Why Are You Moving?

According to statistics, the average British homeowner stays in their home for around 12 years (rising to 17 years in London). But life changes, and so do your housing needs.

Common reasons for moving home include:

Upsizing:

• Growing family (need more bedroomsand bathrooms)
• Home office or workspace required
• Larger garden for children or pets
• More storage space

Downsizing:

• Children have left home (empty nesters)
• Retirement (lower maintenance, smaller property)
• Reduce monthly mortgage payments or outgoings
• Release equity for retirement or other purposes

Relocating:

• New job or career change
• Moving closer to family
• Better schools or amenities
• Lifestyle change (city to countryside, or vice versa)

Other reasons:

• Separation or divorce
• Better transport links for commuting
• Moving to a better area or neighbourhood
• Upgrading to a nicer property
• Whatever your reason for moving, I’ll help you secure the right mortgage to make your move as smooth and stress-free as possible.

How Much Can I Borrow?

When you’re moving home, lenders will reassess your affordability based on your current income, outgoings, and credit history.

Typical borrowing capacity:

• Most lenders will lend 5 times your annual income
• Some lenders go up to 5-5.5 timesfor higher earners or specific professions (doctors, lawyers, accountants)

Single Applicant Examples:

Annual Income	4.5x Income	Maximum Mortgage
£30,000	x 4.5	£135,000
£40,000	x 4.5	£180,000
£50,000	x 4.5	£225,000
£60,000	x 4.5	£270,000
£75,000	x 4.5	£337,500

Joint Application Examples:

Combined Income	4.5x Income	Maximum Mortgage
£60,000	x 4.5	£270,000
£80,000	x 4.5	£360,000
£100,000	x 4.5	£450,000
£120,000	x 4.5	£540,000

Important: Lenders will also assess:

• Your monthly outgoings (credit cards, loans, car finance, childcare)
• Your credit history (missed payments or defaults reduce borrowing capacity)
• Your existing mortgage balance (how much equity you have)
• Your deposit for the new property (larger deposit = better rates)

How Much Deposit Do I Need?

The deposit you need depends on:

1. Equity in your current home(sale price minus outstanding mortgage)
2. Price of your new home
3. Whether you’re upsizing or downsizing

Typical Deposit Requirements:

Most lenders prefer at least 10% deposit, but some accept 5% (with higher interest rates).

Example 1: Upsizing

• Current home value: £200,000
• Outstanding mortgage: £120,000
• Equity available:£80,000
• New home price: £300,000
• Deposit from equity: £80,000 (26.7%)
• New mortgage needed: £220,000

Example 2: Downsizing

• Current home value: £300,000
• Outstanding mortgage: £150,000
• Equity available:£150,000
• New home price: £200,000
• Deposit from equity: £150,000 (75%)
• New mortgage needed: £50,000 (or pay cash if you have enough equity)

Example 3: Upsizing with Additional Savings

• Current home value: £250,000
• Outstanding mortgage: £180,000
• Equity available:£70,000
• Additional savings: £20,000
• Total deposit:£90,000
• New home price: £350,000
• New mortgage needed: £260,000

Your Mortgage Options When Moving Home

1. Porting Your Existing Mortgage

What is porting? Porting means transferring your existing mortgage (and interest rate) from your current property to your new property.

When is porting a good idea?

• You’re on a low fixed rate (e.g., 2-3%) and want to keep it
• You’d face a large early repayment charge (ERC) if you switched lenders
• You’re moving within the same price range (not borrowing significantly more)

How porting works:

• You apply to port your mortgage before selling your current home
• The lender reassesses your affordability (income, credit, outgoings)
• If approved, your existing mortgage transfers to the new property
• If you need to borrow more, the lender may offer a second mortgage at current rates

Example:

• Current mortgage: £150,000 at 2.5% fixed (2 years remaining)
• New property price: £250,000
• Port existing mortgage: £150,000 at 2.5%
• Additional borrowing: £100,000 at 4.5% (current rate)
• Result: Blended rate of approximately 3.3%

Pros:

✅ Keep your low fixed rate

✅ Avoid early repayment charges

✅ May save thousands in interest over the remaining fixed period

Cons:

❌ Not all mortgages are portable (check your mortgage offer)

❌ Lender must reassess your affordability (not guaranteed)

❌ Additional borrowing is at current rates (may be higher)

❌ Limited to your current lender’s products

2. Remortgaging to a New Lender

What is remortgaging? Remortgaging means paying off your existing mortgage and taking out a new mortgage with a different lender (or the same lender on a new deal).

When is remortgaging a good idea?

• Your current fixed rate has ended (you’re on the lender’s standard variable rate)
• You want access to better rates or cashback offers
• You want to borrow significantly more (easier with a new lender)
• You want more flexible features (overpayments, payment holidays, offset accounts)

How remortgaging works:

• I’ll search the whole market for the best deal
• You apply for a new mortgage with a new lender
• The new lender pays off your old mortgage on completion
• You move to your new property with the new mortgage in place

Pros:

✅ Access to the best rates across the whole market

✅ Potential cashback or incentives (free valuations, legal fees, cashback)

✅ More flexibility in borrowing amount

✅ Can switch to a better lender with better service

Cons:

❌ May incur early repayment charges if you’re still in a fixed term

❌ New application and affordability checks required

❌ New mortgage arrangement fees (typically £999)

3. Let-to-Buy (Keep Your Current Home and Rent It Out)

What is Let-to-Buy? Instead of selling your current home, you keep it and rent it out, then take out a new mortgage to buy your next home.

When is Let-to-Buy a good idea?

• You want to keep your current home as an investment
• You’re relocating temporarily (e.g., for work) and plan to return
• Your current home has strong rental demand
• You want to build a property portfolio

How Let-to-Buy works:

• Convert your current residential mortgage to a buy-to-let mortgage (or remortgage to a BTL lender)
• Rent out your current home
• Apply for a new residential mortgage for your next home

Affordability:

• Lenders assess rental income from your current home (typically 125-145% of the BTL mortgage payment must be covered by rent)
• Your new residential mortgage is assessed on your income minus your current mortgage payment (unless rental income fully covers it)

Example:

• Current home value: £200,000
• Outstanding mortgage: £120,000
• Monthly mortgage payment: £600
• Expected rental income: £900/month
• New home price: £250,000
• New mortgage: £200,000 (based on your income and rental income offsetting the old mortgage)

Pros:

✅ Keep your current home as an investment

✅ Rental income helps pay the mortgage

✅ Potential property price appreciation on both properties

✅ Build a property portfolio

Cons:

❌ Landlord responsibilities (maintenance, tenant management, regulations)

❌ Buy-to-let mortgages have higher rates (typically 1-2% higher than residential)

❌ Additional costs (landlord insurance, safety certificates, letting agent fees)

❌ Stamp duty surcharge on your new home (3% additional on each band)

Moving Home Mortgage Process

Step 1: Get a Decision in Principle (DIP)

A Decision in Principle (also called Agreement in Principle or Mortgage in Principle) is a conditional approval from a lender confirming how much they’ll lend you.

Why you need a DIP:

• Estate agents and sellers take you seriously (proves you can afford the property)
• Speeds up the buying process (you’re already pre-approved)
• Helps you set a realistic budget (you know your maximum borrowing)

How to get a DIP:

• Contact me and I’ll arrange a DIP with the most suitable lender
• Soft credit check (no impact on credit score)
• Valid for 60-90 days (depending on lender)

What you’ll need:

• Proof of income (payslips, tax returns if self-employed)
• Details of your current mortgage (outstanding balance, monthly payment, lender)
• Proof of deposit/equity (estate agent valuation or recent sale price estimate)
• Details of any credit commitments (loans, credit cards, car finance)

Step 2: Instruct an Estate Agent & Value Your Property

Getting your property valued:

• Instruct 2-3 local estate agents for free valuations
• Compare their estimates and marketing strategies
• Choose the agent with the best combination of valuation, fees, and marketing plan

Typical estate agent fees:

• Scotland: 1-2% + VAT (e.g., £2,000-£4,000 on a £200,000 sale)
• England/Wales: 1-3% + VAT (e.g., £2,000-£6,000 on a £200,000 sale)
• Online agents: £500-£1,500 flat fee (but less marketing and support)

Tips:

• Don’t automatically choose the highest valuation (overpricing can lead to your property sitting on the market for months)
• Check the agent’s recent sales in your area (look for “sold” properties on Rightmove)
• Ask about their marketing strategy (professional photos, floorplans, online listings, social media)

Step 3: Find Your New Property

Tips for home movers:

• Set a realistic budget (factor in stamp duty, legal fees, survey costs, and moving costs)
• Consider your commute, schools, and local amenities
• Don’t stretch your budget to the maximum (leave room for unexpected costs and interest rate rises)
• Get a survey (don’t rely on the lender’s valuation—it’s not a structural survey)

What to look for:

• Good transport links (especially if you commute)
• Local amenities (shops, schools, parks)
• Neighbourhood safety (check crime statistics on police.uk)
• Future development plans (check local council planning applications)

Step 4: Coordinate Your Sale & Purchase

In Scotland:

• Offers are legally binding once accepted
• No chain (sales and purchases are independent)
• Typical timeline: 4-8 weeks from offer to completion

In England & Wales:

• Offers are not legally binding until contracts are exchanged
• Chain risk (your sale and purchase are linked—if one falls through, both collapse)
• Typical timeline: 8-12 weeks from offer to completion

Tips to avoid chain collapse:

• Keep communication open with all parties (buyer, seller, estate agents, solicitors)
• Be flexible on completion dates (helps keep the chain moving)
• Have a backup plan (temporary accommodation if your sale completes before your purchase)

Step 5: Full Mortgage Application

Once your offer is accepted and your sale is progressing, I’ll submit your full mortgage application with:

• Proof of income (last 3 months’ payslips, last 2-3 years’ accounts if self-employed)
• Proof of deposit/equity (sale agreement, mortgage redemption statement)
• Bank statements (last 3-6 months)
• ID and proof of address
• Details of the property (address, purchase price, estate agent details)

Timeline:

• Application submitted: Day 1
• Lender reviews application: Days 1-7
• Valuation arranged: Days 7-14
• Mortgage offer issued: Days 14-28 (can be faster for straightforward cases)

Step 6: Property Valuation & Survey

Lender’s valuation:

• Arranged by the lender (you pay £0-£500 depending on property value)
• Confirms the property is worth the purchase price
• Not a structural survey (only checks the property is adequate security for the loan)

Homebuyer’s survey (optional but recommended):

• RICS Home Survey Level 2 (£400-£600): Highlights major defects and urgent repairs
• RICS Home Survey Level 3 (£600-£1,500): Full structural survey (recommended for older properties or properties in poor condition)

Why you should get a survey:

• Identifies hidden problems (damp, subsidence, roof issues, electrical problems)
• Gives you negotiating power (you can renegotiate the price or ask the seller to fix issues)
• Avoids costly surprises after you move in

Step 7: Exchange & Completion

England & Wales:

• Exchange of contracts: You pay a deposit (typically 10% of purchase price) and the sale becomes legally binding
• Completion: Usually 1-4 weeks after exchange. Funds are transferred, you get the keys, and you can move in

Scotland:

• Conclusion of missives: Sale becomes legally binding (no separate exchange and completion)
• Settlement date: Agreed date when funds are transferred and you get the keys (typically 4-8 weeks after offer accepted)

Moving Home Costs

1. Estate Agent Fees

Cost: 1-3% + VAT (typically £2,000-£6,000 on a £200,000 sale)

2. Early Repayment Charge (ERC)

Cost: 0-5% of outstanding mortgage balance (if you’re still in a fixed term) Example: £150,000 mortgage, 2% ERC = £3,000

3. Mortgage Arrangement Fee (New Mortgage)

Cost: £0-£2,000 (typically £999)

4. Valuation Fee

Cost: £0-£500 (depending on property value)

5. Survey Cost (Optional but Recommended)

RICS Level 2: £400-£600RICS Level 3: £600-£1,500

6. Legal Fees (Conveyancing for Sale & Purchase)

Cost: £1,500-£3,000 (covers both sale and purchase)

7. Stamp Duty (England & Northern Ireland)

Rates (2025):

• Up to £250,000: 0%
• £250,001-£925,000: 5%
• £925,001-£1.5m: 10%
• Above £1.5m: 12%

Example:

• Property price: £350,000
• Stamp duty: 5% on £100,000 (£350,000 – £250,000) = £5,000

8. Land and Buildings Transaction Tax (Scotland)

Rates (2025):

• Up to £145,000: 0%
• £145,001-£250,000: 2%
• £250,001-£325,000: 5%
• £325,001-£750,000: 10%
• Above £750,000: 12%

Example:

• Property price: £300,000
• LBTT: 2% on £105,000 + 5% on £50,000 = £2,100 + £2,500 = £4,600

9. Land Transaction Tax (Wales)

Rates (2025):

• Up to £225,000: 0%
• £225,001-£400,000: 6%
• £400,001-£750,000: 7.5%
• £750,001-£1.5m: 10%
• Above £1.5m: 12%

10. Removal Costs

Cost: £500-£2,000 (depending on distance and volume)

11. Broker Fee

My fee: £995

Payable: On completion only (no upfront fees)

Total Typical Moving Home Costs:

Example: £300,000 purchase, £200,000 sale, £250,000 new mortgage

Cost	Amount
Estate agent fees (sale)	£3,000
Early repayment charge (if applicable)	£0-£3,000
Lender arrangement fee	£999
Valuation	£400
Survey (Level 2)	£500
Legal fees (sale & purchase)	£2,000
Stamp duty/LBTT	£2,500-£5,000
Removal costs	£1,000
Broker fee	£995
Total	£11,894-£17,394

Budget for: £15,000-£20,000 total (excluding deposit)

Moving Home FAQs

Can I port my mortgage if I’m upsizing significantly?

Yes, but you’ll need to borrow more. Most lenders will allow you to port your existing mortgage and take out a second mortgage for the additional borrowing. The second mortgage will be at current rates.

Example:

• Current mortgage: £100,000 at 2.5%
• New property: £250,000
• Port: £100,000 at 2.5%
• Additional borrowing: £150,000 at 4.5%
• Blended rate: approximately 3.8%

What if my buyer pulls out?

In Scotland: Once an offer is accepted, it’s legally binding. Buyers cannot pull out without penalty.

In England & Wales: Buyers can pull out anytime before exchange of contracts. To protect yourself:

• Ask your buyer for proof of funds and a Decision in Principle
• Keep backup viewers interested (in case your buyer pulls out)
• Consider a “lock-in” agreement (buyer pays a non-refundable deposit to secure the property)

Can I buy before I sell?

Yes, but you’ll need:

1. Enough depositfrom savings (not relying on equity from your sale)
2. Affordabilityto pay both mortgages temporarily
3. Bridging finance(short-term loan to “bridge” the gap between purchase and sale)

Bridging finance example:

• You buy your new home for £300,000 (using a bridging loan)
• You sell your current home for £200,000 (2 months later)
• You repay the bridging loan and take out a standard mortgage

Pros:

✅ No chain risk

✅ Can move when you’re ready

Cons:

❌ Expensive (bridging loans cost 0.5-1.5% per month)

❌ Risky (if your sale falls through, you’re stuck paying two mortgages)

What if I’m self-employed?

Self-employed applicants can still get a mortgage, but lenders typically require:

• 2 years’ accounts or tax returns (SA302s and tax year overviews)
• Proof of ongoing contracts (if you’re a contractor)
• Business bank statements (last 3-6 months)

Some lenders accept 1 year’s accounts for established businesses or contractors with a strong track record.

Tip: Speak to a broker (me!) who knows which lenders are self-employed friendly.

Can I get a mortgage with bad credit?

Possibly, but:

• Higher interest rates (+0.5-3% depending on severity)
• Larger deposit required (15-25% instead of 5-10%)
• Limited lender choice (specialist lenders only)

What counts as bad credit:

• Missed payments (credit cards, loans, phone bills)
• Defaults or CCJs
• Bankruptcy or IVA
• Payday loans (even if repaid on time, some lenders view them negatively)

How to improve your chances:

• Wait 12 months after any missed payments
• Pay down credit card balances
• Register on the electoral roll
• Save a larger deposit (15%+)

Why Choose Capital 8 Finance for Your Move?

Whole-of-Market Access

I have access to:

• High street banks (Barclays, NatWest, Lloyds, Santander, TSB)
• Challenger banks (Aldermore, Accord, Virgin Money, Metro Bank)
• Building societies (Nationwide, Skipton, Leeds, Yorkshire, Coventry)
• Specialist lenders (for self-employed, contract workers, adverse credit)

This is only a selection of lenders available to me.

Moving Home Specialists

I understand that moving home involves coordinating multiple moving parts. I’ll help you:

• Decide whether to port or remortgage
• Calculate your borrowing capacity and deposit
• Coordinate your sale and purchase timelines
• Navigate early repayment charges and fees
• Access the best rates across the whole market

Transparent Pricing

Broker fee: £995

Payable: On completion only (no upfront fees)

No obligation consultation – I’ll review your circumstances and explain your options with no pressure to proceed

Get Expert Moving Home Mortgage Advice

Whether you’re upsizing, downsizing, or relocating, I offer:

✅ Free initial consultation to assess your borrowing capacity and options

✅ Whole-of-market access to find the best mortgage deals

✅ Expert guidance on porting, remortgaging, and Let-to-Buy

✅ Transparent pricing (£995 flat fee, payable on completion only)

Serving homeowners across Scotland, England, and Wales.

Capital 8 Finance – Expert mortgage advice to help you move home with confidence.