Mythbuster: "I won't be able to move home"

Can I move house with equity release?

Yes, you can move house with equity release, depending on your plan. Many equity release plans allow you to move home in the future, as long as the new property meets your provider’s criteria at the time. While some conditions may apply, it’s a flexible option for many homeowners. At Key, we’ll guide you through your choices and recommend the most suitable solution for your needs.
 

Portable plans

A common misconception about equity release is that you won’t be able to move home once you’ve unlocked your tax-free cash from it.

Our customers often take out equity release so they can stay in their family home rather than move to a smaller one. Then the loan, plus compound interest, is typically repaid through the sale of the property when the last remaining applicant passes away or moves into long-term care.

However, we never know what’s around the corner. You may find in the future that you need to move to a more accessible home, or a less expensive one, or just want to move to a new area. That’s why plans that meet the Equity Release Council standards will guarantee you the right to move your plan to a new property.

This means you have the freedom to sell your house and transfer the debt to your new one, providing the new property meets the providers criteria at that time.

If the new property is worth less than your old one, then you may still be able to move and take your plan with you.

You may be asked to repay part of the amount outstanding on the lifetime mortgage if the maximum loan available on your new property is lower than the outstanding balance of your existing lifetime mortgage.
 

Downsizing protection

If you have a plan with downsizing protection, you can pay off the outstanding lifetime mortgage before the end of its term without paying an early repayment charge.

So if, for whatever reason, you want or need to move into another home that isn't acceptable to the lender, typically after five years of taking out a lifetime mortgage, you can pay the loan back early without incurring an early repayment charge. Without downsizing protection you may still be able to move, however, it's important to note you may incur an early repayment charge if you choose to repay your loan early.

Can you move house if you have equity release - FAQs

You may have questions about moving home when you've released equity - and you're not alone. In this section, we answer some of the most common queries about what happens to your equity release plan if you decide to move house.