Home Mover Mortgages
If you already own a home and you’re moving to a new one, your mortgage options genuinely differ from a first purchase – you’ll be deciding whether to take your existing deal with you, switch to something new, and working out how your built-up equity funds your next move.
What Being a “Home Mover” Actually Means
You’re classed as a home mover if you already hold a mortgage on your current property and are buying a new one to move into, rather than purchasing for the first time. Unlike a first-time buyer, you don’t need to change your mortgage at all in order to move – but you have the option to, and understanding which route genuinely suits you is worth working through properly.
Porting: What It Actually Is
Porting means transferring your existing mortgage deal to your new property, letting you keep your current interest rate and product features rather than starting fresh. It’s worth understanding clearly that porting isn’t a transfer of the loan itself – it’s a transfer of the product or deal. In practice, your existing mortgage is repaid, and a new one with the same terms is taken out against your new property, all within a set window between the two.
Why This Distinction Matters
Because porting is technically a new mortgage application, you have to requalify – a full affordability assessment, credit check, and property valuation, exactly as if you were applying for the first time. Having held the mortgage previously guarantees nothing; if your circumstances have changed since your original application, whether that’s income, employment status, or new debts, this genuinely affects the outcome.
Why People Choose to Port
The main appeal is avoiding an Early Repayment Charge on your existing deal, and keeping a rate that’s still genuinely competitive, particularly valuable if current market rates have risen since you originally took out your mortgage. It’s worth checking your specific mortgage offer letter or terms to confirm whether porting is actually available, since not every mortgage includes this option, though most do.
Why You Might Choose a New Deal Instead
Taking a new mortgage deal, either with your existing lender or a different one, makes more sense when your current rate is no longer competitive, when you’re near the end of your fixed or tracker period anyway, or when the Early Repayment Charge is small enough that a better new rate outweighs it. This isn’t always obvious from the headline rate alone – it’s worth having your broker run the actual numbers across multiple lenders before deciding.
Borrowing More: How This Affects Porting
If your new property costs more than your current one, you can typically port your existing balance at your existing rate, then take a separate new rate for the additional amount needed. This can genuinely mean ending up with two different rates on the same property – worth understanding clearly rather than assuming your entire new mortgage carries your original rate.
Worked Example
Say your current mortgage balance is £180,000 on a competitive fixed rate, and your new property requires £280,000 in total borrowing. You could port the £180,000 at your existing rate, and take a new deal for the remaining £100,000, rather than remortgaging the whole amount onto a single new, potentially less favourable rate.
Borrowing Less: Downsizing and Partial ERCs
If you’re downsizing and need to borrow considerably less than your current balance, most lenders allow you to reduce your borrowing by up to around 10% without triggering an Early Repayment Charge. Beyond that threshold, an ERC typically applies proportionally to the amount you’re reducing by, so it’s worth understanding exactly where this line sits for your specific mortgage before assuming downsizing is automatically cost-free.
How Your Equity Becomes Your New Deposit
The difference between your current property’s value and your outstanding mortgage balance, once selling costs are deducted, becomes your equity – and this typically funds the deposit on your new home. If your property has increased in value and you’ve paid down some of your mortgage, this often means a genuinely larger deposit and access to better rates than when you first bought.
Simultaneous Sale and Purchase vs Buying Before Selling
When your sale and purchase complete simultaneously, lenders are generally comfortable that your deposit will materialise on completion day. If there’s a timing gap – for example, buying before your current home has sold – the position is more complex, and your lender will want to understand exactly how your deposit will be funded in the interim, and whether you could service both mortgages if the timing doesn’t align perfectly. Our Bridging Finance hub covers short-term options if you need to bridge this kind of genuine timing gap.
Stamp Duty for Home Movers
Unlike first-time buyers, home movers pay full Stamp Duty rates with no relief threshold. On a £400,000 property, this works out at £10,000 under standard rates. If you complete on your new purchase before selling your current home, you’ll also face the additional-property surcharge temporarily, though this is generally refundable if you sell your previous home within three years – our Let to Buy Mortgages page covers this same surcharge-and-refund mechanism in more detail for a related scenario.
If Your Circumstances Have Changed Since Your Original Mortgage
A change in employment, a move from employed to self-employed status, or a shift in your income structure since your original mortgage can genuinely affect how a new application, or a porting reapplication, is assessed. If your credit position has also changed, our Adverse Credit Mortgages page covers how lenders assess this. It’s worth discussing any changes openly with your broker before assuming your previous approval automatically carries over.
Negative Equity: A Genuine Complication
If your property’s value has fallen below your outstanding mortgage balance, moving becomes considerably more complicated, since you won’t have positive equity to put toward your next purchase. It’s worth understanding your realistic position here before committing to viewings or making an offer on a new property.
Costs Beyond the Mortgage Itself
Moving home involves genuine costs beyond your mortgage – estate agent fees, two sets of solicitor fees for the sale and purchase, removal costs, valuation fees, and potentially an arrangement fee on any new or additional borrowing. It’s worth budgeting for these properly from the outset rather than being caught out partway through the process.
Frequently Asked Questions
What does “porting” my mortgage actually mean?
Transferring your existing deal and rate to a new property – technically your old mortgage is repaid and a new one with the same terms is taken out, meaning you still have to requalify.
Am I guaranteed to be able to port my mortgage?
No – porting involves a full new application, including affordability checks and a property valuation, and can be refused if your circumstances have changed.
Can I borrow more when I port my mortgage?
Yes, typically by porting your existing balance at your existing rate and taking a new rate for the additional amount, which can mean two different rates on the same property.
Will I pay an Early Repayment Charge if I downsize?
Most lenders allow a reduction of up to around 10% without charge; beyond that, an ERC typically applies proportionally to the reduction.
Do home movers get any Stamp Duty relief?
No – unlike first-time buyers, home movers pay full standard Stamp Duty rates, though the additional-property surcharge is generally refundable if you sell your previous home within three years.
Get in touch with details of your current mortgage and your moving plans, and we’ll help you understand whether porting or a new deal genuinely suits your situation.
