It's a question we hear all the time:
"Can I move house if I'm still tied into my fixed-rate mortgage?"
The simple answer is… yes, you usually can.
Many people assume they have to wait until their fixed-rate mortgage ends before moving home, but that's often not the case.
There may be extra things to consider, such as Early Repayment Charges or whether you can port your mortgage, but being on a fixed-rate deal certainly doesn't stop you from moving.
Let's take a closer look at how it all works.
What Is a Fixed-Rate Mortgage?
A fixed-rate mortgage is simply a mortgage where your interest rate stays the same for an agreed period.
This is often:
- Two years
- Three years
- Five years
- Occasionally longer
During that time, your monthly mortgage payments remain predictable, which many homeowners appreciate when budgeting.
The trade-off is that if you leave the mortgage early, you may have to pay a fee.
What Happens if I Move House During My Fixed Rate?
When you move house, your existing mortgage is usually repaid using the money from the sale of your current property.
If you're still within your fixed-rate period, your lender may charge what's known as an Early Repayment Charge (ERC).
This is a fee for ending your mortgage before the agreed fixed period has finished.
The amount varies depending on your lender and how much time remains on your deal.
It's one of the first things a mortgage advisor will check when you're considering moving.
What Is Mortgage Porting?
This is where many homeowners get some good news.
Many fixed-rate mortgages are portable.
Porting simply means you may be able to transfer your existing mortgage product from your current property to your new one.
You're not physically moving the mortgage itself. Instead, you're applying to take your current mortgage deal with you to another property, subject to your lender approving the application.
If your application is accepted, you may be able to avoid paying an Early Repayment Charge.
Is Mortgage Porting Guaranteed?
No. This is an important point.
Although many mortgages are portable, you still need to apply to the lender.
They'll reassess your circumstances, just as they would for a new mortgage application.
That means they'll usually look at things like:
- Your income
- Your employment
- Your credit history
- The new property
- Your affordability
If your circumstances have changed significantly since taking out your original mortgage, the lender may reach a different decision.
What Happens if My New Home Costs More?
Many people move because they need a larger home.
If your new property is more expensive, you may need to borrow additional money.
This is often called additional borrowing or a top-up mortgage.
In many cases:
- Your existing mortgage continues on its current fixed rate.
- The extra borrowing is arranged on a new mortgage product.
This means you could end up with two parts to your mortgage, each with different interest rates and end dates.
It sounds complicated, but it's actually quite common and something a mortgage advisor can help you navigate.
What If My New Home Costs Less?
If you're downsizing, your mortgage requirements may reduce.
In some situations, reducing your mortgage balance significantly could still trigger an Early Repayment Charge on the amount you're paying off.
Again, every lender has different rules, so it's always worth checking before making decisions.
Should I Stay or Pay the Early Repayment Charge?
Sometimes paying the Early Repayment Charge is actually the better option.
For example:
- Your existing mortgage may no longer be competitive.
- Another lender could offer a significantly better deal.
- Your circumstances may have changed.
- A different mortgage product may save you more money over time.
It's important to compare the cost of the Early Repayment Charge against any potential savings from switching mortgages.
The cheapest option isn't always the most obvious one.
Can I Get a New Mortgage Instead?
Absolutely. You're not always tied to your current lender.
Some homeowners choose to repay their existing mortgage, pay any applicable Early Repayment Charge and arrange an entirely new mortgage with another lender.
Whether this makes financial sense depends on:
- The size of the repayment charge
- Current mortgage interest rates
- The amount you're borrowing
- Your long-term plans
This is where expert mortgage advice can really add value.
How Can a Mortgage Advisor Help?
Moving home often involves several decisions happening at the same time.
Questions like:
- Should I port my mortgage?
- Should I switch lenders?
- Will I need additional borrowing?
- How much will moving cost?
- Will I pay Early Repayment Charges?
A mortgage advisor can compare your options and explain the financial impact of each one before you commit.
That way, you can move with confidence rather than guesswork.
Final Thoughts
Being tied into a fixed-rate mortgage doesn't mean you have to put your moving plans on hold.
Many homeowners successfully move while still within their fixed-rate period.
The key is understanding your options.
You may be able to port your mortgage, borrow additional funds if you're upsizing or even switch to a completely new mortgage if it works out better financially.
Every lender is different, and every homeowner's circumstances are unique.
At HLC Mortgages, we'll take the time to understand your plans, explain your options in plain English and help you find the most suitable solution for your move.
Whether you're upsizing, downsizing or relocating, we're here to make the mortgage side of moving home as straightforward as possible. Contact us today!
Your home may be repossessed if you do not keep up repayments on your mortgage.