Mortgage Advice for Home Movers
Moving home is a really exciting time. There are a lot of fun parts you get to enjoy – such as viewing houses, exploring local areas, choosing new furnishings – but these are sometimes overshadowed by the more stressful parts, like arranging a mortgage.
John Charcol is an independent mortgage broker with access to the whole of the market. We not only provide mortgage advice for moving home, we manage your entire property-buying journey so you can enjoy this experience - like you’re supposed to.
Keep reading for information on the mortgage options available to you and how our experts can help you, or see our Guide to Moving House for a detailed walkthrough of how it all works, tips on buying a new home and our moving house checklist.
Have a more specific question you need answered? Ask our mortgage experts.
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Compare the Best Mortgage Deals for Moving House
You can compare mortgages for moving home with our best buy tables below:
Porting a Mortgage vs Switching a Mortgage
When you move from a home you already have a mortgage on to a new property, you typically either switch to a new mortgage with a new lender or take your existing mortgage with you to your new home via “porting”.
Porting Your Existing Mortgage
When you “port” a mortgage, you transfer your existing mortgage from your existing property to your new one.
Technically, your existing mortgage is repaid upon the sale of your existing property and a new version of the same product is taken out on the new property. This happens at completion.
You may want to move home with your existing mortgage if you have a particularly competitive rate that you want to keep, or to avoid any ERCs (early repayment charges). You’ll need to ask your lender or broker whether your mortgage is portable.
Even if your mortgage is portable, you still may not be able to take it with you as you’ll have to reapply for the mortgage with the lender and may not qualify if your circumstances and/or the criteria have changed, or the property you’re looking to buy is deemed unsuitable security by your current lender.
Learn more about porting your mortgage when moving house in our guide.
Switching to a New Mortgage When Moving House
It’s more common to switch mortgage products when you buy a new house, than move your existing mortgage to the new property. Sometimes, people switch providers because their lender won’t let them port their current mortgage, but usually people switch simply because there are better deals available.
When you switch to a new product, your existing mortgage is repaid upon the sale of your existing property and a brand new product is taken out on the new one. This also happens at completion. Learn about managing the property chain in our guide.
See what’s currently on the market with our free mortgage comparison calculator.
How Can John Charcol Help You Move?
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Our Moving Home Mortgage Process
1. First Conversation with Adviser
When you phone us, you can either arrange a phone appointment with your adviser or a face-to-face meeting – whatever suits you. Your adviser will ask you some questions then go away and find you the best deal for your circumstances and future needs. They’ll organise a follow up during which they’ll present you with what they’ve found.
2. Decision in Principle
Once you’re happy with your adviser’s recommendation, they’ll go about securing your DIP (Decision in Principle) - which is basically a promise from the lender that they’ll loan you money on the condition that the information you’ve provided is correct and subject to a valuation of the property.
3. Offer on Property
After you’ve secured a DIP (Decision in Principle), you’ll be in a great position to make an offer on a property. Sellers like DIPs. They show you can afford the purchase. What’s more, the fact that you’ve already started preparing for the transaction highlights to them that you’re serious in your intention to buy.
4. Pre-Application and Submission
Following the acceptance of your offer, we’ll send you some information which explains all the documents we need to submit to the lender. You’ll be assigned a client relationship manager who’ll check and submit certified copies of your documents; they’ll liaise with both you and the lender. Your adviser will then submit the fully packaged mortgage application.
5. Lender Underwriting and Valuation
The lender will underwrite your application; this basically means they’ll verify that the information you’ve provided is correct and review all your documents for themselves. They’ll also instruct a valuation for their purposes on the property you want to buy to make sure there are no significant problems with it.
6. Mortgage Offer
If the lender is happy with everything they’ve found, they’ll send you a mortgage offer. They’ll also send us a copy.
After you’ve accepted your mortgage offer, you’ll go through the legal part of the process, known as conveyancing. This is where the solicitors/conveyancers draw up contracts and organise the actual, legal purchase of the property. You’ll also need to arrange buildings insurance at this stage, making sure it’s in place from exchange.
8. Exchange and Completion
Once everything is in place, your conveyancer/solicitor will exchange contracts with the seller’s conveyancer/solicitor. If your deposit is coming from savings or a gift, then it’s at this point that you put the deposit down and are legally bound to the property. You’ll lose your deposit if you pull out after exchange. If your deposit is coming from the sale of your current property, then it’s transferred at completion as part of the whole purchase. The purchase completes when the money is transferred on an agreed-upon date. This is when you get the keys to your new home.
Not only do we arrange your mortgage, we can find you a conveyancer from our select panel. Our recommendation will be based on your situation and timeframe to ensure your move goes according to plan.
With our Concierge Service, we can help you move into your new home, set up utilities, register for Council Tax and more. There’s no arrangement fee and you could save up to 8 hours of hassle.
What Our Customers Think
What our customers say
John Charcol0330 057 5173£
Cutlers Exchange, 123 HoundsditchLondonEC3A 7BU
1971 Total reviews
I dealt with Kathryn Toomer who arranged my mortgage. My case wasn't completely straightforward but Kat worked really hard to secure me an excellent deal with a high street bank and stuck with it over a protracted sale and purchase process. I cant recommend highly enoough.Posted
Scott Barron was fantastic start to finish. Him and his team couldn't do enough for us. Would definitely recommend to a friend. Thank you Scott!Posted
Randeep Sodhi was first class. Got us a very good deal with HSBC. Worked extremely hard to get it whilst holding some other offers in the background as a reserve. Many thanks SimonPosted
Scott & Louise did an excellent job to get my mortgage to completion, I will come back to them in the future. Thanks again.Posted
By giving us measured, sensible advice. By keeping in touch regularly and responding quickly to any questions. Our adviser was Lawrence Bolarinwa and he was a delight to work with.Posted
I have gone John Charcol several times now and on each occasion I have received a first class service and they have found the best deals for me.Posted
David Pudney was simply fantastic to deal with on our remortgage. He found us the perfect product for our circumstances and ensured we had a smooth transition from deciding which lender to use and then obtaining the initial offer right through to completion. Cannot recommend him highly enough for any of your mortgage needs. We will definitely be returning to David when we require assistance again.Posted
Second experience of dealing with Scott Barron at John Charcol and again a good one. Scott was indispensable in finding a mortgage to suit specific and complex circumstances, then well supported by Louise Cheatle in seeing it through to completion. I would happily use them again and am clear on the value added by brokerages when seeking a good value mortgage.Posted
It has been an abslout peace of mind to deal with John Charcol and Harris Zubair in specific. He has helped myself and my wife to get the best mortgage deal as first time buyers and been there for us for every questions and documents we needed through out the process. Harris even helped to get us a great interest rate for the mortgage from our first offer and we really happy and would recommed to anyone with or without selfemployed to use there/his service. We would we be definatly using them for future purchases of property.Posted
John Charcol, more specifically Daniel Dordan-Pike and Reanne Monteith, provided my boyfriend and I with the best customer service we have ever received in our lives. We stumbled across John Charcoal from a Google search after we had multiple mortgage brokers tell us that my boyfriend was too much of a complicated applicant due to him being self-employed and not being able to work most of 2020 due to Covid, this on top of the fact we were first time buyers! I submitted a website enquiry late one night and the very next morning, Daniel gave me a call to discuss our case. This phone call was the most amazing first contact and Daniel explained the whole mortgage process so well and clear that I felt like I way buying nothing more than a loaf of bread from the local shop, he just made everything seem so easy and straightforward. Within a matter of days, Daniel provided us with a number of lenders that he confidently felt would accept us (even as complicated applicants). Within 2 weeks, I believe our mortgage application was submitted and it was now in the lenders hands but at no point were we left in the lerch - Daniel was in constant contact with us giving us updates on how the application was going from the lenders. Sadly, the first lender did come back and say no but Daniel was fantastic and straight away raised an appeal to have our application re-evaluated as he truly believed there was nothing for them to say no to. As well as having the appeal running, Daniel also completed a second application with our next lender of choice to ensure that no time would be lost during this stage. Luckily for us, Daniel's appeal to our first lender of choice went through and we had a mortgage offer within about 1 month of our first contact with John Charcol. Daniel was so incredible and efficient that it made us feel so secure during the entire mortgage application process. After we signed our Mortgage Deed, we were then assigned a case handler (Reanne) to help ensure that everything from then to the point of exchange went smoothly. Reanne rang me to introduce herself and once again I immediately felt secure with John Charcol by our side. Unfortunately, our solicitors were probably some of the worst you could imagine but during our entire battle with our Solicitors, Reanne was there every step of the way pushing things forward and just going above and beyond her duty to help us. Even 5 months after our mortgage application had been approved and we had paid for John Charcol's services, Reanne was still on hand helping us get through the process. She was in constant contact checking in on things, liaising with our lenders, chasing our solicitors and at one point even became our IT guru when our solicitors messed up some of our documents. Reanne was the most helpful, responsive and efficient person we have ever come across and the service Reanne provided us was nothing short of perfection. We have been in contact with a number of other employees at John Charcol (Sam Walker, Fiona Allan, Katherine Hollyoake are a few names off the top of my head) and every single one of them have been fantastic and provide us with the highest possible level of service! I am so grateful for Daniel and Reanne and I will recommend them to anyone I possibly can because their help and service has been impeccable and without them, I truly believe we would not be moving into our property! If you are looking for the best mortgage brokers, then John Charcol are the answer!Posted
What Are the Mortgage Costs When Moving House?
We’ve listed some of the costs you might face when taking out a mortgage loan and moving house, below.
You pay Stamp Duty when you buy a property or piece of land over a certain value in the UK. Find out how much you’ll pay with our Stamp Duty calculator.
When a lender’s considering your application, they’ll arrange a mortgage valuation on the property you want to buy. It’s a way for the lender to make sure the property is worth the minimum amount you want to borrow and is suitable security for a mortgage.
After you accept your mortgage offer, your solicitor arranges all the paperwork for your new property. Talk to your solicitor to find out how much they charge. Alternatively, we can help you find a conveyancer with John Charcol Legal.
All lenders require that you take out buildings insurance on your new property when you move house. You may also want to consider contents insurance.
It’s normal for brokers to charge a fee for arranging your mortgage. This should always be discussed with you during your first call or meeting with your adviser.
Unless you’re moving all your belongings and furniture yourself, you’ll likely want a removal company. We can help you organise removals with our free Concierge Service.
If you’re porting your mortgage and borrowing a larger amount, your lender may charge a product fee.
ERCs (Early Repayment Charges)
You’ll only pay an ERC if you pay back your current mortgage before the introductory period ends in order to switch to a new product.
Lender’s Arrangement Fee
The lender’s arrangement fee covers the costs of organising your mortgage. It can be a flat fee or a percentage. Your lender will tell you how much you’ll pay in arrangement fees.
A booking fee is a one-off application fee you pay to book and reserve the rate for the mortgage while your request is processed.
Moving House Mortgage FAQs
Do You Need a Deposit When Moving Home?
You need a deposit when you move home whether you’re taking out a new mortgage on the new property or porting your existing mortgage. You put down a cash deposit at the exchange of contracts. If your deposit is coming from the sale of your current property, it will be transferred at completion.
Do You Have to Pay a Deposit When Porting a Mortgage?
You still pay a deposit when you port a mortgage as there are no 100% mortgage products on the market anymore. Therefore, you need a deposit to add to the mortgage to make up the full purchase price of the property; often the deposit will come from the proceeds of the sale of your current property, but you can also use savings or an inheritance.
Can I Move House with a Fixed Mortgage?
If you have a great fixed mortgage rate you don’t want to lose, you can ask your lender whether your mortgage is portable. If it’s not, you may be able to switch to a new – and possibly better – fixed rate mortgage product with a different lender.
How Do I Downsize My Mortgage?
You can sometimes downsize your mortgage when you move home if you take out a mortgage for a property that’s worth less than your current property. It’s important to note that any ERCs (early repayment charges) on your existing mortgage will still be charged on the amount of your existing mortgage that you actually repay whilst downsizing.
Can I Get a Mortgage on a Home if I’m Over 60?
There are later life lending options. See what our expert has to say about mortgages for people over 50 and 60.
Should I Get a 5, 10 or 20 Year Mortgage?
There are a few different factors that determine which mortgage term you should choose.
- Why you’re moving
- How long you plan to live in your new property
- What you can afford in monthly repayments
- The amount you want to borrow
- When you are looking to retire
- Any expected future financial changes (expenditures or incomes)
Your adviser will guide you through the options and find you the mortgage that best suits your current and future needs.