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Subject Expert
Saying the salary is lower than expected is a perfectly reasonable explanation
I’d recommend being honest and just saying that I thought through responsibilities and pay and I think my skill-set is better suited to the other role. Don’t mention the city part so late in the game.
Best option could be that they fast track you for consideration for the other role (shorter interview cycle now) OR potentially negotiate a short promotion cycle from current role.
Not at all.
Generally recruiters themselves bring up in the first conversation (so that neither side is wasting each other’s time); however, it’s completely ok to bring up if they don’t.
Coach
For my last move, and my current role, I got a bump based on experience and payband