Although the number of cash property purchases rose to almost a third last year, according to Zoopla – up from around 20% across the previous five years – that means the majority of buyers still need a mortgage. So, what do you need to know and do if you currently have a mortgage and are thinking of moving?

When you sell one property and buy another, you need to reapply for the loan, even if you’re staying with the same lender and not borrowing any more money. So, if your circumstances have changed since you took out your current mortgage, or the lender has changed their criteria, that could affect how much you’re able to borrow – positively or negatively.

In addition, depending on how long you’ve had your mortgage, the interest rates and available deals may have changed a lot, which is why it’s advisable to speak to a broker who can not only access a wide range of products from across the market, but also explain the details, pros and cons of various options and help you find the most suitable one for your personal circumstances.

What happens if you have a mortgage but want to move house


If you are thinking of moving, here are five steps worth considering before you put anything in motion:

  1. Get an up-to-date market appraisal for your property. Even if you think you have an idea of what your home is worth, supply and demand at a local level will impact exactly what price you can sell for. An experienced local estate agent will be able to discuss that with you in detail.
  1. Find out exactly how much you owe on your current mortgage loan. If your property has increased in value and you haven’t borrowed any more since you took out the loan, you may be pleasantly surprised at the current loan to value (LTV). And if the house you end up buying isn’t much more expensive, you may find it easier to get approved for your next mortgage and be able to access a lower rate than you might have thought.

What happens if you have a mortgage but want to move house 2


You can find out how much you still owe by either speaking to your broker (if you have one) or contacting your lender directly and quoting your mortgage roll number. You should also have an annual statement from your lender that shows the outstanding balance.

  1. Check whether any early redemption penalties apply. If your mortgage had an initial fixed or discounted rate, you may be liable for early repayment charges if you want to redeem it within that period.
  1. Check how much you can afford to borrow for your next home. As a first step, use our Moving Home Mortgage Calculators to:
  • Get an idea of the maximum amount you could borrow for your next purchase
  • See what your monthly repayments might be
  • Once you’ve found a property, find out how much stamp duty you’ll have to pay.
  1. Speak to a qualified mortgage broker. Not all mortgages are available on the high street and your current lender or bank may not have the most competitive products, so it’s always well worth consulting a professional broker.

As well as helping you find the right mortgage for your next purchase, they can help you put together all the costs of moving and should then be able to progress your mortgage application on your behalf.

Our experts at Mortgage Scout are here to help you get moving, so get in touch at any time to discuss your current and future mortgage borrowing. Call us on 0800 144 4744 or book a telephone appointment online.

You may have to pay an early repayment charge to your existing lender if you remortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1%, but a typical fee is 0.3% of the amount borrowed.
MAB