Upsizing to a Family Home: What You Need to Know About Your Mortgage
There is a moment that a lot of homeowners will recognise.
You bought your first place and it was perfect. Exactly what you needed at the time. But something has changed since then. Maybe there is a baby on the way. Maybe the one you already have is getting bigger and the spare room is not really a spare room anymore. Maybe you have started Googling primary school catchment areas at 11pm and quietly panicking about whether you are in the right one.
Upsizing to a family home is one of the most common reasons people come back to us after buying their first property. And it comes with a different set of questions than buying for the first time.
It Is Not Just About Getting a Bigger Mortgage
The assumption most people make is that upsizing is just about borrowing more. In reality there is quite a bit more to it than that.
How much equity you have built up in your current home plays a big role. The more your property has grown in value and the more of your mortgage you have paid off, the stronger your position when it comes to the next purchase. That equity becomes your deposit for the next place, and a bigger deposit means better rates and more options.
It is worth getting a realistic idea of what your current home is worth before you start planning. Estate agents will give you a valuation, and while those can vary, it gives you a starting point for the numbers.
The School Run Factor
Catchment areas are serious business and anyone who has been through the process of choosing a primary school knows this.
The right postcode can make a real difference to which schools your children can access. And moving into a catchment area at the right time matters too. Some schools look at where you live at the point of application, which means timing your move can be just as important as where you are moving to.
This is the kind of thing that starts to shape property searches in a very specific way. Instead of browsing broadly, you are often looking at a handful of streets in a particular area. That focused search means you need to be ready to move quickly when the right place comes up, which brings us back to having your mortgage sorted in advance.
How a Broker Helps With Upsizing
Upsizing is not just a bigger version of what you did the first time. There are more moving parts. You are buying and potentially selling at the same time. You are thinking about chains, timing, bridging the gap between completion dates and making sure your family home mortgage works for where you are now, not where you were a few years ago.
A broker can look at your current mortgage, your equity, your income now versus when you first bought and what the market looks like for the move you are planning. That full picture approach saves a lot of time and avoids surprises.
For a helpful overview of what lenders look at when you apply, our guide on mortgage affordability covers it well. And if you are considering what protection you need to put in place for a growing family, our piece on life cover and your mortgage is worth a read too.
At City Mortgage Solutions, we help families make the move up when the time is right. If you are starting to think about upsizing and want to understand what is possible, get in touch with our team and we will give you a clear picture of where you stand.
Risk Warning: Your home may be repossessed if you do not keep up repayments on your mortgage.
Frequently Asked Questions
When is the right time to start thinking about upsizing?
Earlier than you think. If you are expecting a baby or your children are approaching school age, getting your mortgage options understood well in advance gives you much more flexibility.
How much equity do I need to upsize?
There is no fixed answer, but the more equity you have the stronger your position. A broker can look at your current situation and tell you what is realistic based on current lender criteria.
Can I port my existing mortgage when I upsize?
Some mortgages are portable, meaning you can take the existing deal with you to a new property. Whether that is the right move depends on your current rate, the new property value and what else is available. A broker can help you compare the options.
What if my income has changed since my first mortgage?
That is absolutely fine. Lenders will reassess your affordability based on your current income and circumstances. Things like having children can affect how lenders calculate what you can borrow, so it is worth getting updated advice.
Do I need to sell before I buy when upsizing?
Not necessarily, though it depends on your financial position. Some buyers make an offer subject to their sale. Others use bridging finance to move without waiting. Each approach has pros and cons worth discussing with a broker.