walk away if issues are too costly or complex.

Your IMC Mortgage Broker is your central point of contact throughout this journey. We work closely with estate agents and solicitors to proactively identify and help resolve issues, keeping your home move on track.

Ready to start your home moving journey with confidence? Contact IMC Mortgage Brokers today for a free, no-obligation consultation. We’re here to guide you through every stage of securing the right mortgage for your next home.