Content Writer
Mortgage Advisor & Director
If you’re moving home but have an existing mortgage, you’ll need to think about how to finance your property move. Whatever your reason for moving or relocating, a home mover mortgage could be the right solution. Here we’ll explain how they work and where to find the best deal - even if you’re self-employed or have bad credit.
What is a home mover mortgage?
This is the name for a mortgage you take out when you’re selling your current property and buying a new one. You might choose to port your existing mortgage (transfer it to your new property) or take out a completely new mortgage with your current lender or a different one.
Compare home mover mortgage deals for free
Lending criteria for a home-mover mortgage
Each lender will have their own rules for assessing home mover mortgage applications, and these can vary significantly. The main areas they’ll focus on are:
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Your deposit (equity): The money you use as a deposit for your new home will usually come from the equity in your current property. The larger your deposit (amount of equity), the more choice you’ll have between lenders, and potentially be able to access better rates.
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Loan-to-value (LTV): Like with your current home, your deposit dictates your LTV ratio. If you’ve built up some equity, you may be borrowing with a lower LTV than before, which can mean better deals. Certain lenders also have LTV maximums that depend on your employment, the type of property you’re moving to, and other factors.
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Income and employment: Your source of income plays an important role. If you’re self-employed, you’ll be treated differently (we’ll cover this in more detail later). Permanent PAYE employees can be the simplest for a home mover mortgage, but if you’re on a zero-hour contract, are in a probation period, or have complex income, your choice of lenders will be smaller.
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Credit history: A clean credit file can give you access to the widest range of lenders and home mover mortgages. If you have bad credit, depending on the age and severity, you may need to approach a specialist bad credit lender (we’ll cover the specifics on this shortly).
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Property type: The type of property you’re moving to will impact your choice of lenders and the deals you can access. Each lender has preferences around property types. If you’re moving to a leasehold, a non-standard construction property, a building with unique features, or anything unusual, you may have fewer lenders willing to offer a mortgage.
Home mover mortgage calculator
When deciding your affordability for your home mover mortgage, lenders will assess your income, outgoings, debts, and any other financial commitments (like dependants if you’re a single-income parent) to ensure you can comfortably meet your new repayments.
If you want to get an idea of how much you could borrow with a home mover mortgage, the simplest calculation is to multiply your gross household income by 4.5 times as this is the average salary multiple used by lenders (but it can be possible to stretch this to 5 times or even 6 times your salary in certain situations).
If you want to see what your repayments for the new mortgage will look like based on the size of your deposit and the property’s value, you can use our repayment calculator to work out some rough figures:
Compare home mover mortgage deals
Our free mortgage comparison tool is tailored to show rates from lenders across the whole UK market, including those that offer competitive deals for home movers. You can customise your search by deposit size, mortgage type, term length, and more.
These rates are updated daily, allowing you to view and compare the best home mover mortgage deals available today. If you select a deal to find out more, one of our experienced brokers can help you arrange your mortgage and ensure it’s the best type of finance based on your circumstances and goals.
Whether you’re moving to your second home or your forever home, you can compare all the best home mover mortgage deals currently available in the UK here:
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Home mover mortgage advice for bad credit
If you’ve got adverse credit, perhaps since you took out your current mortgage, it’s important to understand how this could impact your home mover mortgage. Here’s a quick overview of some examples:
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Low credit score: May reduce the maximum LTV available for a home mover mortgage, meaning you might need a larger deposit or pay slightly higher rates.
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Missed or late payments: For a home mover mortgage, isolated missed or late payments may be acceptable, but recent mortgage arrears can be more of an obstacle with mainstream lenders.
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CCJs: Lenders may still consider offering a home mover mortgage if the CCJ is for a small amount or if it’s already been satisfied (especially if it was over 12 months ago).
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Defaults: Smaller or older defaults are more acceptable to lenders for home mover mortgages, but more serious issues can mean a specialist lender is better to approach.
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IVAs: Some lenders will consider a home mover mortgage if the IVA is completed and satisfied, but this type of bad credit usually requires specialist support from an advisor.
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Bankruptcy: As this is one of the most severe forms of bad credit, you’ll usually need to wait several years after discharge before a home mover mortgage is possible with most lenders.
Ideally, with bad credit, it’s best to have a discussion with a specialist advisor who has experience dealing with your specific type of bad credit. This is because they can evaluate your situation and introduce you to the most appropriate lender to ensure you get the most competitive rates and avoid any unnecessary rejections.
Getting a mortgage if you’re self-employed
Being self-employed doesn’t prevent you from moving home and getting a mortgage, but lenders will need more evidence of your income, which may include:
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Sole traders: If you’re a self-employed sole trader, you’ll usually need at least 2 years’ accounts (SA302s or tax returns), but certain lenders can be flexible with this for a home mover mortgage, requiring just 1 year’s accounts.
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Company directors: As a limited company director, you’ll usually need details of both salary and dividends for your home mover mortgage, though some lenders will consider retained profits.
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Contractors: Lenders may treat you like a PAYE employee or use your day rate to calculate affordability, but this can vary, and so can the rest of the supporting evidence you need. The type of contracting you do (umbrella company, consultant, freelancer, etc.) can also impact the best lender to use.
If your self-employed income is complex, variable, or you only have a limited amount of proof, and you want a home mover mortgage, an experienced advisor can help you find a lender who takes a more flexible view.
Why choose Teito for your home mover mortgage?
With our free comparison tool, you can explore the latest mortgage rates to get an idea about what your repayments could look like when you move. However, if you want a more accurate comparison or prefer tailored guidance, our experienced advisors understand the unique considerations involved in moving home.
Here are some more reasons why homebuyers across the UK trust us to help them get a home mover mortgage:
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Easily compare current home mover mortgage rates online for free
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Our brokers are 5-star rated on leading review sites
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Free initial chat with a specialist advisor with no obligation to proceed
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Access to lenders with exclusive home mover mortgage deals
If you’d like to compare home mover mortgage rates or speak with a broker who specialises in home mover mortgages, you can get started here.
FAQs
We work with experienced brokers who understand the Essex property market, including areas slightly further afield in the county like Southend-on-Sea (Southend).
While local knowledge can be useful, it’s more important to have the right advisor for your circumstances, especially if you have a more complex income or credit history since you bought your current home.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.