Moving Up the Property Ladder: How Much More Can You Borrow?

Thinking of moving up the property ladder? Here’s how lenders decide how much more you can borrow when upgrading your home.

Buying your next home is exciting — but one of the first questions is always the same: how much more can I borrow? Moving up the property ladder is very different from buying your first home. You already have a mortgage, commitments, and sometimes a growing family to factor in.

Here’s how lenders really work out how much you can borrow when you move, and the steps to make sure you’re prepared.

Your current mortgage matters

When you move home, your existing mortgage plays a big role. Lenders will look at how much is left, whether you’re porting it, and how much extra you’ll need to borrow for the new property.

Income and outgoings are still key

Just like with a first mortgage, lenders assess your income and spending. Loans, childcare costs, or credit cards can all reduce how much extra you can borrow. Even if your salary has gone up, higher commitments may balance it out.

Equity in your current home

The value of your current home compared to your outstanding mortgage (your equity) is an important factor. More equity means a larger deposit for the next property, which can open up better rates and borrowing options.

What about moving costs?

Stamp duty, estate agent fees, and moving expenses all add up. Lenders don’t cover these costs, so you’ll need to budget for them on top of your deposit and mortgage.

Planning ahead makes the process smoother

Knowing your numbers before you start house-hunting is essential. A broker can help you calculate how much you can borrow, what your monthly payments will look like, and which lenders are likely to be a good fit.

The Bottom Line

Moving up the ladder is achievable with the right preparation. Understanding your borrowing power early means you can focus on properties that truly fit your budget and avoid surprises.

Your home may be repossessed if you do not keep up repayments on your mortgage or other loan secured against it.

• Do lenders let you borrow more when moving home?

  Yes, but it depends on your income, outgoings, equity, and current mortgage.

• What role does equity play when moving up the ladder?

  The more equity you have, the larger deposit you can put down on your next home, improving your options.

• Should I get advice before house-hunting?

  Definitely. Knowing your borrowing power helps you avoid wasting time on properties outside your budget.