Moving home can mean your mortgage needs to change, especially if your next property costs more than your current home.
You may be able to use equity from your current property, port your existing mortgage, borrow more from your current lender or compare a new mortgage elsewhere.
The right route depends on your deposit, income, affordability, current mortgage deal, early repayment charges and the property you want to buy. This guide explains what to check before you start making offers.
What to know about borrowing more when moving home
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Your equity can support the next deposit
The money left after repaying your current mortgage can usually go towards your next home.
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Lenders check affordability again
Even if you already have a mortgage, your lender will reassess your income, spending, credit profile and new property.
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Extra borrowing may sit on a new rate
If you port your current deal, the extra amount may be placed on a different mortgage product.
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Compare porting with a new mortgage
Your current lender may not always be the best fit, so it is worth comparing both routes before deciding.
Need to borrow more for your move?
What does borrowing more when moving home mean?
Borrowing more when moving home means increasing your mortgage so you can buy your next property.
For example, you may have £180,000 left on your current mortgage but need a £260,000 mortgage for the new home. The extra £80,000 is additional borrowing.
This might happen if your next home costs more, your available deposit is lower than expected, or you want to keep some money back for moving costs and the first few months after completion.
Borrowing more does not always mean starting again. Depending on your current mortgage and lender, you may be able to port your existing deal and add extra borrowing. Alternatively, you may choose a new mortgage for the full amount.
What the new mortgage could mean each month
The amount you borrow affects your monthly payment, so it helps to check the difference before you make an offer.
Based on a 25-year repayment mortgage at an illustrative rate of 5%:
- Current mortgage of £180,000: around £1,052 per month
- New mortgage of £300,000: around £1,754 per month
- Estimated monthly increase: around £702 per month
The figures above are simplified examples. Your actual payment will depend on the mortgage amount, interest rate, term, fees, lender and product.
Estimate your own figures with our repayment calculator →
How equity can help you borrow more
Equity is the part of your current home that is left after your mortgage is repaid.
A simple way to estimate it is:
Property value minus mortgage balance = equity
For example:
- Current home value: £300,000
- Mortgage left to repay: £180,000
- Estimated equity before selling costs: £120,000
This equity can usually go towards the deposit for your next home. A larger deposit can reduce your loan-to-value, or LTV, which may help you access more mortgage options.
However, your full equity figure may not be available for the next purchase. Estate agent fees, legal fees, removals, property tax and setup costs can all reduce the amount you have left to use.
That is why it helps to work out your expected equity and your moving costs together before deciding how much extra borrowing you may need.
What lenders check before offering more
Lenders will usually reassess your mortgage when you move home, even if you already have a mortgage.
They may look at:
- your income and employment
- regular spending and household costs
- loans, credit cards or car finance
- childcare or school fees
- your credit profile
- your deposit and loan-to-value
- the new property
- the mortgage term you choose
This is why your borrowing position can change over time. A pay rise, reduced debts or more equity may improve your options. Higher
Ways to borrow more when moving home
There is no single route that works for every home mover. The right option depends on your current mortgage, new property price, income, equity and monthly budget.
Use more equity from your current home
More equity can increase the deposit you have available for your next home.
- A larger deposit can reduce your loan-to-value
- A lower LTV may improve your mortgage options
Port your mortgage and add extra borrowing
If your current deal is portable, you may be able to move it to the new property and borrow more alongside it.
- Your existing deal may stay in place for part of the mortgage
- The extra borrowing may sit on a new product
Compare a new mortgage
A new mortgage may be worth considering if porting is not available or another lender could support your move more clearly.
- Different lenders assess income and commitments differently
- A new deal may offer a simpler overall structure
Extend the mortgage term
A longer mortgage term can reduce the monthly payment and may help affordability.
- Lower monthly payments may increase your options
- A longer term can mean paying more interest overall
Reduce monthly commitments
Reducing regular outgoings can improve affordability before you apply.
- Credit cards, loans and car finance can affect borrowing
- Reviewing commitments early can help clarify your position
Consider a joint mortgage
A joint mortgage may increase the total income used for the application.
- This can help improve affordability
- Everyone named on the mortgage is usually responsible for the repayments
Check your moving budget before you offer
Borrowing more can help you move to the home you want, but the monthly payment still needs to feel manageable.
Before making an offer, it helps to check three things:
- How much equity you expect to have after selling.
- How much extra borrowing you may need.
- What the new monthly payment could look like.
This gives you a clearer view of the property price that may work before you commit to a move.
See what extra borrowing could look like
Muttuo can help you compare your moving home mortgage options across over 100 lenders.
Porting vs a new mortgage when borrowing more
If your current mortgage deal is portable, you may have two main options.
You could port your current deal and add extra borrowing with your existing lender. Alternatively, you could take a new mortgage for the full amount, either with your current lender or a different one.
Need to borrow more
Porting with extra borrowing
Your existing deal may move with you, while the extra borrowing sits on a new product.
One new mortgage
Take a new mortgage
Your full mortgage balance moves onto one new deal, subject to lender approval.
Porting may help if your current rate is worth keeping or leaving the deal would trigger an early repayment charge.
A new mortgage may feel simpler if it gives you one rate, one end date and a clearer structure.
The right route depends on the full cost, not just the interest rate.
What could limit extra borrowing?
Extra borrowing may be possible, but lenders still need to feel comfortable with the mortgage.
The amount available can be affected by your income, regular commitments, credit profile, property value, mortgage term and the lender’s own criteria.
For example, a lender may offer less if your monthly commitments have increased since you took out your current mortgage. They may also be more careful if the new property has unusual features, a higher loan-to-value or a shorter mortgage term.
This is not always a barrier. It simply means the lender choice matters.
How to improve your chances before applying
A few simple steps can make your position clearer before you move.
Check your credit report, review your monthly commitments and avoid taking on new borrowing before applying if possible. It can also help to gather recent payslips, bank statements, proof of bonuses or overtime, and details of your current mortgage.
If your income is variable or self-employed, prepare your documents early. Different lenders may assess income in different ways, so having the right evidence ready can make the process smoother.
How Muttuo Mortgages can help
Borrowing more when moving home is easier when you can compare the options properly.
Muttuo Mortgages can help you:
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check what you may be able to borrow across over 100 lenders
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compare porting, extra borrowing and new mortgage options
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understand how your equity, income and monthly costs affect your move
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plan your next step before you make an offer
Our team offer whole-of-market mortgage advice, helping you move forward with a clearer view of what may be possible.
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Borrowing more when moving home FAQs
These FAQs answer common questions about borrowing more when moving home, including extra borrowing, porting, equity, affordability and whether a new mortgage may be worth comparing.
Can I borrow more when moving home?
Yes, you may be able to borrow more when moving home.
The amount depends on your income, spending, equity, deposit, credit profile, mortgage term, property value and lender criteria. A broker can help you compare whether extra borrowing may be available through your current lender or a new lender.
Can I borrow more if I port my mortgage?
You may be able to borrow more if you port your mortgage, depending on your lender and affordability.
Your existing mortgage deal may be ported for part of the balance, while the extra borrowing may sit on a new product with a different rate and end date.
Does equity help me borrow more?
Equity can help because it may increase the deposit you can put towards your next home.
A larger deposit can reduce your loan-to-value, which may improve the mortgage options available. However, lenders will still check whether the new monthly payment is affordable.
Is it better to port or get a new mortgage?
It depends on your current deal, early repayment charges, the extra borrowing you need and the rates available when you move.
Porting may help if your current rate is worth keeping. A new mortgage may be better if it offers a simpler structure or better overall cost.
Can a longer mortgage term help me borrow more?
A longer term can reduce the monthly payment, which may help affordability.
However, it can also mean paying more interest over the life of the mortgage. It is worth comparing both the monthly payment and the total cost before deciding.
What can stop me borrowing more when moving home?
Common factors include income, monthly commitments, credit history, loan-to-value, property type and lender criteria.
If one lender cannot offer the amount you need, another lender may assess your circumstances differently. That is why comparing options can be useful before making an offer.
