Honest Advice for Homeowners Considering Whether to Move House or Stay and Improve

Written on 9 March 2025 by Nicholas Mendes

Deciding whether to move house or improve your current home is a major decision that requires careful thought. Financial considerations, lifestyle needs, and long-term goals all play a part in making the right choice. While no blog can make the decision for you, this guide outlines key factors to help you weigh up your options and ensure you’re making the best decision for your circumstances.

First Things First – Let’s Talk the Cost of Moving House vs. the Cost of Renovations

Whatever you decide, a financial review is essential. Start by assessing your current mortgage deal - are better rates available? With mortgage rates in 2025 expected to range between 4% and 5%, securing a competitive rate is crucial. If you're considering moving, factor in additional costs like Stamp Duty, legal fees, and estate agent charges.

For those thinking about staying put and making improvements, exploring how much equity you could release from your home is a sensible step. This could fund renovations such as an extension, loft conversion, or energy efficiency upgrades. A mortgage broker like John Charcol can guide you through your options to ensure affordability.

Motivations Matter Too

Your motivations play a big role in this decision. Do you need more space for a growing family? Are you looking for a better location, closer to work or schools? Before making any moves - literally or figuratively -take time to evaluate your current home and how well it meets your needs.

A well-thought-out plan ensures you don’t make a hasty decision based purely on emotion. Equally, if you're thinking of staying, consider whether improvements will truly solve your concerns or if moving would be the better long-term solution.

The 3 Rs – Renovation, Relocation, and Research

Viewing properties in areas you're interested in can help clarify your thoughts. Spend time researching and making a list of must-have features. If you find homes that match your requirements, it might reinforce your decision to move.

On the other hand, looking at new properties may also give you ideas for ways to upgrade your existing home. Certain aspects, such as a larger driveway or proximity to a train station, may only be achievable through moving, whereas adding an open-plan living space or a new kitchen may be possible where you are now.

Comparing home improvement costs with moving expenses is a crucial step. Get quotes for renovations and weigh them against moving costs to see which option makes more financial sense in the long run.

Weighing Up Your Options

Once you've gathered all the information, it’s time to create a clear list of pros and cons.

For example, releasing equity could allow you to fund an extension or add an extra bathroom, but you may not be able to afford both. Renovations also take time and can be disruptive. On the other hand, moving to a house that already has the space and features you need may be simpler but also more costly.

Consider not just the immediate costs but also the long-term expenses, including ongoing mortgage payments, running costs, and potential home improvement loans. This helps provide a clearer picture of which option will be more beneficial for your lifestyle and finances.

Moving House Checklist

If you’ve decided to move, staying organised is key to a smooth transition. Here’s a helpful moving house checklist to guide you through the process:

When moving house, ensuring your mortgage and finances are in order is crucial for a smooth process. Here’s what to check:

Review your current mortgage – check if you can port it to your new property or if early repayment fees apply
Get a mortgage agreement in principle (AIP) – this helps you understand your borrowing power for the new home
Compare mortgage deals – look for better rates or new lender options if switching
Check affordability criteria – lenders will assess your income, debts, and expenses before approving a new mortgage
Arrange for a property valuation – your lender will require this to confirm the property’s value before final approval
Prepare necessary documents – have your proof of income, bank statements, and ID ready for the mortgage application
Factor in moving costs – budget for legal fees, removal services, stamp duty (if applicable), and any potential refurbishment

Staying on top of these mortgage and financial steps will help make your move as stress-free as possible.

Financing Home Improvements

If you decide to stay and improve, there are multiple ways to finance renovations:

Savings – if you have enough in savings, using these funds could be the simplest and most cost-effective way to finance upgrades without borrowing
Remortgaging – if your current fixed deal is ending, a remortgage could allow you to release equity for renovations. However, check for any early repayment charges
Further advance – this allows you to borrow additional funds from your existing mortgage lender without switching deals
Second charge mortgage – if your current lender won’t provide additional funds, a second charge mortgage (secured loan) could be an option. However, these typically have higher interest rates than standard mortgages

Each option comes with its own advantages and potential downsides, so it’s essential to seek expert mortgage advice before committing.

Home Improvement Considerations

If you choose to renovate, it’s important to budget realistically for materials, labour, and potential planning permissions. Popular upgrades include:

Kitchen and bathroom renovations, which can significantly increase property value.
Extensions or loft conversions, ideal for adding more space.
Energy efficiency improvements, such as solar panels or double glazing, which can reduce bills and appeal to future buyers.
Cosmetic updates, such as fresh paint and modern fittings, which can refresh a property at a lower cost.

Whatever route you choose, ensure you get quotes from qualified tradespeople and check work guarantees before proceeding.

How Do You Know Which Financing Option is Best?

Consider:

Long-term affordability – How will extra monthly repayments affect your budget?
Loan-to-value (LTV) ratio – How much equity can you release?
Current mortgage terms – Would remortgaging mean losing a favourable fixed rate?
Early repayment charges (ERCs) – Would switching mortgage deals incur high exit fees?

Taking the time to carefully assess each financing option ensures you make a decision that aligns with your financial situation and future plans.

Final Thoughts – Should I Move House or Stay Put?

While home improvements can be a great way to tailor your home to your needs, they require careful planning and budgeting. Equally, moving to a new property could be the better solution if renovations won’t fully resolve your space or location concerns.

The key is research and preparation. Assess all costs, plan ahead, and ensure you have a clear strategy before making any decisions.

If you need guidance on mortgage options, remortgaging, or releasing equity, our team of expert advisers at John Charcol can help. Call us on 0808 159 5200 for tailored advice and assistance.

Category:Nicholas Mendes