Moving Home

Moving home involves two connected financial transactions when you are selling one property and buying another. As well as choosing the new home, you may need to coordinate a property sale, arrange a mortgage, manage a chain, complete legal work and budget for several one-off costs.

The short answer

Before marketing the existing property or making an offer on a new home, establish the likely sale proceeds, review the current mortgage and build a realistic moving budget. If you already have a mortgage, your options may include porting the existing product, arranging a new mortgage, or combining a ported product with additional borrowing.

At a glance

Sale

Understand the likely sale price, mortgage redemption balance and selling costs.

Mortgage

Compare porting the existing product with arranging a new mortgage.

Purchase

Allow for legal work, surveys, property tax, moving costs and contingency.

Important

The mortgage principles in this guide apply broadly across the UK, but the legal process, property taxes, terminology and point at which the parties become legally committed differ between England, Wales, Scotland and Northern Ireland. Your solicitor or conveyancer will explain the process applying to the property location.

Start with the complete moving budget

A moving budget should bring together the sale, mortgage and purchase. Consider:

The realistic sale price of the existing property.
The current mortgage balance and any other secured borrowing.
Any early repayment charge.
Estate-agent and legal costs.
The deposit and property tax for the new purchase.
Survey, valuation, mortgage and adviser fees.
Removal, storage and immediate repair costs.
Emergency savings and contingency.

Understanding your net sale proceeds

The equity shown in a property is not necessarily the amount available as a deposit. The final redemption figure may include interest and charges in addition to the balance on the latest statement.

Calculation	Amount
Expected sale price	£
Less current mortgage and other secured borrowing	£
Less any early repayment charge	£
Less estate-agent, legal and associated costs	£
Estimated net sale proceeds	£

MMPE guidance

Obtain an up-to-date mortgage statement and establish the likely early repayment charge before committing to the next purchase. Treat the sale price as an estimate until completion.

Porting your existing mortgage

Porting may allow you to transfer an existing mortgage product or rate to a mortgage secured against the new property. The current mortgage is normally repaid and a new mortgage is arranged under the lender's porting provisions.

Even where a product is portable:

A new application will normally be required.
Affordability and creditworthiness may be reassessed.
The new property must meet the lender's requirements.
The requested loan must meet current criteria.
The lender may decline the application.

Portability is an option to apply for, not a guarantee.

Porting versus taking a new mortgage

Port the existing product

This may be worth considering where retaining the current product provides a meaningful benefit. Consider the lender's current requirements, property acceptability, additional borrowing, fees, product end dates and future flexibility.

Arrange a new mortgage

This involves repaying the existing mortgage and arranging a new mortgage, potentially with another lender. It may provide wider product choice and allow borrowing to be restructured, but costs and early repayment charges may apply.

Neither route is automatically better. Compare the current mortgage, charges, additional borrowing, total cost and future plans together.

Moving to a more expensive or less expensive property

Where more borrowing is needed, additional borrowing alongside a ported product may have a different rate, fee, product period and early repayment charge. Different end dates can complicate a future review. Ask how the complete mortgage will operate, not only how the additional amount will be priced.

Where a smaller mortgage is needed, some existing borrowing may be repaid. An early repayment charge could apply to the amount not ported, after taking account of any charge-free allowance and lender conditions.

Early repayment charges and completion timing

If the sale and purchase do not complete together, the existing mortgage may be repaid before the new mortgage begins. An early repayment charge may therefore be payable.

Some lenders may refund all or part of the charge where a qualifying mortgage completes within their permitted period, subject to their conditions. Do not assume every lender uses a waiver form or that a full refund will apply.

Confirm the conditions first

Confirm the lender's porting, early repayment charge and refund conditions before making a legally binding commitment. Ensure sufficient funds are available if a charge must be paid before any eligible refund.

Agreement in Principle and affordability

An Agreement in Principle, also called a Decision in Principle, is an initial indication of potential borrowing based on limited information and usually a credit search. It is not a mortgage offer and does not guarantee acceptance of the applicant or property.

Lenders may assess income, employment, debts, childcare, maintenance, household expenditure, service or estate charges, mortgage term, expected retirement and foreseeable changes. The maximum a lender may offer is not necessarily the amount you should borrow.

Preparing the existing property for sale

Useful documents may include:

Identity and title information.
A valid Energy Performance Certificate where required.
Planning permissions and Building Regulations documents.
Guarantees, warranties and installation certificates.
Documents for extensions or alterations.
Solar-panel or renewable-energy agreements.
Boundary, access and rights-of-way information.
Leasehold management and service-charge information.

Tell the estate agent and conveyancer about known matters that could affect the sale.

Leasehold properties

Leasehold transactions can require information about lease length, ground rent, service charges, planned works, buildings insurance, management arrangements, restrictions and building safety.

A management information pack may be needed from the freeholder or managing agent. Requesting required information early may reduce avoidable delay.

The sale and purchase process

The precise legal process differs across the UK. A broad journey is:

Review the existing mortgage and porting provisions.
Establish the moving budget and likely net sale proceeds.
Prepare the existing property for sale.
Obtain an Agreement in Principle where appropriate.
Market the existing property and search for the next home.
Agree the proposed sale and purchase.
Submit the full mortgage application.
Complete legal checks and arrange an appropriate survey.
Review the mortgage offer, legal report and survey.
Reach the binding legal stage applying in the relevant UK nation.
Complete the sale, purchase and move.

Understanding the property chain

A property chain is a series of linked sales and purchases. Delays may arise from mortgages, surveys, legal enquiries, leasehold paperwork or a change elsewhere in the chain.

Treat proposed exchange and completion dates as provisional until the legal representatives confirm that the required work is complete.

Conveyancing and legal work

The solicitor or licensed conveyancer manages the legal transfer of ownership. This can include reviewing title, contracts, searches, leasehold information, enquiries, restrictions, mortgage conditions, funds and registration.

Mortgage advice does not replace conveyancing, legal or tax advice.

Valuation and independent survey

The lender's valuation is primarily for mortgage purposes. It is not a detailed condition survey prepared for the buyer.

RICS Level 1 Home Survey

A concise assessment generally intended for conventional properties in satisfactory condition.

RICS Level 2 Home Survey

A more detailed assessment generally intended for conventional properties, with information about condition, defects and further investigation.

RICS Level 3 Home Survey

The most detailed level, often appropriate for older, altered, unusual, complex or visibly poor-condition properties, or where significant work is planned.

Ask an appropriately qualified surveyor which level is suitable.

Responding to survey findings

A survey may identify urgent defects, structural movement, damp, roof issues, outdated services, alterations or a need for specialist reports.

Before deciding what to do:

Ask the surveyor to explain the significance.
Obtain specialist reports or quotations where recommended.
Ask the conveyancer about legal implications.
Tell MMPE if the property or price changes.
Confirm whether the lender needs further information.

Property tax

Stamp Duty Land Tax applies in England and Northern Ireland, Land Transaction Tax in Wales, and Land and Buildings Transaction Tax in Scotland.

Rates, thresholds, supplements and reliefs can change. Obtain current guidance from the conveyancer or tax adviser.

Costs to include

Cost area	What to check
Property tax	The tax applying in the relevant UK nation, including supplements and reliefs.
Estate agent	Fee basis, VAT, sole-agency period and withdrawal terms.
Legal work	Sale and purchase fees, searches, registration, transfers and leasehold charges.
Mortgage	Product, valuation, adviser and account fees, plus any early repayment charge.
Survey	The appropriate survey level and specialist reports.
Insurance	Buildings, contents, moving and unoccupied-property requirements.
Moving	Removals, packing, storage, cleaning and temporary accommodation.
Contingency	Additional legal work, delays and unexpected property issues.

Some costs may remain payable if the transaction does not complete.

Buying before selling and bridging finance

Bridging finance is specialist short-term borrowing that may be considered where a purchase must complete before sale proceeds are available. It is normally secured against property and requires a credible repayment or exit strategy.

Interest, arrangement, valuation, legal and adviser costs may apply. If the proposed sale or refinance is delayed, the balance and overall cost can increase.

Before proceeding, consider the realistic sale price and timescale, exit strategy, effect of delays, ability to support both properties, insurance, tax, legal issues and alternatives.

Buildings and contents insurance

Confirm with the conveyancer and lender when buildings insurance must begin. For many freehold purchases in England and Wales, cover is required from exchange, but leasehold, new-build and regional arrangements may differ.

Check rebuild cost, unoccupancy, renovation, contents in transit, removal-company cover, leasehold arrangements and relevant flood, subsidence or claims history.

Review protection when moving home

Moving home may change the mortgage balance, term, household expenditure, savings and family responsibilities. It is an appropriate time to consider life assurance, serious illness cover, income protection, workplace benefits, trusts, beneficiaries, wills and home insurance.

MMPE's separate protection review considers the mortgage, income, expenditure, dependants, savings, workplace benefits and existing policies to identify strengths, potential gaps and priorities.

Do not cancel existing protection until any replacement has been accepted, placed on risk and confirmed suitable.

Tell us if circumstances change

Tell MMPE promptly about changes to employment, income, working hours, credit commitments, deposit, sale proceeds, purchase price, property, household circumstances, residency status, expected completion date or payment history.

A material change may require the lender to reassess the application.

Protect yourself from payment fraud

Verify bank details using a known and trusted contact method.
Do not rely solely on an email requesting payment.
Speak to the conveyancer before sending a large transfer.
Check account names and payment details carefully.
Be cautious about urgent or unexpected requests.
Do not disclose unnecessary transaction information publicly.

Moving-home checklist

Before marketing

Confirm the mortgage balance and early repayment charge.
Check porting provisions.
Estimate likely net sale proceeds.
Establish a comfortable purchase budget.
Prepare property and leasehold documents.
Instruct an estate agent and conveyancer where appropriate.

Before offering

Obtain an Agreement in Principle where appropriate.
Include buying, selling and moving costs.
Allow for property tax and contingency.
Consider the property type and survey required.
Explain the chain position clearly.

After the offer is accepted

Submit the mortgage application.
Instruct the conveyancer promptly.
Arrange an appropriate survey.
Provide evidence quickly and accurately.
Review porting and early repayment charge arrangements.

Before becoming legally committed

Read the mortgage offer and legal report.
Understand the survey findings.
Confirm the deposit and funds required.
Check when insurance must start.
Confirm proposed dates are achievable.
Avoid new borrowing without discussing the effect.

Questions to ask

What are the likely net proceeds from the sale?
Can the existing product be ported?
What affordability and property checks apply?
Will an early repayment charge be payable or refundable?
How will additional borrowing be arranged?
Will mortgage parts have different end dates?
What payment remains comfortable?
Have all purchase, sale and moving costs been included?
What survey is appropriate?
What happens if sale and purchase do not complete together?
What contingency will remain after completion?
Which protection arrangements should be reviewed?

MMPE's approach

At My Mortgage & Protection Experts, we consider the sale, mortgage and purchase together.

We will:

Understand your objectives, budget and future plans.
Review the existing mortgage and early repayment charge.
Establish the likely loan requirement.
Compare porting with suitable new mortgage options.
Assess affordability and financial resilience.
Consider the deposit and source of funds.
Review relevant property characteristics.
Explain rates, fees, restrictions, risks and alternatives.
Support the mortgage application through to completion.
Offer a separate review of protection and insurance needs.

The right strategy is not simply the mortgage with the lowest headline rate. It should provide an appropriate balance of affordability, overall cost, certainty and flexibility while supporting a well-planned move.

Glossary

Porting: Applying to transfer an existing mortgage product or rate to a mortgage on a new property with the same lender.
Early repayment charge: A charge that may apply when all or part of a mortgage is repaid during a specified period.
Redemption figure: The amount required to repay the mortgage on a stated date, including applicable interest and charges.
Net sale proceeds: Money expected to remain after repaying secured borrowing and paying sale-related costs.
Additional borrowing: Mortgage borrowing required above the amount transferred or ported.
Agreement in Principle: An initial lender indication, not a mortgage offer or guarantee.
Conveyancing: Legal work involved in transferring property ownership and completing the mortgage.
Exchange of contracts: The stage at which a transaction in England and Wales normally becomes legally binding.
Completion: The point at which purchase funds transfer and legal ownership changes.
Property chain: A linked sequence of property sales and purchases.
Lender valuation: An assessment primarily undertaken for the lender's security decision.
Home Survey: An independent assessment of property condition for the person commissioning it.
Bridging finance: Specialist short-term borrowing normally used until an identified sale or refinance occurs.
Loan-to-value: The mortgage expressed as a percentage of the property value accepted by the lender.

Important information

This guide provides general educational information only and does not constitute personal mortgage, bridging, legal, tax, surveying or insurance advice. The legal process, terminology and property taxes differ across England, Wales, Scotland and Northern Ireland.

Mortgage products, rates, porting arrangements, early repayment charge provisions, lender criteria and professional fees can change. Any recommendation can only be made following a full assessment of your circumstances.

Bridging finance is normally secured against property and can be expensive. A clear and realistic repayment strategy is essential.

Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.

My Mortgage & Protection Experts Ltd is an Appointed Representative of King Mortgages Ltd, which is authorised and regulated by the Financial Conduct Authority. My Mortgage & Protection Experts Ltd: FCA reference 937076. King Mortgages Ltd: FCA reference 803561.

This guide is for informational purposes only and was accurate at the date of publication. Please seek personalised advice before making financial decisions.

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