How to apply for a mortgage for my next home

If you’ve lived in your first home for a while now, you might feel like it’s the right time to move on. Maybe you need a bigger space, need to be closer to work, or require a home that fits your lifestyle and aspirations a bit more. Whatever the reason, applying for a mortgage on your next home is a slightly different process than it was for your first, but it’s perfectly manageable once you understand the steps.

This guide is designed to take you through the process, showing what you need to think about, what lenders look for, and how to make the most of the equity you’ve built in your current property. 

Even if you already own a home, your deposit is still an important part of securing a mortgage. The good news is that you can often use any equity from your current property as a deposit for your next home.

Alongside this, it’s important to work out how much you can realistically borrow. Lenders consider your income, debts, and monthly expenses. Tools like mortgage calculators for home movers give you an estimate of your borrowing power and help you set a realistic budget. Moving up the property ladder usually means higher monthly payments, so it’s important to ensure the numbers work for your lifestyle. 

Although you’ve paid a mortgage before, lenders will still check your credit history and credit score. Paying bills on time, avoiding creating new credit accounts, and checking your report for errors can improve your chances of getting the best next home mortgage deals.

Your previous mortgage history can be an advantage. Consistently paying your mortgage on time shows your lenders that you are a reliable borrower, which can make approval smoother and may give you access to better rates.

Deciding whether to sell your current home before buying your next one or to buy first, will impact your mortgage application. Selling first will give certainty over the equity available for your next deposit, while buying first gives you more time to find the right property but may require a bridging loan or savings to cover two mortgages temporarily.

Speaking with a mortgage adviser for home movers can help determine which option is best for your finances and timeline. You can also explore some of our buying schemes for home movers here, like Part Exchange and Smooth Move, which are designed to make the move into your next home easier.

A Mortgage in Principle, sometimes referred to as a Decision in Principle, is just as useful for home movers as it is for first time buyers. It shows estate agents and new build developers roughly how much you might be able to borrow based on your finances and equity.

This is particularly helpful when making an offer on a new home because it demonstrates you are a serious buyer and sets a clear budget.

Mortgages for your next home will be similar to your first, but owning a property may allow you to access better deals, subject to your circumstances. Fixed-rate mortgages let you budget easily because payments stay the same, while variable rate mortgages fluctuate with interest rates and could save you money if rates drop. Tracker mortgages follow the Bank of England base rate, plus a margin, giving a more predictable yet flexible option.

A mortgage broker for home movers compares deals from multiple lenders, helping you find a plan that suits your budget, deposit, and financial goals, without getting lost in the fine print. At Gleeson, we work with several independent mortgage advisors who can help you find a suitable mortgage offer.

Once you've completed all the above, it’s time to officially apply for your mortgage. Lenders will request documents such as proof of income, bank statements, identification, details of your current mortgage, and evidence of your deposit. They will also carry out a property valuation for your next home. Once approved, you’ll receive a mortgage offer, which means you can move forward with your purchase.

If you are thinking about moving up the property ladder, why not check out our other home mover guides. From managing your sale and purchase to tips for securing the best mortgage, we’ve got all the practical advice you need to make your next move as smooth as possible.

Please note: Gleeson Homes is not regulated by the FCA and does not offer financial advice. This article does not constitute financial advice, we recommend you seek specialist advice.