Moving home raises an important question about your mortgage: does it simply come with you, or do you need a new one? The answer affects your costs and your options. This guide explains moving home and your mortgage in plain English: your choices, how affordability is reassessed, and the costs to plan for.
Your mortgage does not automatically move
When you move, your mortgage does not automatically transfer to your new home. You either take your existing deal with you, known as porting, or you repay your current mortgage and take out a new one. Which route is best depends on your deal, your circumstances and the new property. Understanding both options helps you move without paying more than you need to, as the rest of this guide explains.
Option one: port your mortgage
Porting means taking your existing mortgage deal to your new home, keeping the same rate and terms, subject to the lender agreeing. It can let you avoid an early repayment charge and keep a good rate, as our guide to porting a mortgage explains. The lender reassesses your circumstances and the new property, so porting is not guaranteed, but where it works it can be a cost-effective way to move.
Option two: a new mortgage
Alternatively, you repay your current mortgage and take out a new one for the new property, either with your existing lender or a different one. This may trigger an early repayment charge if you leave your deal early, as our guide to early repayment charges explains, but it opens up the whole market and the latest deals. Whether porting or a new mortgage is cheaper depends on your situation, as covered in our comparison guide.
Borrowing more if you are trading up
If you are moving to a more expensive home, you will usually need to borrow more, either by porting your deal and adding a top-up, or with a larger new mortgage, as our guide to borrowing more when you move explains. The lender will assess whether you can afford the larger amount. Moving up the ladder often means a bigger mortgage, so affordability is central to how much home you can buy.
Affordability is reassessed
Whichever route you take, the lender generally reassesses your affordability when you move, checking your income, outgoings and credit against the mortgage you need. This matters because your circumstances may have changed since you first borrowed. If your income has fallen or your outgoings risen, you may be able to borrow less, so it is worth understanding your position before you commit to a move, much as a first-time buyer would.
The costs of moving
Moving home brings several costs beyond the mortgage: stamp duty on the new property, legal and conveyancing fees, a survey, estate agent fees on your sale, removals, and possibly mortgage fees, as our guide to stamp duty when moving explains. These can add up to a significant sum, so budgeting for the full cost of moving, not just the new mortgage, is essential to avoid a shortfall.
Buying and selling at once
Most movers buy and sell at the same time, which adds complexity, since the two transactions usually need to be coordinated, often completing on the same day. This is where chains form, and where timing matters, as our guide to buying and selling at the same time explains. Managing both sides of the move together is one of the bigger challenges, and good planning helps it go smoothly.
Letting instead of selling
Some people keep their current home and let it out rather than selling, buying a new home to live in. This is known as let-to-buy and involves two mortgages, as our guide to let-to-buy explains. It can suit those who do not want to sell, but it adds the responsibilities of being a landlord and an extra property to finance, so it is worth understanding fully before choosing this route.
Getting advice
Because moving involves choices about porting versus a new mortgage, borrowing more, and coordinating a sale and purchase, advice can be valuable. A mortgage broker can work out the cheapest way to finance your move and handle much of the process. Given the sums and the complexity, getting the mortgage side right helps your move go smoothly and keeps your costs down, as our other moving guides explain.
Same lender or a different one?
When you take a new mortgage to move, you can stay with your current lender or switch to another. Staying put can be simpler, while switching opens up the whole market and the latest deals. If you port, you stay with your current lender by definition. Weighing whether to stay or switch, much as you would at a remortgage, helps you find the best deal for your move.
Moving and your interest rate
Moving home is a natural moment to review your rate. If you port, you keep your existing rate on your current balance. If you take a new mortgage, you get today's rates, which may be better or worse than your current deal. Considering where rates are, and whether your current deal is worth keeping, helps you decide between porting and a new mortgage, as our guide to porting versus a new mortgage explains.
When selling and buying do not align
Ideally your sale and purchase complete together, but sometimes they do not align, and you may need to buy before selling or vice versa. Options such as bridging finance or renting in between can cover a gap, though each has costs, as our guide to bridging loans explains. Most movers aim to complete both together, but it is worth knowing the alternatives if the timing proves difficult.
Get mortgage-ready before you start
Before you start house-hunting, it is worth getting your mortgage position clear: knowing roughly how much you can borrow, whether your current deal is portable, and what any early repayment charge would be. This lets you move quickly and confidently when you find a home, as our guide to getting mortgage-ready to move explains. Preparation makes the whole move smoother and helps you act decisively.
The reassuring point is that moving home with a mortgage is a well-trodden path. By understanding whether to port or take a new mortgage, knowing your borrowing and any early repayment charge in advance, and budgeting for the full cost of the move, you can approach it with confidence. A broker can handle much of the detail, leaving you to focus on finding and settling into your next home.
In short
When you move, your mortgage does not automatically come with you: you either port your existing deal to the new home or take out a new mortgage. Trading up usually means borrowing more, and the lender reassesses your affordability either way. Budget for the full costs of moving, including stamp duty, and plan for buying and selling at once. Advice helps you find the cheapest, smoothest way to move.
Where to get help and next steps
Read our guides to porting a mortgage, buying and selling at the same time, and borrowing more when you move. Our guide to selling your home and your mortgage is also worth a read. This is general information, not mortgage or financial advice.