Lifetime Mortgage Myth: You Can’t Move Home
One of the more persistent myths about lifetime mortgages is:
“Once you take one out, you’re stuck in your home forever.”
It’s an understandable assumption—after all, the term lifetime mortgage suggests a long-term commitment. However, the reality is quite different.
Let’s set the record straight.
Can You Move Home with a Lifetime Mortgage?
Yes, you can.
Most lifetime mortgages are portable, meaning you can move home and transfer the mortgage to your new property—provided the new home meets your lender’s criteria.
In practice, this means:
- You can sell your current home
- Use the sale proceeds to repay your existing lifetime mortgage
- Take the same mortgage to your new home (if eligible)
- Or arrange a new lifetime mortgage if your circumstances or property plans change
This flexibility can be especially helpful if your future plans include downsizing, relocating closer to family, or moving to a home that’s easier to maintain.
Why Do People Think You Can’t Move?
This myth usually comes from two places:
- Confusion with older equity release products
In the past, some equity release plans did tie you to your existing property. Modern products regulated under today’s rules are very different.
Misunderstanding lender criteria
While you can move, your new property still needs to meet the lender’s requirements. For example, certain types of properties—like retirement flats, park homes, or those in poor condition—may not be acceptable to all lenders.
What If You Want to Downsize?
If you downsize to a lower-value property, you may need to repay part of your lifetime mortgage to keep it within lending limits. Many modern plans offer a downsizing protection feature, which can allow you to repay the loan without early repayment charges (ERCs) if you move after a certain period.
What Happens If Your New Home Doesn’t Qualify?
If your new property doesn’t meet the lender’s criteria, you may need to repay your lifetime mortgage in full when you sell. Whether ERCs apply will depend on your plan’s terms.
This is why checking portability and ERC terms before you commit is crucial—especially if moving is part of your long-term plans.
Things to Consider Before Moving
If you have a lifetime mortgage and think you might move in the future, it’s worth considering:
- Portability: Is your plan portable, and under what conditions?
- Downsizing Protection: Does your plan allow ERC-free repayment if you move to a lower-value property?
Future Property Plans: Will the type of property you want to buy meet lender criteria?
Final Thoughts
So, let’s put this myth to bed:
You can move home with a lifetime mortgage.
The key is to choose the right plan upfront and make sure it supports your long-term plans.
With good advice, you can keep your options open, enjoy the benefits of a lifetime mortgage now, and still have the flexibility to move in the future.
Risk Warning: This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.
Regulatory Disclosure: Symmonds de Lacey is a trading name of Easy Street Financial Services Limited which is authorised and regulated by the Financial Conduct Authority. Easy Street Financial Services Limited is a company registered in England and Wales with company number 6430453. The registered office address is Basepoint, 377-399 London Road, Camberley, Surrey, GU15 3HL.
Information correct at time of writing – August 2025.
