Pay off mortgage before getting another?

[Etherealcelestialbeing]

Our mortgage rate runs out soon and we will see a big increase in our monthly payments.

We are planning to move house this year. There are few houses that meet our needs on the market so we will have to wait until we find something and then be ready to put ours on the market and move.

DH thinks we should pay off the mortgage on our current house when the rate runs out in the next few months (we have this money in savings) and then use the proceeds from our sale as deposit for the new house. We will keep enough in savings to cover moving fees etc.

I am nervous that once we've spent the savings on the mortgage we will only have a small amount as backup in case we need more during the move.

Is there a downside to paying off the mortgage before we move house?

Is there any way we would be able to borrow less if we have no current mortgage?

I do believe that it can be more difficult to get a mortgage when you are mortgage free. Maybe pay off a large proportion but leave a small amount on mortgage but at new rate. Payments will be smaller and you could put the difference away into high rate savings.

Yes that was my thinking but DH seems to think there's no difference. Do you mind if I ask where you heard that? He is the type to need facts and sources!

I'm wondering if we should speak to a financial advisor? Would a mortgage advisor give unbiased advice?

I would imagine if any part of your existing mortgage is on a decent interest rate then porting that part over to the new house would be sensible otherwise the entire mortgage will be at 2024 rates which might not be good