Can You Move House After Equity Release?
If your lender is a member of the Equity Release Council (most are), you have a guaranteed right to move your plan to a new property, provided it meets the lender's criteria at the time. Moving to a similar or higher-value home is usually straightforward. Moving to a lower-value home is where it gets more complicated — and where "downsizing protection" becomes important.
Taking out equity release doesn't mean you're stuck in your current home forever. Most plans are portable, meaning you can move house and take the loan with you — but the details matter, especially if you're downsizing to a lower-value property. This guide explains exactly how it works.
The Basic Right to Move (Porting)
Under Equity Release Council standards, you're guaranteed the right to move your plan to a new property — known as "porting." This means you can sell your current home and transfer the outstanding loan to your new one, rather than being forced to repay it in full just because you're moving.
The key condition: your new property has to meet your lender's criteria at the time of the move. This typically covers property type, construction, and minimum value — most standard homes qualify without issue.
Moving to a Similar or Higher-Value Property
This is the simplest scenario. If your new home is worth the same as or more than your current one, your existing loan typically transfers across on the same terms with no repayment required. Some lenders will even consider letting you increase the loan amount if you're moving somewhere more expensive.
Moving to a Lower-Value Property (Downsizing)
This is where it gets more nuanced. If your new home is worth less than your current one, the maximum loan available against it may be lower than what you currently owe — meaning you could be required to make a partial repayment.
This is where downsizing protection matters. Many modern lifetime mortgages include a downsizing protection feature, which waives any early repayment charge specifically when you're moving to a smaller home. Without this feature, that same partial repayment could trigger a standard early repayment charge, which can be significant.
Not all plans include downsizing protection, and terms vary between lenders — some only apply it after a minimum number of years. Checking your specific plan is essential before assuming a future downsize will be penalty-free.
What If the New Property Doesn't Qualify?
If your chosen new property doesn't meet your lender's criteria at all, porting may not be possible. In that case, you'd typically need to repay the outstanding loan in full from the sale proceeds, which could mean:
A standard early repayment charge, if you're outside any protected circumstances
Taking out a brand new equity release plan on the new property separately, potentially at a different interest rate
Simply not proceeding with equity release again if you no longer need or want it
This is uncommon for typical residential moves, but worth checking with your provider before committing to a purchase if the new property is unusual in any way.
Costs to Expect When Moving
Even when porting goes smoothly, moving with an existing equity release plan isn't entirely cost-free. Budget for:
A new property valuation, required by your lender to confirm the new home meets criteria
Potential arrangement fees for setting up the ported loan on the new property
All the normal costs of moving home — solicitor fees, stamp duty, surveys, and removals
None of this is usually as costly as a full early repayment charge, but it's worth factoring into your decision alongside the wider comparison between equity release and downsizing.
Related Reading
Equity Release Explained: How It Works, What It Costs
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