A common concern for people considering equity release is whether it ties them to their current home permanently. The reassuring answer is that in most cases it does not. Most modern lifetime mortgages are portable, which means you can take the plan with you if you decide to move - subject to certain conditions.

Can I move home if I have a lifetime mortgage?

Yes, in most cases you can. The majority of lifetime mortgages offered by lenders regulated by the Equity Release Council include a portability feature, which allows you to transfer the plan to a new property when you move. This is sometimes called porting.

The key requirement is that the new property meets the lender's criteria. Not every property will be accepted, and lenders will assess the new home in the same way they assessed your current one.

What types of property can I move to?

Lenders will typically accept standard residential properties - houses and flats of standard construction in good condition. Properties that may be more difficult to port to include:

Leasehold flats with a short remaining lease. Most lenders require a minimum lease term, typically 75 years or more remaining at the end of the mortgage term.

Non-standard construction properties such as timber frame, thatched, or prefabricated homes.

Properties above commercial premises.

Properties in certain retirement developments, depending on the terms of the development.

Very high value or very low value properties may fall outside some lenders' acceptable ranges.

If you have a particular type of property in mind, your adviser can check lender criteria before you proceed.

What happens to the loan when I move?

If the new property is worth the same or more than your current home, the process is usually straightforward. The loan transfers to the new property and the plan continues on the same terms.

If you are moving to a less expensive property, the lender will check whether the new property provides sufficient security for the outstanding loan. If the loan balance is too high relative to the value of the new home, you may need to repay part of the loan at the point of moving. Whether early repayment charges apply in this situation depends on your specific plan - this is worth checking before you commit to a move.

Some lenders will also allow you to release additional funds at the point of porting if the new property supports it and you meet the eligibility criteria at that time.

Does moving home affect the terms of my plan?

In most cases the core terms of your plan remain the same when you port it. The interest rate, any inheritance protection, and the no negative equity guarantee all carry across to the new property.

However, if the lender needs to reassess the plan - for example because the new property has a significantly different value - there may be some adjustments to what is available. Your adviser will talk you through the specific implications for your plan before you move.

What if I want to move into a care home?

This is a different situation. Moving permanently into a care home or long-term residential care is typically a trigger event that brings the lifetime mortgage to an end. The property would normally be sold, and the loan repaid from the proceeds. Any remaining equity passes to your estate.

If only one person in a joint plan moves into care while the other remains at home, the plan continues as normal until the second person also leaves the property permanently.

What if my lender does not allow porting?

While portability is a standard feature of most Equity Release Council-compliant plans, it is always worth confirming this before you take out a plan - particularly if you think there is any chance you may want to move in the future. Your adviser will check the portability terms as part of the advice process and flag any restrictions.

How Aspect Mortgages can help

Aspect Mortgages is a member of the Equity Release Council, and Richard, Rachel, and Neil are each individually registered members and qualified to advise on equity release. Richard holds the Advanced Certificate in Mortgage Advice and Practice (Adv CeMAP) and the Certificate in Regulated Equity Release (CeRER). Rachel holds the Certificate in Mortgage Advice and Practice (CeMAP) and CeRER. Neil holds the Certificate for Financial Advisers (CertPFS) and the Certificate in Mortgage Advice (CertCII(MP)).

If you are thinking about equity release and want to understand how it would work if you moved home in the future, call us on 01257 812345 or visit our equity release page. We offer appointments in your own home, by video call, or at our Chorley office - whichever suits you best.