As analysis shows a surge in larger mortgages across the UK, we investigate the pros and cons of relocating in pursuit of your dream home.

According to recent analysis from estate agent Savills, the number of mortgages worth £500,000 or more has risen by 18% since 2021, driven by buyers outside of London and Southern England.

Following the company’s analysis of FCA lending data, the number of £500,000-plus mortgages has increased by 16% in the North of England and 17% in the Midlands, while Scotland, Wales and Northern Ireland have seen the largest combined increase, at 28%.

In contrast, while the capital remains the largest market for £500,000+ mortgages (accounting for 42% of them last year), the number issued in London has fallen by 2.4% over the past five years. The South East also saw a similar 2.3% decline. A spokesman for estate agent Savills said that half-million-pound mortgages are no longer solely the preserve of buyers in London and the South East.

Property market shift

‘The growth in £500,000-plus mortgages outside London and the South East reflects an interesting shift in the UK property market,’ says Les Pick, MB Associates’ Sales & Operations Director. ‘Increasingly, buyers are recognising that relocating can offer considerably better value for money, particularly when looking for larger family homes or properties that accommodate changing lifestyles.

‘Flexible working arrangements have undoubtedly given some buyers greater freedom to consider locations that might previously have been impractical,’ adds Les. ‘For homeowners with substantial equity built up in their existing properties, relocating can provide an opportunity to significantly improve their quality of life.’

A bigger home for your money

Of course, a £500,000 mortgage will generally get you far more for your money outside of London and the South East. If you’re considering relocating in pursuit of your ‘forever’ home, here are the positives of moving area, as well as some negatives it’s worth considering before upping sticks…

Pros of relocating to a new area

More space for your money – whether it’s a detached house, extra bedrooms or bathrooms, a larger outside area, or off-road parking, moving out of London or the South East will make your money go further, meaning you’re more likely to afford that larger dream home.

Easier access to nature – moving away from the capital (or any major city hub) will generally afford you easier access to green spaces, such as heathland or woodland, or stunning coastland.

The excitement of a fresh start – a new area can offer a whole new lifestyle, including budding social circles, new shops, restaurants, bars, and fresh local entertainment.

Cons of relocating to a new area

Leaving your current support network – from friends, family, and neighbours to GP surgeries and dentists, you’ve likely built up a strong network in your current area. Leaving this behind can be hard. If you’re considering moving areas, having a plan to build a new social circle can help soften the blow. Are there any clubs, classes or societies you can join once you move? Volunteering is also a great way to meet new people while giving back to your new community.

High moving costs – mortgage borrowing costs are currently high, and you'll also need to factor in other expenses, such as stamp duty, estate agent fees, legal fees, surveys, and removal costs. Speaking with an experienced adviser can help you work out what you can afford, so you don’t stretch yourself too far.

Element of risk – you won't know whether you'll like the new area or miss where you live now until you move. That said, you may love it – but if you don't, it may not be possible to move back.

Long-term implications of bigger mortgages

‘A larger mortgage doesn't necessarily mean greater affordability, says Les. ‘Borrowers need to consider the long-term financial implications, particularly with mortgage rates remaining elevated compared with the historically low levels experienced a few years ago.

‘It's also important to look beyond the property itself,’ Les adds. ‘Employment opportunities, commuting costs, local amenities and proximity to family and friends can all influence whether a relocation is ultimately successful.’

Reliable mortgage advice

If you’re considering a house move – whether you want to relocate or simply find your forever home in your current neighbourhood – we’re here to help you explore your options. ‘We always encourage buyers to consider not simply how much they can borrow, but how comfortably they can afford their mortgage while maintaining the lifestyle they want,’ says Les. ‘Ultimately, the dream home should improve your quality of life, not become a financial burden.’