If you’re moving home and still have time left on your current mortgage term, you’ll need to decide whether to transfer your existing deal or take out a new mortgage. 

Both options have pros and cons and the right choice depends on your personal circumstances, your lender’s rules and the mortgage deals available at the time. This guide explains how each option works, why you may or may not be able to use them and what else to consider when arranging your next mortgage. 

This article is for general information only and is not financial advice. For tailored guidance, you should speak to a qualified mortgage broker.

What is “transferring” a mortgage? 

Transferring means moving your existing mortgage to your new property, keeping the same interest rate and terms (for the remaining period of your deal). Many mortgages are portable – but not all – and you’ll still need to reapply with your lender to confirm you meet their current affordability checks. 

Why you might choose to transfer: 

• You have a low interest rate you don’t want to lose 

• You want to avoid paying an Early Repayment Charge (ERC) for leaving your current deal early 

• You’re happy with your current lender and terms 

Why transferring might not work for you: 

• Your lender may not allow it, or may only allow it under certain conditions 

• You might not pass the lender’s current affordability or credit checks 

• You need to borrow more and the extra borrowing isn’t available on competitive terms 

• You’ve found a better deal elsewhere, even after factoring in any Early Repayment Charges (ERCs) 

Taking out a new mortgage 

A new mortgage means starting fresh with a different product, which could be with your current lender or a new one. 

Why you might choose a new mortgage: 

• Your existing lender won’t let you transfer 

• You want to borrow more and a new lender offers better terms on the full amount 

• Rates have dropped and you can get a better deal, even after paying any ERCs 

• You’re changing the type of mortgage (eg from fixed to tracker) 

Potential downsides: 

• You might face ERCs if you’re leaving your current deal early 

• New arrangement fees and set-up costs 

• The new interest rate could be higher than your existing one 

Do you still need an Agreement in Principle if you already have a mortgage? 

In most cases, you’ll still need an Agreement in Principle (AIP) when you’re moving home. An AIP is a statement from a lender confirming they could, in theory, lend you a certain amount based on basic checks. 

Just because you have a mortgage already, you’re not guaranteed to get another one. Having an AIP is useful to give you clarity and show estate agents that you have the finances in place to afford your move. 

Lenders still need to take into account whether your financial circumstances have changed, whether you’re upsizing or moving to a more expensive home and more. 

While it’s not a guarantee, an AIP: 

• Shows sellers and estate agents you’re serious about buying 

• May be required before booking viewings 

• Gives you a realistic idea of your budget 

Most AIPs are valid for two to three months. 

Should you use a mortgage broker or go direct to the bank? 

You can do either but each route has its pros and cons. 

Mortgage Broker	Direct to Lender
Access to deals from multiple lenders	Only offer their own products
Tailored advice based on your circumstances	Advice limited to their own products
Broker does the legwork	You’ll need to contact several lenders yourself
Knows which lenders are most likely to accept you	Risk of applying to unsuitable lenders
May charge a fee, but can often save you money long-term	Usually no broker fee – just product fees

Tip: If using a broker, choose one who is “whole-of-market” so they can recommend from the widest range of options. 

Can you get an AIP online? 

Yes but most online AIPs only run very basic checks, meaning they might not be accurate. A broker-led AIP is usually more thorough, reducing the risk of your mortgage application falling through later. 

Choosing the right mortgage broker 

If you decide to use a broker, look for: 

• FCA registration to ensure they’re authorised to give mortgage advice 

• Whole-of-market access to provide you with deals from a wider range of lenders 

• Transparent fees whether fixed, hourly, percentage-based, or commission-only, they should state these clearly upfront 

• Positive client reviews on independent sites like VouchedFor 

• Good communication and willingness to explain the process clearly 

Whether you transfer your current mortgage or arrange a new one depends on a mix of practical, financial and personal factors. The best way to make an informed choice is to get a clear picture of your options before you commit. 

Book your free call with Ernest Grant Mortgages, a top-rated, whole-of-market mortgage broker and walk away with a personalised budget and a clear idea of what you can afford.