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Useful guides

Mortgage types

Home mover step-by-step timeline

Buying a home when you already own a house and have an existing mortgage can be overwhelming. That’s why we’ve put together this comprehensive, step-by-step guide to help you through the home mover mortgage process.  

We’ll talk you through selling your current property and arranging finance for the new property. As a homeowner, you have several options for your mortgage, depending on your existing deal and circumstances. These options include:

  • Porting an existing mortgage
  • Taking out a new mortgage
  • Porting while borrowing additional funds

Whatever choice you make, James Leighton can assess the options and support you at every step. 

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Initial home mover enquiry
 

Ready to kick off the process? The best option is to speak to one of our team before committing to a new property. During your discussion you will cover:

  • Your current property and mortgage
  • The outstanding mortgage balance and current deal
  • The estimated value/equity in the existing property
  • The type and approximate value of the property you want to buy
  • Whether you need to increase, reduce or maintain your borrowing
  • Your plans and timescales

We will use this information to begin assessing the different options available. 
 

Reviewing your finances

With a range of data at their fingertips, our team will carry out a detailed financial assessment. This will involve:  

  • Assessing income, employment and financial commitments
  • Reviewing current mortgage balance and estimated property equity
  • Considering the expected sale price and purchase price
  • Calculating the likely deposit/equity available for the new property
  • Establishing the amount of borrowing required
  • Reviewing affordability for the proposed new mortgage

Option 1: Porting your existing mortgage

Porting a mortgage means transferring your current home loan deal and interest rate to a new property when you move. Porting your mortgage means you get to keep your existing terms and avoid early exit fees if you are on a fixed-rate plan. However, this is subject to lender criteria and a new application.

Option 2: Porting and borrowing more

Imagine: you’ve found the house of your dreams. You want to port your mortgage, but the new property costs more. You need additional borrowing to cover the costs. Unfortunately, it cannot just be added to your existing loan. You’ll have to apply separately for a mortgage deal for the top-up amount. This will usually be at a different rate. This means different parts of the mortgage can have different rates or end dates. 

Option 3: Taking out a new mortgage

Another option is to repay your existing mortgage and arrange a completely new mortgage. This might be a good choice if you’ve found another lender or product that’s more suitable, or if your existing mortgage can’t be ported. However, it’s important to consider early repayment charges.

Comparing your options

While many brokers assume that porting is the best option, our experienced team at James Leighton like to think more broadly. They assess the overall cost and suitability of the available routes rather than assuming that porting the existing deal is best. What’s more, they can offer a fee-free model and access to a range of lenders. It’s a win-win all-round.

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Gathering documentation

Once you’ve decided what route to take, we will request relevant documentation and explain why. These documents include:

  • Payslips/proof of income
  • Bank statements
  • Existing mortgage statement
  • Proof of ID and address
  • Details of other financial commitments

Decision in Principle (DIP)

A DIP is a written estimate from a lender showing how much money they might let you borrow. It is a helpful first step when you want to buy a home. With a DIP, the broker can establish the potential borrowing available for the onward purchase. A DIP also helps the homeowner understand their budget before making an offer.

Selling your existing property and finding your new home

You put your house on the market and establish expected equity from the sale. Now you can search for a new property within the agreed budget. The next step is to make and accept offers for your new/old home. If all runs smoothly, you’ll then need to appoint a solicitor or conveyancer. Much depends on understanding the property chain, which is where this guide (and our team) can help.

What if your sale and purchase don't happen at the same time?

To avoid hold-ups, it’s important to coordinate both the buying and selling transactions. However, sometimes delays are inevitable. Where this occurs, a broker or solicitor can explain your options. Alternative finance may be required, but it doesn’t have to be an automatic option.

Full home mover mortgage application

Sale agreed? Offer accepted? Fantastic. So, what’s left to do?

  • Confirm the chosen mortgage route
  • Select/finalise lender and product
  • Provide property and financial documentation
  • The broker submits the mortgage application
  • The broker manages lender communication

Valuation and underwriting

Following the submission of the application:

  • The lender arranges/undertakes a valuation of the new property
  • The lender confirms that the property is acceptable security
  • The underwriter assesses affordability and the application
  • The lender requests any further information required
  • Where porting, the lender confirms the client remains eligible for the mortgage on the new property

Mortgage offer issued

The lender will now formally approve the mortgage. The offer will state:  

  • Total loan amount
  • Any ported element
  • Any additional borrowing
  • Interest rate(s)
  • Mortgage term
  • Monthly repayments
  • Conditions of the mortgage

The mortgage offer is sent to the homeowner, solicitor and mortgage broker.

Legal work, exchange and completion

At this point, the solicitor manages both sides of the move. They deal with:

  • Legal work relating to the sale of the existing property
  • Searches and legal checks on the new property
  • Coordination with the rest of the property chain
  • Preparation of contracts and completion statements

Exchange of contracts

The big day is getting closer. Contracts are exchanged on the sale and purchase and the transactions become legally binding. The completion date is negotiated and mutually agreed upon by the buyer and seller (and everyone else in the property chain) through conveyancing solicitors.

Completion and moving home

You’re so close to the end. What happens now?

  • The existing property sale completes
  • The existing mortgage is repaid/ported as applicable
  • Mortgage funds for the new property are released
  • Purchase of the new property completes
  • Ownership transfers
  • You receive the keys and move into your new home! 
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FAQs

Can I transfer my existing mortgage when I move house?

It is possible, but it depends on the lender

Is it better to port my mortgage or get a new mortgage?

This depends on your personal circumstances. Your broker can help you decide.

Can I borrow more when I port my mortgage?

You can borrow additional funds, but again, this depends very much on your lender

Do I need to pay an early repayment charge when moving home?

This depends on your current mortgage contract and whether you are still within your contracted fixed rate period. If you are and your contract specifies early repayment charges, you may have to pay more fees.

When should I speak to a mortgage broker about moving home?

If you’re planning on moving home it’s best to contact a broker as soon as possible.

What happens if my house sells before I can buy another?

If your house sells before you’re ready to buy your next home, you’ll need to move out by the agreed completion date and may need to arrange temporary accommodation. The equity released from your sale can then be put towards your next property, and being chain-free could make you a more attractive buyer.

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