Can I Afford to Move House? A Financial Checklist for UK Sellers (2026)

The question "can I afford to move?" is one of the most common — and most anxiety-inducing — questions homeowners face. It is also one that many people answer with gut feeling rather than hard numbers. The result is either unnecessary hesitation (you could afford to move but talk yourself out of it) or costly surprises mid-transaction (you committed to a purchase before fully understanding the costs).

This guide walks you through a structured affordability framework. By the end, you will have a clear picture of your total moving costs, the equity available in your current home, and whether the numbers work for the move you want to make. If you have already decided to sell and want to understand your net proceeds, you can calculate your selling costs using our free tool.

Step 1: Calculate your usable equity

Your equity is the foundation of your move. It is the difference between what your property is worth today and what you still owe on your mortgage. But raw equity is not the same as usable equity — you need to subtract the costs of selling before you know what you actually have to work with.

How to estimate your property's value

Online valuation tools from Zoopla, Rightmove, and similar sites give a rough starting point, but they can be significantly off — particularly for unusual properties or those in areas with limited recent sales data. The most reliable approach is to invite two or three local estate agents for a free, no-obligation valuation. Compare their figures and ask each one to justify their estimate with comparable recent sales.

Working out your usable equity

Once you have a realistic valuation, calculate your usable equity using this formula:

• Estimated sale price of your current home
• Minus outstanding mortgage balance
• Minus estate agent fees (typically 1.0% to 1.8% plus VAT — see our guide to estate agent fees explained)
• Minus seller's conveyancing costs (typically £800 to £1,500 plus disbursements — see our conveyancing costs breakdown)
• Minus any early repayment charge on your mortgage (see our guide on early repayment charges)
• Equals your usable equity

For example, if your home is worth £350,000, you owe £180,000 on your mortgage, estate agent fees are £5,040 (1.2% plus VAT), and conveyancing costs are £1,200, your usable equity is approximately £163,760. This is the money you have available to put towards your next home and cover the remaining moving costs.

Step 2: Add up your total moving costs

Moving house involves a surprisingly long list of costs. Many homeowners focus on the big-ticket items — estate agent fees and stamp duty — but underestimate the cumulative impact of smaller expenses. For a comprehensive look at what catches people out, see our guide on hidden costs of selling a house.

Costs of selling your current home

For a detailed breakdown of mortgage-related fees, see our guide to mortgage exit fees explained.

Costs of buying your next home

Other moving costs

Step 3: Estimate stamp duty on your next purchase

Stamp duty land tax is often the single largest cost of buying your next home, yet it is frequently left out of early affordability calculations. The amount you pay depends on the purchase price and whether you are a first-time buyer, a standard buyer replacing your main residence, or buying an additional property.

As a homeowner selling and buying simultaneously, you will normally pay the standard residential rates. For a property costing £450,000, for example, you would pay £12,500 in stamp duty under the current standard rates. At £600,000, the bill rises to £20,000.

Use our stamp duty calculator to estimate the exact amount on your next purchase. If you are buying before selling, be aware that you may need to pay the higher-rate surcharge of 5 percentage points upfront, which you can reclaim within three years once your previous home sells. For a full explanation of how stamp duty works when selling and buying, see our guide on stamp duty when selling and buying simultaneously.

Step 4: Check your borrowing capacity

Your usable equity determines your deposit, but most movers also need a mortgage for their next property. Your borrowing capacity depends on your income, existing debts, credit history, and the lender's affordability criteria.

How much can you borrow?

Most lenders will offer between 4 and 4.5 times your annual household income, though some specialist lenders go higher for certain professions or circumstances. For a household income of £60,000, this means a maximum mortgage of roughly £240,000 to £270,000. Add your usable equity as the deposit, and you have your maximum purchase price.

Affordability checks go deeper than income multiples

Since the Mortgage Market Review, lenders stress-test your ability to afford repayments at higher interest rates, typically 2 to 3 percentage points above the rate you are applying for. They also consider your monthly outgoings — childcare, car finance, credit card payments, student loans, and regular financial commitments. Reducing existing debts before applying for a mortgage can significantly increase your borrowing capacity.

Mortgage in principle

Before committing to a move, get a mortgage in principle (also called a decision in principle or agreement in principle). This gives you a written indication from a lender of how much they would be willing to lend, subject to a full application and property valuation. It does not commit you to anything, but it confirms your borrowing capacity and shows estate agents and sellers that you are a serious buyer. Most are valid for 60 to 90 days.

Step 5: Run the affordability calculation

With all the pieces in place, you can now run a complete affordability check. Here is the framework:

1. Maximum purchase budget: usable equity (your deposit) plus maximum mortgage amount.
2. Minus total buying costs: stamp duty, buyer's conveyancing, survey, mortgage fees, and search fees.
3. Minus moving costs: removals, storage, mail redirection, and initial furnishing or repair costs.
4. Minus contingency buffer: at least £3,000 to £5,000 for unexpected expenses.
5. Equals your realistic purchase budget.

A worked example

Consider a couple selling a £350,000 property with £180,000 outstanding on the mortgage and a combined household income of £65,000. Here is how their numbers might look:

• Estimated sale price: £350,000
• Mortgage repayment: -£180,000
• Estate agent fee (1.2% + VAT): -£5,040
• Seller's conveyancing: -£1,200
• EPC: -£80
• Usable equity: approximately £163,680

• Maximum mortgage (4.5 x £65,000): £292,500
• Maximum purchase budget before costs: approximately £456,180

• Stamp duty on a £450,000 purchase: -£12,500
• Buyer's conveyancing: -£1,500
• Survey: -£600
• Mortgage arrangement fee: -£1,000
• Removal costs: -£1,500
• Contingency: -£5,000
• Realistic purchase budget: approximately £433,000

In this example, the couple can comfortably afford a property up to around £430,000 to £435,000. Anything beyond that stretches the numbers and leaves no margin for unexpected costs or the possibility of their current home selling for less than the asking price.

Selling and buying at the same time

Most homeowners need to sell their current property to fund the purchase of their next one, which means being part of a chain. The logistics of selling and buying at the same time add complexity and risk to the process, but they also avoid the cost of temporary accommodation or bridging finance.

The financial advantages of a simultaneous move

• No double-running costs. You avoid paying rent or a second mortgage alongside your existing one.
• No bridging finance. You do not need an expensive short-term loan to cover the gap.
• No storage costs. Your belongings move directly from one property to the other.
• Standard stamp duty rates. Because you sell before (or simultaneously with) buying, you pay the standard residential rates rather than the higher-rate surcharge.

The risks of a chain

The downside is that chains can — and frequently do — break down. If any party in the chain pulls out, the whole transaction can collapse. This is why being sale-ready from day one matters. If your legal paperwork, property searches, and disclosure forms are already in order, you are far less likely to cause delays that give other parties a reason to walk away. Take our sale readiness check to see how prepared you are.

Bridging finance: when it makes sense

If you find your dream home before your current property sells, bridging finance can bridge the gap. But it comes at a significant cost and should be considered a last resort rather than a default strategy.

How bridging loans work

A bridging loan is a short-term, secured loan — typically lasting 6 to 18 months — that allows you to buy before you sell. You borrow against the equity in your current home (or sometimes against both properties), complete the purchase, and then repay the loan when your current property sells.

Bridging finance costs

On a £200,000 bridging loan held for four months at 0.8% monthly interest, you would pay roughly £6,400 in interest plus a £3,000 arrangement fee and legal costs — a total bridging cost of approximately £10,000 to £12,000. This is money that comes directly out of your moving budget and reduces what you have available for your next home.

When bridging finance is worth considering

• You have found a property that is genuinely irreplaceable and you will lose it if you wait for your sale to complete.
• Your current home is highly sellable and you are confident it will sell quickly.
• You have substantial equity and the bridging costs represent a small proportion of your overall budget.
• You have taken professional financial advice and are comfortable with the risk of your current home taking longer to sell than expected.

When you can afford to move

The numbers work in your favour if the following conditions are met:

• Your usable equity covers a sufficient deposit. Ideally 15% or more of your target purchase price, leaving you with access to competitive mortgage rates.
• Your mortgage borrowing comfortably covers the gap. Monthly repayments on the new mortgage should leave you with a healthy margin after all household expenses — not just scraping by.
• You have budgeted for all moving costs. Including stamp duty, conveyancing on both sides, surveys, removal costs, and a contingency.
• You have a cash buffer after the move completes. Moving into a new home with zero savings is risky. Boilers break, roofs leak, and unexpected costs are the rule rather than the exception.
• Your income is stable and likely to remain so. If there is any uncertainty about your employment or income, now may not be the time to stretch your finances with a larger mortgage.

When you cannot afford to move — yet

If the numbers do not stack up today, that does not mean they never will. Here are the most common scenarios where moving is not yet affordable, and what you can do about each one.

Not enough equity

If your usable equity is too low for a meaningful deposit on your next home, focus on building it. Overpay your mortgage if your lender allows it (most permit up to 10% per year without penalty). Even modest overpayments compound over time and reduce your outstanding balance faster. Alternatively, consider improvements that genuinely add value — a loft conversion, a kitchen renovation, or adding a bathroom — but be realistic about the return on investment.

Early repayment charge makes it too expensive

If you are locked into a fixed-rate mortgage with a substantial early repayment charge, it may be worth waiting until the fixed-rate period ends. Check your mortgage terms carefully — most fixed-rate deals last two to five years, and the ERC typically reduces year by year. For a full explanation, see our guide on early repayment charges on mortgages.

Insufficient borrowing capacity

If your income does not support the mortgage you need for your target property, there are a few options. Paying off existing debts such as car finance, credit cards, or personal loans frees up affordability in the lender's assessment. If your income is likely to increase — through a promotion, a partner returning to work, or other changes — waiting six to twelve months may open up a larger mortgage. You could also consider a less expensive area or property type.

The target property is simply out of reach

Sometimes the honest answer is that the move you want is not financially possible right now. In that case, reassess your priorities. Could a different location, a slightly smaller property, or a house that needs some work bring the numbers into line? Stretching yourself to the absolute maximum to buy a property you can barely afford is one of the most common financial mistakes homeowners make.

Monthly affordability: can you sustain the new mortgage?

Affording the move is only half the equation. You also need to be confident you can sustain the ongoing costs of your new home. Before committing, calculate your monthly outgoings after the move:

• New mortgage repayment
• Council tax (which may be higher in your new area)
• Buildings and contents insurance
• Energy bills (larger homes cost more to heat)
• Service charges or ground rent (if leasehold)
• Commuting costs (if your journey changes)
• Maintenance budget (a general rule is 1% of the property's value per year)

Compare this total with your household income. A common guideline is that your total housing costs — mortgage, insurance, council tax, and essential maintenance — should not exceed 35% to 40% of your gross household income. If the new property pushes you significantly above this threshold, the move may be affordable on paper but unsustainable in practice.

Preparing to move: getting sale-ready

Once you are satisfied that the numbers work, the next step is preparation. Getting your property sale-ready before you list it can shave weeks off the transaction, reduce the risk of the chain collapsing, and help you achieve a stronger price. Pine helps you complete your legal paperwork and order property searches before you even find a buyer, so your solicitor can hit the ground running on day one.

Take our sale readiness check to see where you stand, or calculate your selling costs to get a precise picture of your net proceeds.

Sources and further reading

• Stamp Duty Land Tax Rates (GOV.UK)
• Higher Rates for Additional Properties (GOV.UK)
• Mortgages — Information for Consumers (FCA)
• Estimate Your Overall Home Buying Costs (MoneyHelper)
• Mortgage Affordability Calculator (MoneyHelper)

Related guides

• Conveyancing Costs Breakdown
• Estate Agent Fees Explained
• Hidden Costs of Selling a House
• Selling and Buying at the Same Time
• Bridging Finance: What Sellers Need to Know
• Early Repayment Charges on Mortgages
• Mortgage Exit Fees Explained
• Stamp Duty When Selling and Buying Simultaneously

Frequently asked questions