Moving Home

A Simple Guide to Moving House and Managing Your Mortgage

Moving home can be exciting.

However, it can also be stressful.

You may need to sell your current property, find a new one, arrange a mortgage and organise the move.

There can also be surveys, solicitors, estate agents and removal companies to think about.

At first, it may feel like everything needs to happen at once.

Fortunately, you can make the process easier by taking it step by step.

This guide explains the main stages of moving home, how your mortgage may be affected and some of the costs you should plan for.

Start With Your Budget

Before you start looking at properties, it helps to understand your position.

First, consider how much your current home may be worth.

Then, find out how much you still owe on your mortgage.

The difference may form part of the money available for your next home.

For example:

Estimated value of your current home: £250,000

Mortgage remaining: £150,000

This gives you:

£100,000 of equity

However, this does not mean you will have the full £100,000 available.

You may also need to pay costs such as:

  • Estate agent fees
  • Solicitor fees
  • Mortgage fees
  • Moving costs
  • Repairs
  • Other selling costs

Therefore, work out your likely budget before making plans.

What Is Equity?

Equity is the part of your property that you own.

A simple calculation is:

Property value − Mortgage remaining = Equity

For example:

£250,000 − £150,000 = £100,000

So, your equity is £100,000.

When you sell your current home, the mortgage will normally need to be repaid from the sale proceeds.

The remaining money, after relevant costs, may then be used towards your next property.

Find Out What Your Current Home Is Worth

The value of your home will affect what you can afford to buy next.

Therefore, it can be useful to get more than one valuation.

You may choose to speak to several estate agents.

However, remember that an estate agent’s suggested price is not a guarantee.

The final sale price will depend on what a buyer is willing to pay.

Therefore, it can help to look at:

  • Recent local sale prices
  • Similar properties currently for sale
  • The condition of your home
  • The local market

Try to build your plans around a realistic figure.

Work Out Your Existing Mortgage Position

Next, check your current mortgage.

Find out:

  • How much you still owe
  • Your current interest rate
  • When your current deal ends
  • Whether an early repayment charge may apply
  • Whether the mortgage is portable

These details can make a big difference to your next move.

Therefore, do not assume you can simply sell your home and arrange a new mortgage without checking the costs.

Can You Take Your Mortgage With You?

Some mortgage products are described as portable.

This means you may be able to move the mortgage product to your new home.

This is often called porting your mortgage.

For example, you may have a mortgage with a favourable fixed rate.

Rather than ending that mortgage and paying an early repayment charge, you may be able to transfer the product to your next property.

However, portability does not mean the mortgage moves automatically.

The lender will normally carry out further checks.

You may need to:

  • Apply again
  • Pass affordability checks
  • Provide updated information
  • Have the new property assessed

Therefore, check the details with your lender.

What Happens If Your New Home Costs More?

Many people move to a more expensive property.

For example, you may currently have:

Mortgage: £150,000

However, you may need:

£220,000

for your next home.

In this situation, you may be able to:

Port your existing £150,000 mortgage

and:

Borrow an additional £70,000

The additional borrowing may have a different interest rate.

Therefore, you could end up with two parts to your mortgage.

For example:

£150,000 at your existing rate

plus:

£70,000 at a new rate

This can make your mortgage arrangements slightly more complicated.

However, it may still be useful depending on the deal you currently have.

What If Your New Home Costs Less?

Sometimes people move to a cheaper property.

This could mean you need a smaller mortgage.

However, reducing your mortgage significantly may have consequences.

For example, an early repayment charge could apply if you repay part of a mortgage during a fixed period.

Therefore, check the terms before deciding.

You may have several options.

The right one will depend on your mortgage and your plans.

Selling Before You Buy

Some people prefer to sell their current home before making an offer on another property.

This can give you a clearer idea of how much money you have available.

It may also make you more attractive to sellers because you are not waiting to sell your own home.

However, there can be a downside.

You may need somewhere to live if your sale completes before you find your next home.

Therefore, consider your likely timescale before choosing this approach.

Buying Before You Sell

Other people find their next home first.

Then, they put their current property on the market.

This may help you avoid missing out on a property you really want.

However, your purchase may depend on your existing home being sold.

This can create a chain.

If one sale falls through, it can affect other buyers and sellers.

Therefore, property chains can sometimes make moving more complicated.

What Is a Property Chain?

A property chain happens when several house purchases depend on each other.

For example:

You need to sell your home

The buyer of your home needs to sell their home.

That person may also be buying another property.

As a result, several transactions become connected.

If one person withdraws or cannot proceed, the chain may be affected.

Therefore, delays can happen.

A shorter chain is often simpler.

However, there is never a guarantee that a move will be completely straightforward.

Choosing Your Next Home

When looking for your next property, price is important.

However, it should not be the only consideration.

Also think about:

  • Location
  • Size
  • Condition
  • Energy efficiency
  • Council tax
  • Transport
  • Local services
  • Future maintenance
  • Your future needs

For example, a larger home may suit you now.

However, it may also cost more to heat and maintain.

Likewise, a cheaper property may need significant repairs.

Therefore, consider the whole cost of owning the property.

Making an Offer

Once you find a property you want to buy, you can make an offer.

If the seller accepts, the buying process begins.

However, an accepted offer is not normally the end of the process.

You may still need to arrange:

  • Your mortgage
  • A valuation
  • A survey
  • Legal work
  • Searches

You may also still need to sell your existing property.

Therefore, try to keep your plans flexible.

Applying for a New Mortgage

If you need a new mortgage or additional borrowing, the lender will normally assess your current circumstances.

Even if you already have a mortgage with that lender, you may still need to go through affordability checks.

The lender may consider:

  • Your income
  • Your regular spending
  • Existing debts
  • Credit commitments
  • Household costs
  • Employment situation
  • The property you want to buy

Therefore, do not assume that because you were approved for your current mortgage, you will automatically be approved for a larger one.

Mortgage Affordability

Your financial situation may have changed since you bought your current home.

For example:

  • Your income may have increased
  • Your income may have fallen
  • You may have new financial commitments
  • Interest rates may have changed
  • Your household costs may be higher

Therefore, it is worth reviewing your budget before you start looking at properties.

Ask yourself:

What monthly payment would I be comfortable making?

Then consider your wider costs too.

Remember the Cost of Running the New Home

A larger mortgage is only part of the picture.

Your new home may also cost more to run.

For example, check:

  • Energy costs
  • Council tax
  • Water
  • Buildings insurance
  • Maintenance
  • Service charges, if relevant
  • Travel costs

A property that seems affordable based on the mortgage payment alone may become expensive once all the other costs are included.

Therefore, look at the complete monthly budget.

Fixed-Rate Mortgages and Moving Home

If you have a fixed-rate mortgage, moving home can require extra planning.

You may be able to port the mortgage.

However, this depends on the lender and your circumstances.

If you repay the mortgage early instead, an Early Repayment Charge may apply.

This can sometimes be a significant amount.

Therefore, before putting your home on the market, find out:

  • Whether your mortgage is portable
  • Whether an ERC applies
  • How long your fixed deal has left
  • What happens if you need additional borrowing

These answers can help you decide how to finance your move.

Surveys and Property Condition

Your lender may arrange a mortgage valuation.

However, this is mainly for the lender.

It is not always a detailed inspection of the property’s condition.

Therefore, you may want to arrange a survey.

A survey can help identify problems such as:

  • Damp
  • Structural movement
  • Roof issues
  • Electrical concerns
  • Other defects

The right level of survey will depend on the property.

For example, an older or unusual property may need a more detailed inspection.

Although a survey costs money, it may help you avoid unexpected repair costs later.

Do Not Forget the Legal Work

You will normally need a solicitor or conveyancer to deal with the legal side of the move.

They may handle:

  • The sale of your current home
  • The purchase of your new home
  • Mortgage legal work
  • Searches
  • Transfer of funds
  • Exchange of contracts
  • Completion

If you are both selling and buying, your legal work can be more complicated than a simple purchase.

Therefore, ask for a clear explanation of the likely costs.

Moving Costs

Moving home can involve several costs.

These may include:

Selling Costs

  • Estate agent fees
  • Solicitor fees
  • Mortgage exit costs
  • Early repayment charges, if applicable

Buying Costs

  • Solicitor or conveyancing fees
  • Mortgage fees
  • Valuation fees
  • Survey costs
  • Property taxes, where applicable

Moving Costs

  • Removal company
  • Storage
  • Cleaning
  • Redirecting mail
  • New furniture
  • Repairs and decorating

The costs can quickly add up.

Therefore, create a moving budget before you commit to a purchase.

Property Taxes

Property taxes can vary depending on where you live.

The rules may also depend on:

  • The price of the property
  • Whether you already own another property
  • Your circumstances
  • The part of the UK where you are buying

For example, the rules are different across England, Scotland, Wales and Northern Ireland.

Therefore, check the current rules before working out your final budget.

Buildings Insurance

When you move home, you will normally need to arrange appropriate buildings insurance for the new property.

Your mortgage lender may require this.

It is important to check when the insurance needs to start.

Do not assume you can wait until after you have moved in.

Your solicitor, conveyancer or insurer can explain the arrangements that apply to your purchase.

You may also want to arrange contents insurance.

Preparing Your Current Home for Sale

You do not necessarily need to spend thousands of pounds improving your home before selling.

However, simple improvements can help it look more appealing.

For example:

  • Declutter rooms
  • Carry out basic repairs
  • Clean thoroughly
  • Improve lighting
  • Tidy outside areas
  • Fix obvious faults

Focus on making the property look well cared for.

However, think carefully before spending large amounts on improvements that you may not recover in the sale price.

Organising the Move

Once contracts are exchanged and a completion date is agreed, you can start making final arrangements.

For example:

First: book a removal company.

Next: start packing non-essential items.

Then: arrange mail redirection.

After that: tell relevant organisations about your move.

You may need to contact:

  • Energy suppliers
  • Water supplier
  • Broadband provider
  • Mobile provider
  • Bank
  • Insurers
  • Local authority
  • GP and other services, where appropriate
  • Employers and other important contacts

A simple checklist can make this much easier.

Meter Readings

On moving day, take final meter readings at your old home.

Also take opening readings at your new property.

If possible, take photographs showing:

  • The meter
  • The reading
  • The date

This can help if there is a dispute about energy use or billing later.

Keep the information somewhere safe.

Broadband and Other Services

Broadband may not be available immediately when you move.

Therefore, check this early.

Find out:

  • What services are available
  • The likely installation time
  • Whether your existing provider can transfer the service
  • Whether you can keep your current number, if relevant

If you work from home, this may be especially important.

You may need a temporary connection while waiting for your main service to be installed.

Moving Day

Moving day can be busy.

Therefore, prepare as much as possible in advance.

Keep important items with you.

For example:

  • Identification
  • Important documents
  • Medication
  • Keys
  • Chargers
  • Wallet
  • Basic toiletries
  • Essential clothing

You may also want to prepare a box containing items you will need immediately.

For example:

  • Kettle
  • Tea or coffee
  • Basic food
  • Toilet paper
  • Cleaning products

This can make the first evening much easier.

After You Move

Once you have moved in, there are still a few things to do.

Check that you have:

  • Supplied meter readings
  • Registered for council tax
  • Arranged buildings and contents insurance
  • Updated your address
  • Checked your utilities
  • Tested smoke and carbon monoxide alarms
  • Located stop taps and fuse boxes
  • Checked keys and locks

It can also be useful to photograph the condition of the property when you move in.

Take Time to Understand Your New Home

You do not need to complete every job during the first week.

Instead, start with the important things.

For example:

Safety first

Then:

Essential repairs

After that:

Comfort and improvements

This can help you avoid spending large amounts of money too quickly.

Living in the property for a while may also help you understand what changes are genuinely needed.

A Simple Moving Home Checklist

Before You Start

  • Find out what your current home may be worth
  • Check your mortgage balance
  • Find out whether an ERC applies
  • Check whether your mortgage is portable
  • Review your budget

Before Making an Offer

  • Work out how much you can afford
  • Consider the running costs of the new home
  • Think about surveys
  • Budget for moving costs
  • Check the property’s condition

Once Your Offer Is Accepted

  • Arrange your mortgage
  • Instruct a solicitor or conveyancer
  • Arrange a survey if needed
  • Progress the sale of your current home
  • Keep in contact with the people involved

Before Moving Day

  • Arrange insurance
  • Book removals
  • Contact utility providers
  • Arrange broadband
  • Redirect your mail
  • Pack essential items separately

On Moving Day

  • Take final meter readings
  • Take opening meter readings
  • Keep important documents with you
  • Check the property
  • Make sure you have the keys

Compare Mortgages With Energility

Moving home can be a good time to review your mortgage.

You may need to:

  • Port your existing mortgage
  • Borrow additional money
  • Arrange a completely new mortgage
  • Change your mortgage term

Energility is developing its future mortgage comparison services.

Over the coming months, we plan to make it easier to compare mortgage options while also providing clear online guidance.

In the meantime, you can explore our mortgage guides to better understand:

  • How mortgages work
  • Fixed and variable rates
  • Mortgage affordability
  • Loan-to-value
  • Remortgaging
  • Early repayment charges
  • Buying a home
  • Moving home

Our aim is simple:

Help you understand your options before making an important financial decision.

Quick Summary

Moving home involves more than simply selling one property and buying another.

First, understand your current financial position.

Next, check your existing mortgage.

Then, find out whether you can port it or whether a new mortgage may be needed.

After that, create a realistic budget for the full cost of moving.

Remember to include:

  • Estate agent fees
  • Legal costs
  • Mortgage fees
  • Surveys
  • Moving costs
  • Insurance
  • Property taxes, where applicable
  • The future cost of running your new home

Most importantly, take the process one step at a time.

A house move can feel complicated.

However, good planning can make it much easier to manage.

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