There are so many reasons why it may be time to move home. You may need to upgrade to a larger property to accommodate a growing family. You may need to downsize. You may need to relocate to a new city, or perhaps just to a new neighbourhood.

When you move property you may think that you need to settle your one mortgage, and then get a new agreement, but this isn’t typically the case. That’s why you may be asking yourself, “Can I move house and keep the same mortgage?”

This guide will cover when, if, and how to move house with a mortgage. Your specific options, of course, will depend on what your specific mortgage agreement.

Can you move your mortgage to another house?

So, can you move a mortgage to another house? Yes, you can move or “port” mortgages to another house. Most today, in fact, though that doesn’t mean yours can necessarily be moved to your next property. Not only that, but there are also limits. So not only do you need to know how to move house mortgage to your new property, but the restrictions and limits that may mean it’s better to completely remortgage instead.

Portable mortgages help save you potentially thousands of pounds simply by avoiding exit fees. If you try to pay off your mortgage too quickly, for example, there early repayment and exit charges.

Early repayment charges

Early repayment charges depend on when you try to repay your property. They usually kick in if you try to pay off your property during while your introductory mortgage deal is ongoing (for example, the first year of a two-year fixed rate mortgage).

The amount depends on your mortgage product. The fee is typically be between 1 to 5% of your outstanding debt.

Exit fees

Exit fees happen when you either pay off a mortgage. This may be done via a house sale, or when you remortgage to a new lender. The exit fee, sometimes called a deeds release or final fee, is usually a few hundred pounds. Some may have even paid the amount upfront, so check your mortgage product.

How do mortgages work when you move house?

So how does a mortgage work when moving house exactly? Portable mortgages are typically used when the house you’re buying is either of the same value as your current one, or less. If you want to move to a more expensive property then you may need to take out a second loan, or remortgage.

Regardless of the options you choose, you will need to make a mortgage application every time you move.

Can you move house with a fixed rate mortgage?

Now, can you move house on a fixed rate mortgage? The good news is usually yes. Can you move house with a fixed mortgage, however, depends on the specific mortgage product that you have.

If you are allowed to port your existing fixed rate mortgage to a new property you’ll be able to avoid early repayment fees. This is because you aren’t cancelling your mortgage agreement, just moving it.

Still, before you jump onto the idea, know you’ll still need to re-apply for your mortgage. There may be fees involved, or your request to port your mortgage may be denied.

Can you move house with a lifetime mortgage?

Lifetime mortgages are a special loan that’s secured against your home. You use it to take equity out of your property, and don’t usually need to pay it back until you pass on (or are moved into a care facility) and your home is sold.

The good news is that you can move homes even with a lifetime or equity release mortgage, so long as it was approved of by the Equity Release Council.

The only requirement is that you have enough equity in your home to purchase a new home. If you have a home reversion plan, for example, you may not have enough equity to purchase a new property, and therefore won’t be able to move.

How to move house with a mortgage

So while the answer to “Can I move house with a mortgage?” is possibly yes, there are steps you need to take to actually check your situation. Now, before you just jump into porting over your mortgage, you first need to fully understand your options. That’s how to move your house mortgage and be rest assured you’re getting the best deal available.

Your options

You have two main options. You can either port over your existing mortgage, or you can apply for a new one. Do remember that sometimes moving just won’t be a good fit for your circumstances at all.

Reapply for your mortgage

So, how does a mortgage work when moving house? You have two main options. The first is to simply renegotiate your mortgage with your lender. To do this, you need to ask your lender to “port” your mortgage.

Unfortunately, even if your mortgage can be ported, there is no guarantee that your lender will agree. They may reject because:

• You don’t qualify for the mortgage, even if you initially qualified for your current one.
• Your lender’s criteria has changed, and you no longer qualify for the mortgage.
• You may not be able to borrow more if you wish to move to a more expensive property.

Getting a new mortgage

It’s always worthwhile to go to an independent mortgage broker and compare mortgage deals. Even with early repayment fines and exit fees, a more attractive interest rate can still help you pay less overall by switching to a new mortgage when you move to a new property. It is important that you do the maths and consider your situation, however.

How to move house when you have a mortgage

To move house when you have a mortgage, you’ll want to use these steps:

1. Check your mortgage agreement
2. Get professional advice
3. Compare costs/savings
4. Apply for a new mortgage or to port your mortgage
5. Go through the mortgage checks
6. Exchange contracts
7. Move in

For specific advice and guidance on porting your mortgage, remortgage, or getting a new mortgage, always rely on trusted and certified experts, like those at Your Certified Expert.