At IMC Mortgage Brokers, we’re here to make your journey to a new home as clear and stress-free as possible. This guide is packed with valuable information, designed to help you navigate the world of moving house with a mortgage the UK.

Who is a home mover?

If you currently own a property with a mortgage and you’re dreaming of moving to a new one, then yes, you’re a home mover! This puts you in a fantastic position, as you’ve likely built up valuable equity in your current home. This equity could become a key part of your deposit for your next property, giving you exciting options as you plan your next move.

Understanding your options for moving house with a mortgage

Could you keep your rate or find a new one? 

One of the first big questions that often pops up is about your existing mortgage. Can you take it with you, or is it time for a fresh start? There are generally two main paths for home movers, and we’re here to help you explore both:

1. Porting your mortgage: Carrying your current deal forward

Many mortgage deals are ‘portable’, which means you could have the option to transfer your existing interest rate and terms to your new property. This might sound appealing, particularly if you’re benefiting from a competitive fixed rate that’s no longer widely available. It could potentially save you money by avoiding a new, higher rate.

Things to Consider When Porting:

• • Is your mortgage portable? Not all mortgages offer this feature, so it’s really important to check your original mortgage offer or have a chat with your current lender. We can help you find this out.
  • Re-application & eligibility: Even if your mortgage is portable, you’ll still need to go through a re-application process with your existing lender. They will perform new affordability and credit checks based on their current lending criteria. If your financial circumstances have changed (perhaps your income is lower or you have more debt), they could decline your request to port. This is why getting expert advice early on is so valuable.
  • Early Repayment Charges (ERCs): If porting isn’t an option, or if you decide it’s not the best path for you, you could face an Early Repayment Charge (ERC) for ending your current mortgage deal early. These charges are typically a percentage of your outstanding mortgage balance (often between 1% and 5%) and could be quite significant. However, some mortgage types, like Standard Variable Rate (SVR) or certain tracker deals, don’t usually have ERCs. In some situations, lenders might even refund an ERC if you complete a full port within a set timeframe.

Want to dive deeper into how porting works and if it’s the right choice for your situation? Our dedicated mortgage porting guide has all the details you need.

2. Taking out a new mortgage: A fresh start

If porting isn’t an option, or perhaps a new deal simply makes more financial sense for you, the alternative is to pay off your existing mortgage (which could involve an ERC) and arrange a brand new mortgage. This might be a smart move if:

• Your current mortgage isn’t portable.
• You find a significantly better interest rate or terms elsewhere that make paying any ERC worthwhile.
• You need to borrow a considerably different amount for your new home, and a new, single mortgage offers clearer terms.
• Your existing lender’s re-application criteria for porting are too strict, or their new rates for additional borrowing aren’t competitive.

Considering a completely new mortgage for your exciting move? Our comprehensive guide, New Mortgages for Home Movers, walks you through everything you need to know about finding and securing a fresh deal for your next property.

Your financial health & budgeting

Before you start picturing yourself in your new living room, it’s always a smart move to get a crystal-clear picture of your financial situation. Understanding what you can truly afford is one of the most important steps in any house move, ensuring your new home brings joy, not financial stress. At IMC Mortgage Brokers, we’re here to help you gain that clarity right from the start.

Your deposit: Unlocking your equity

As a home mover, the equity you’ve built up in your current property is likely to be your main source of deposit for your next home. This is the difference between what your current home is worth and how much you still owe on your mortgage. The more equity you have, the larger your deposit, and this could open the door to more competitive Loan-to-Value (LTV) ratios and more attractive mortgage rates.

Affordability checks: What lenders look at

Every single lender, whether you’re porting your mortgage or applying for a brand new one, will carry out thorough affordability and credit checks. They’ll review your income, all your monthly outgoings (from existing debts to your everyday expenses), and your credit history. Lenders also often ‘stress test’ your budget, checking if you could comfortably manage repayments even if interest rates were to rise in the future.

Your credit score: Why it matters

A healthy credit score is incredibly important. It’s a key indicator for lenders of your financial reliability and plays a significant role in determining the mortgage deals you’re offered. It’s always a good idea to check your credit report to ensure it’s accurate and up-to-date before you apply for any mortgage.

Beyond the deposit: Key costs to budget For

Beyond your mortgage repayments and initial deposit, moving house with a mortgage comes with several significant additional costs you’ll need to budget for. Being prepared for these can make the whole process much smoother:

• Stamp Duty Land Tax (SDLT): This is a government tax on property purchases in England and Northern Ireland (different systems apply in Scotland and Wales). The amount you pay depends on the property’s value. Our residential Stamp Duty calculator can help with your budgeting.
• Legal Fees (Conveyancing): These cover the essential legal work involved in both selling your current property and buying your new one.
• Surveyor Fees: To get an independent report on the condition of your prospective new home.
• Estate Agent Fees: If you’re using an estate agent to sell your current property.
• Mortgage Fees: These could include arrangement fees, booking fees, or even valuation fees (though some deals come with these covered).
• Removal Costs: For professional movers or hiring a van to transport your belongings.

Want to gain a full understanding of all these potential expenses and how to budget effectively? Our comprehensive guide, Home Mover Costs & Fees Explained, covers everything you need to know.

Your journey to a new home: The mortgage process at a glance

The idea of moving can feel like a big puzzle, but don’t worry, the mortgage process generally follows a clear sequence. Here’s a quick overview of what to expect:

1. Get your financial ducks in a row: We’ll help you assess your budget, understand your equity, and explore initial mortgage options.
2. Agreement in Principle (AIP/MIP): This is an estimate of how much a lender might be willing to lend you. It’s a fantastic way to show sellers you’re serious about buying.
3. Find your dream home: The exciting part – finding that perfect place and having your offer accepted!
4. Formal mortgage application: We’ll help you prepare and submit all the necessary paperwork to your chosen lender.
5. Valuation & survey: Your lender will arrange a valuation (for their purposes). We always recommend you also consider an independent survey to check the property’s condition for your peace of mind.
6. Conveyancing: Your trusted solicitor or conveyancer will manage all the legal elements of selling your current home and purchasing your new one.
7. Mortgage offer: Once everything is approved, you’ll receive your formal mortgage offer, which is typically valid for 3 to 6 months.
8. Exchange of contracts: This is the exciting legal milestone where the sale and purchase become legally binding.
9. Completion day: Funds are transferred, keys are exchanged, and you officially step into your new home!

For a comprehensive step-by-step walkthrough of each stage, you’ll find everything you need in our detailed guide: The Process of Moving House with a Mortgage

Thinking about changing your borrowing amount?

When you move home, your borrowing needs might change significantly. You might be looking to take on a larger mortgage for a bigger property, or perhaps you’re planning to downsize and reduce your mortgage, or even become mortgage-free. At IMC Mortgage Brokers, we’re here to guide you through all scenarios.

Increasing your mortgage for a new home

Perhaps your new dream home comes with a slightly higher price tag, and you’re wondering how to bridge the gap. It’s often possible to increase the amount you borrow. If you’re porting your mortgage, your existing lender could arrange a “top-up” loan to cover the additional amount. It’s worth noting that this additional part of your mortgage might be on a different interest rate. Alternatively, taking out a completely new, larger mortgage for the full amount is another option. In both scenarios, new affordability checks will be a key part of the process.

To understand the best approach for increasing your mortgage, our dedicated guide offers clear insights: Increasing Your Mortgage When Moving Home

Downsizing your mortgage: Moving to a smaller home

For many, moving to a smaller, less expensive home is about reducing their mortgage burden, releasing equity, or even becoming mortgage-free, especially as they approach or enter retirement. While downsizing often means borrowing less, you might still need a new mortgage if the sale proceeds of your current home don’t fully cover the new purchase. Considerations like early repayment charges on your current mortgage (if you’re not porting or only partially porting), and specific mortgage products for later life borrowers, become important here.

If you’re considering a move that involves reducing your borrowing or becoming mortgage-free, our comprehensive guide will walk you through the options: Downsizing Your Mortgage: Moving to a Smaller Home

How IMC Mortgage Brokers can make your move easier

The journey of moving home with a mortgage can feel like a lot to juggle. But here’s the good news: you don’t have to do it alone! At IMC Mortgage Brokers, we’re here to make the process simple.

As your dedicated mortgage experts, we work tirelessly on your behalf. We provide clear guidance to help you understand your options, from porting to new deals, and assist with smart budgeting. With whole-of-market access, we can explore a vast range of mortgage products, potentially finding rates you might not find elsewhere.

We manage the application process from start to finish, liaising with lenders and solicitors to ensure a stress-free process. Our personalised, fair, and impartial advice is always tailored to your unique circumstances, aiming to make your home move a truly inspiring experience.

Moving home is a significant and exciting financial step, and having the right mortgage advice can make all the difference. If you’re dreaming of a new property and want to ensure a smooth transition, we’re here to help you every step of the way.

Contact IMC Mortgage Brokers today to book your free, no-obligation consultation. We’re optimistic about finding the perfect solution for you, and we’ll work diligently to assess your individual circumstances and help you plan your journey to a new home with confidence.