Find the right mortgage for your next home

How do you get a mortgage when moving home?

Moving home with a mortgage involves more steps than a first-time purchase, but the process becomes straightforward once you know what to expect. Your existing equity gives you a head start, and planning ahead can save you thousands in fees and interest. Here is a step-by-step guide to getting your mortgage sorted.

1. Step 1: Review your current mortgage. Check your existing deal for early repayment charges, your outstanding balance, and whether your mortgage is portable. Contact your lender or review your latest annual mortgage statement to get the full picture. Understanding these details will help you decide whether to port your current deal or switch to a new mortgage entirely.
2. Step 2: Get a mortgage agreement in principle. Before you start house-hunting, apply for an agreement in principle (AIP) with a lender or through a mortgage advisor. This confirms how much you could borrow based on your income, outgoings, and credit history. Most AIPs are valid for 60 to 90 days and use a soft credit search, so they will not affect your credit score. Having an AIP also shows sellers and estate agents that you are a serious, mortgage-ready buyer.
3. Step 3: Find your new property and make an offer. With your AIP confirming your budget, start viewing properties that fit your price range. When you find the right home, make an offer. Estate agents take AIP-backed offers more seriously, which can give you an edge in competitive situations.
4. Step 4: Submit your full mortgage application. Once your offer is accepted, submit a full mortgage application with your chosen lender. They will carry out a detailed affordability assessment, verify your income documents, check your credit file, and arrange a property valuation. This stage typically takes two to four weeks, depending on the lender and the complexity of your application.
5. Step 5: Complete the legal process and exchange contracts. Your solicitor or conveyancer handles property searches, reviews the contract pack, and coordinates with the seller's legal team. After everything checks out and your mortgage offer is confirmed, you exchange contracts and agree a completion date. On completion day, the funds transfer through the chain and you collect the keys to your new home.

What kind of mortgage do you need when moving home?

The right mortgage for your move depends on your financial situation, the value of your next property, and how much equity you have built up in your current home. Here are the most common scenarios and what each one means for your mortgage options.

Upsizing to a larger property

If you are moving to a bigger or more expensive home, you will probably need to increase your borrowing. The equity from your current property acts as your deposit, but you may need additional savings to bridge the gap between what you owe and what the new home costs. A larger loan means higher monthly payments, so factor in your household budget carefully before committing. Our upsizing guide walks you through the numbers and explains how to make the finances work.

Downsizing to a smaller property

Moving to a smaller or less expensive home can release significant equity and reduce your monthly payments. Some homeowners use this opportunity to become mortgage-free entirely, while others reinvest the freed-up capital. Be aware of early repayment charges on your current deal, as these can reduce the financial benefit of downsizing. Read our downsizing guide for a full breakdown of the costs and savings involved.

Porting your existing mortgage

Porting allows you to transfer your current mortgage deal to a new property, keeping the same rate and terms. This is particularly appealing if you are on a competitive fixed rate, since you avoid paying early repayment charges. However, your lender will still reassess your affordability based on your current income and outgoings. If you need to borrow more than your existing mortgage balance, you may end up with two mortgage products running side by side at different rates. Our porting guide explains how this works in practice and when it makes financial sense.

Buying before you sell

Finding your dream home before selling your current property creates a timing gap that needs financing. Bridging loans can cover this short-term shortfall, but they carry higher interest rates, typically between 0.5% and 1.5% per month. They are best treated as a last resort. Coordinating your sale and purchase to complete on the same day is the most cost-effective approach, and a good estate agent or solicitor can help you manage this timing.

What types of moving home mortgages are there?

When you move home, you can choose from several mortgage types. Each works differently and suits different financial priorities and risk appetites. Here is a comparison of the main options available to home movers in the UK.

What fees and costs might you have to pay when moving home?

Moving home involves several costs beyond your mortgage payments. Understanding these upfront helps you budget accurately and avoid unwelcome surprises on completion day. Here is a breakdown of the typical fees you should expect.

How much can you borrow when moving home?

The amount you can borrow depends on several factors that lenders assess during your application. Most lenders offer between 4 and 4.5 times your annual household income, though some specialist lenders extend this to 5 or even 5.5 times for higher earners or those with minimal outgoings. Your existing equity plays a significant role too, since a larger deposit reduces both the amount you need to borrow and the interest rate you qualify for. Here are the key factors that determine your borrowing limit.

• Your household income: Lenders use your combined gross annual income as the starting point for their calculation. Overtime, bonuses, and commission may be included, though many lenders only count 50% of variable income. Self-employed applicants typically need two to three years of accounts or tax returns.
• Your existing debts and commitments: Credit card balances, car finance, student loans, childcare costs, and other regular commitments all reduce how much you can borrow. Lenders stress-test your affordability by checking you could still make payments if interest rates rose by several percentage points.
• Your equity and deposit size: The equity from selling your current home forms your deposit for the next purchase. A larger deposit means you need to borrow less, and it gives you access to lower interest rates. Even a small increase in deposit can push you into a more competitive loan-to-value band.
• Your loan-to-value ratio (LTV): LTV is the percentage of the property value you are borrowing. An LTV of 75% or lower typically unlocks the best rates on the market. At 90% LTV or above, your options become more limited and rates increase noticeably.
• Your credit history: A strong credit score gives you access to more lenders and better deals. Late payments, defaults, or county court judgements (CCJs) in the past six years can restrict your options, though specialist lenders cater to applicants with impaired credit.
• Your age and mortgage term: Most lenders want the mortgage repaid before you reach 70 to 75 years old. If you are over 50, this may limit the maximum term available, which in turn affects how much you can borrow and your monthly payment amount.
• The property type and condition: Standard freehold houses and purpose-built flats are easiest to mortgage. Non-standard construction, properties with short leases (under 70 years remaining), or homes above commercial premises can limit your lender options and borrowing amount.

How can you find a better moving home mortgage deal?

A small difference in interest rate can save you thousands over the life of your mortgage. These five practical tips will help you secure the best deal available for your circumstances when moving home.

1. Tip: Compare the total cost, not just the headline rate. A mortgage with a low rate but a £1,999 arrangement fee can cost more over the deal period than a slightly higher rate with no fee. Add up the total of all monthly payments plus every fee to make a true like-for-like comparison. For a typical two-year fix, this is the only reliable way to judge which deal is actually cheaper.
2. Tip: Maximise your deposit percentage to unlock better rates. Even a small increase in your deposit can push you into a lower LTV band, unlocking cheaper rates. For example, moving from 85% LTV to 80% LTV can reduce your rate by 0.2% to 0.4%, which on a £250,000 mortgage saves you £500 to £1,000 per year. Selling at the right price and timing your move carefully can help you hit the next threshold.
3. Tip: Strengthen your credit profile before applying. Check your credit report with all three main agencies (Experian, Equifax, and TransUnion) for errors and pay down outstanding balances at least three months before applying. Register on the electoral roll at your current address if you have not already, as this boosts your score with most credit reference agencies. Close any unused credit accounts that you no longer need.
4. Tip: Time your move to avoid early repayment charges. If your fixed rate or discounted period is ending within the next three to six months, waiting until it expires before completing your move can save you thousands. Early repayment charges of 2% to 5% on a £200,000 balance amount to £4,000 to £10,000. Most lenders let you apply for a new deal up to six months before your current one ends, so you can have everything lined up without paying the penalty.
5. Tip: Use a whole-of-market mortgage advisor. A whole-of-market advisor compares deals from across the entire lending market, including exclusive products not available directly from lenders or on comparison websites. They know which lenders are most likely to approve your application based on your specific circumstances, and they handle the paperwork and chase the lender on your behalf. This saves you time and often secures a better rate than searching on your own.

How does the moving home mortgage process work?

Understanding each stage of the moving home process helps you plan your timeline and avoid costly mistakes. Here is what happens from your first decision to move through to collecting the keys.

Deciding to move and setting your budget. Start by getting your current property valued by two or three local estate agents. Check your mortgage balance on your latest statement or by calling your lender. The difference between these two figures is your available equity. Subtract estimated selling costs, including estate agent fees (1% to 3% plus VAT), conveyancing (£800 to £1,500 plus VAT), and any early repayment charges. The remaining amount, combined with any additional savings, forms your deposit for the next purchase.

Getting mortgage-ready. Apply for a mortgage agreement in principle before listing your property. This confirms your borrowing power and positions you as a credible buyer. Gather your payslips from the past three months, bank statements, proof of identity, and proof of address, as you will need all of these for the full application later. If you are self-employed, prepare your SA302 tax calculations and tax year overviews from the past two to three years.

Marketing your property and searching for your next home. List your home with an estate agent and begin viewing properties within your confirmed budget. Many buyers and sellers try to align timings so they can exchange and complete on both transactions simultaneously. This approach avoids the cost and disruption of temporary accommodation or bridging finance.

Making and receiving offers. When you find the right property, make an offer based on your budget and comparable local sales. Once your offer is accepted, instruct a solicitor or conveyancer to begin the legal work on both your sale and purchase. At this point, submit your full mortgage application to your chosen lender with all supporting documents.

Surveys, searches, and legal checks. Your lender arranges a property valuation on the home you are buying, while your solicitor carries out local authority searches, environmental checks, drainage searches, and title verification on both properties. Commission an independent survey, such as a HomeBuyer Report or full building survey, for a detailed assessment of the property's condition. These checks typically take four to six weeks to complete.

Exchange of contracts and completion. Once all checks are satisfactory and your mortgage offer has been formally issued, you exchange contracts with both your buyer and your seller. This is the point where the transaction becomes legally binding, and pulling out after exchange means forfeiting your deposit. Completion usually follows one to four weeks later, depending on what all parties agree. On completion day, the mortgage funds release, the money transfers through the chain, and you collect the keys to your new home.