Mortgages For Home Movers: 
Know Your Options

The Home-Movers Guide

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1. Introduction

2. Understanding Mortgages for Home Movers

3. The Mortgage Process for Home Movers

4. Affordability Considerations

5. Common Pitfalls to Avoid

6. How a Mortgage Broker Can Help

7. Conclusion

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Introduction

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Moving to a new home is an exciting milestone, but it can also feel daunting when you already have a mortgage on your current property. As a home mover in the UK, you’ll be juggling selling your current home, buying a new one, and arranging the right mortgage in between.

 

This complete guide walks you through what to expect – from handling your existing mortgage, to budgeting smartly, avoiding common mistakes, and understanding how a mortgage broker can support you. You’ll be prepared to approach your move with confidence, knowing your mortgage is sorted with minimal stress.

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Understanding Mortgages for Home Movers

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When you move house and already have a mortgage, one of the first choices is whether to port your current mortgage or get a new one.

 

Porting means transferring your existing mortgage to your new property. You stay with the same lender and keep your current interest rate and terms (useful if you have a great deal). You will need to requalify with your lender for the new property, and if you need to borrow more, that extra portion might be at a different rate.

 

The alternative is taking out a brand new mortgage for the new home (and paying off the old one). This could be with your current lender or a different lender. A new mortgage might offer better rates or more flexibility. When deciding, check for any early repayment charges on your existing loan and weigh those costs against any savings a new deal might give.

 

Also plan the timing: ideally your sale and purchase complete on the same day so the old mortgage is paid off and the new one starts immediately. If there’s a gap between selling and buying, talk to your lender about options – some may allow a short porting window; otherwise you might need a short-term solution.

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The Mortgage Process for Home Movers

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Securing a mortgage while selling one property and buying another requires coordination. Here’s an overview of the process for home movers:

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1. Set your budget and get an Agreement in Principle: Determine how much you can afford for your new home. Calculate your likely equity from selling (sale price minus your remaining mortgage and selling costs) and add any savings for your deposit. Then check how much you can borrow: use an online calculator or get an Agreement in Principle (AIP) from a lender or broker. An AIP gives you a provisional loan amount and shows sellers you’re financially prepared.

2. List your home and start house hunting: Put your current property on the market and begin searching for your new one. Having a buyer lined up for your old home makes you a stronger buyer when you make an offer on a new house. When you find the right place, then make your offer. Once the seller accepts, you can move forward knowing both your sale and purchase are in progress.

3. Choose your mortgage and apply: Decide whether to port your existing mortgage or apply for a new one. If porting, work with your current lender to apply the mortgage to the new property (including any extra amount you need to borrow). If getting a new mortgage, shop around or have a broker find you a competitive deal that fits your needs. Submit your full application with all required documents. The lender will conduct a credit check and arrange a valuation of the property you’re buying.

4. Secure your mortgage offer while legals progress: As your solicitor handles the legal work (conveyancing) for your sale and purchase, the lender processes your application. If all checks out, you’ll receive a formal mortgage offer confirming your loan. Keep in touch with your solicitor as they finalize contracts and searches.

5. Exchange contracts and complete the move: When everything is ready, you’ll exchange contracts on your sale and purchase, making them legally binding, and set a completion date. On completion day, the sale of your old home and the purchase of your new one happen back-to-back. The proceeds from your sale (plus your new mortgage funds) are used to pay for your new house. Your old mortgage is cleared, and your new mortgage begins. You hand over the keys to your old property and move into your new home on the same day.

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Throughout this process, communication is key. Coordinate with your estate agent, solicitor, and lender or broker to keep the timeline on track. Being organised (for example, having your documents ready and responding quickly to any requests) will help prevent delays.

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Affordability Considerations

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Before taking on a new mortgage, re-evaluate what’s affordable for you. Make sure the new loan will comfortably fit your financial situation.

 

Key points to consider:

Deposit (equity): The equity from your sale (plus any savings) becomes the deposit for your next purchase. A larger deposit means a smaller mortgage and often better interest rates. Calculate what percentage deposit you’ll have; if it’s below 10%, you might face higher rates or fewer choices. Consider if you can add more savings to reach a lower loan-to-value band.

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Income and outgoings: Lenders will assess your income and expenses afresh. They look at your salary or earnings, existing debts, and regular outgoings to ensure you can afford the new mortgage. To strengthen your application, try to pay down any loans or credit cards and avoid taking new credit before applying. Remember, you don’t have to borrow the maximum you’re offered. Choose a mortgage amount that leaves you with breathing room each month.

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Extra costs to budget for: Factor in the one-off expenses of moving, as these can be substantial:

• Stamp duty: Tax on property purchases – often a significant amount depending on the price.

• Selling and moving fees: Estate agent commission, solicitor fees, and removal costs.

• Mortgage fees: Any arrangement, booking, or valuation fees for the new mortgage.

• Early repayment charge: Include any penalty for paying off your old mortgage early.

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By planning for these costs, you’ll know exactly how much of your sale proceeds can go toward your new home and how much cash you need on hand. It’s wise to have a small buffer in case of unexpected expenses so that you’re not stretched too thin after moving.

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Common Pitfalls to Avoid

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Avoid these common mistakes that trip up home movers:

• No mortgage pre-approval: Making an offer without a mortgage Agreement in Principle can lead to financing issues and delays. Get an AIP early.

• Assuming porting will be automatic: Don’t assume your lender will let you port your mortgage without question. Always confirm you’re eligible to port (and for the amount you need) before relying on it.

• Delays causing offer expiry: Long chains or slow paperwork can cause your mortgage offer to expire before you complete. Keep things moving and inform your lender if there are significant delays (they might extend the offer).

• Financial changes mid-process: Changing jobs or taking on new debt (like a car loan) during the mortgage process can jeopardise your approval. Wait until after completion for major financial changes.

• Not shopping around: Sticking with your bank out of convenience might mean missing a better mortgage deal elsewhere. Compare offers or use a broker to ensure you get a competitive rate and terms.

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How a Mortgage Broker Can Help

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Handling a sale and purchase together can be complex, but a mortgage broker can make the mortgage part much easier for you. Here’s how:

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• Wide range of lenders: Brokers can access mortgage deals from many lenders, which means more chance to find a better rate tailored to you.

• Expert guidance: They can advise whether to port or switch, and which mortgage type suits you.

• Help with paperwork: Brokers handle the application paperwork and liaise with the lender, saving you time and effort.

• Smoother process: Brokers troubleshoot issues and keep things on track so your mortgage is ready on time.

• Often free to you: Many brokers don’t charge you, as they earn commission from the lender. Even if there's a fee, their support often saves you money overall.

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Conclusion

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Moving home with a mortgage might feel overwhelming, but with the right preparation it can be much smoother. Start by sorting out your budget and mortgage pre-approval early. Explore your options for porting or getting a new deal, and keep an eye on all the extra costs in your moving budget.

 

Throughout the process, maintain financial stability and respond quickly to keep everything on schedule. And remember, professional help is available – a good mortgage broker can handle the heavy lifting and guide you to the best outcome.

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With the right mortgage in place, you can focus on the excitement of settling into your new home.