A common concern for homeowners considering equity release is whether taking a Lifetime Mortgage means they must remain in the same property for the rest of their lives. Many Lifetime Mortgages may be portable, but moving is subject to the plan terms, lender criteria and the suitability of the new property.
What Does Porting A Lifetime Mortgage Mean?
Porting generally means transferring the Lifetime Mortgage to a new property rather than automatically repaying it when you move. The lender will need to assess the new home and confirm that it meets its lending criteria.
Will Every Property Be Acceptable?
No. Lenders have property criteria, and some property types, locations or construction methods may not be acceptable. If you think you may move in the future, this should form part of the advice discussion before a plan is selected.
What If The New Home Is Worth Less?
If you move to a lower-value property, the lender may require part of the Lifetime Mortgage to be repaid so that the borrowing remains within its permitted limits. The exact position depends on the plan and circumstances.
Could Early Repayment Charges Apply?
Lifetime Mortgages can include Early Repayment Charges. Some plans may provide specific moving provisions, but the terms vary. You should understand how a future move could affect the loan before proceeding.
Why Future Plans Matter
Later life lending can run for many years. Even if you have no intention of moving today, health, family circumstances or lifestyle preferences may change. Discussing possible future moves can help ensure those considerations are included in the advice process.
What Alternatives Should Be Considered?
Depending on your objectives, alternatives could include downsizing before borrowing, using savings, other forms of later life borrowing or changing the amount you plan to release. The right approach depends on your circumstances.
How HFA Later Life Can Help
HFA Later Life can explain how moving home may work with a Lifetime Mortgage and consider your future plans as part of the advice process. Visit https://hfalaterlife.uk to arrange a no-obligation conversation.
FAQs – Can You Move House If You Have A Lifetime Mortgage?
Can I move after taking a Lifetime Mortgage?
Potentially, subject to the lender’s terms and the new property being acceptable.
Do I have to repay the whole Lifetime Mortgage when I move?
Not necessarily. Some plans may be portable, although repayment may be required in certain circumstances.
What if I downsize?
Moving to a lower-value property may mean part of the loan needs to be repaid.
Can every property accept a transferred Lifetime Mortgage?
No. The new property must meet the lender’s criteria.
Should I mention future moving plans before taking equity release?
Yes. Future housing plans are relevant to the advice process.
Disclaimer:
Equity release includes Lifetime Mortgages and Home Reversion Schemes. We can advise and arrange Lifetime Mortgages and will refer to an approved specialist for Home Reversion schemes.
This is a Lifetime Mortgage. These are only applicable to those 55 and over, and it could affect eligibility to state means-tested benefits and the inheritance you may leave. To understand the features and risks, ask for a personalised illustration.
There may be a fee for mortgage advice. The precise amount will depend upon your circumstances and will be agreed with you before proceeding, but we estimate it will be £1,500 payable at completion for equity release products.
