iTechGuides is reader-supported. When you buy through links on our site, we may earn an affiliate commission. As an Amazon Associate I earn from qualifying purchases. Learn more
Selling a home with a lifetime mortgage usually means repaying the outstanding loan and accrued interest from the sale proceeds. Moving to another property may be possible if the provider approves it as security. A permanent move into long-term care can also bring repayment due, but the result depends on the plan and whether a joint borrower or eligible partner has the right to remain in the home. Check your contract and get the provider’s requirements in writing before you commit to a sale or move.
What happens if you sell the home securing a lifetime mortgage?
A lifetime mortgage is a loan secured against your home. When the home is sold and the plan ends, the amount still owed is normally repaid from the sale proceeds. Depending on the plan, interest may have accumulated over time or you may have made interest payments, so the redemption balance can differ from the amount originally borrowed.
Ask the provider for a current redemption statement before agreeing a sale. It should help you establish the amount to repay and identify any fees or early repayment charge that may apply. Confirm how long the figure is valid and the steps and deadlines for completing repayment; the balance can change as interest accrues.
Free tools Windows power users keep installed
One-click scans. No signup required.
If the sale proceeds are not enough
Some plans include a no-negative-equity guarantee. If yours does, the borrower or estate will not owe a shortfall after the property is sold and sale costs are taken into account, even if the proceeds do not clear the balance. Check your plan documents to confirm that this safeguard applies; do not assume every plan has it.
#1 Best Overall
Can you move and keep the lifetime mortgage?
Possibly. The loan does not automatically follow you to a new home: the provider must accept the replacement property as continuing security. Equity Release Council product standards provide for a right to move only where the provider accepts the new property. The property and the details of the move therefore matter, and approval is not guaranteed for every home.
Contact the provider early and obtain approval before exchanging contracts on the new property. Ask whether the move is permitted, what criteria the replacement home must meet, and whether the balance, terms, or costs would change. Do not rely on a verbal assumption that you can transfer the plan.
What if you are downsizing?
Downsizing does not by itself guarantee a penalty-free exit. Some lifetime mortgages include downsizing protection: if you meet the plan’s conditions and the provider will not accept the smaller replacement property, you may be able to repay without an early repayment charge. Availability, qualifying periods, and other conditions depend on the individual plan.
If you are selling without moving the loan to an accepted property, ask whether downsizing protection applies to your circumstances. Otherwise, an early repayment charge may be payable. Request a written calculation that shows the redemption balance, fees, and any charge before deciding whether to proceed.
What happens if you move permanently into care?
A permanent move into long-term care can bring a lifetime mortgage to its repayment point. MoneyHelper describes repayment when a borrower moves permanently into a care home. However, a home may not have to be sold immediately in every case: the Equity Release Council’s guidance recognises that a spouse or partner who is entitled to remain in the home can affect when repayment is due. The contract determines who has that right and what event triggers repayment.
Ask the provider what it treats as a permanent care move, what evidence it requires, and how it will handle any joint borrower or eligible partner who remains at home. The guidance cited here does not establish a universal rule for temporary absences, such as a hospital stay or respite care; confirm how your plan treats those situations rather than assuming they count as permanent relocation.
Care-related early repayment charge waiver
Equity Release Council standards effective 6 May 2025 describe a waiver of an early repayment charge for a permanent move into long-term care when the provider receives the required medical practitioner’s certificate and the borrower has complied with the loan terms. This is conditional: check whether the standard and waiver apply to your plan, what certificate is acceptable, and whether any other repayment costs remain.
The Tool Desk
Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Check whether you have a lifetime mortgage or home reversion plan
“Equity release” can refer to different arrangements, and the sale or move rules are not interchangeable.
| Plan type | What it is | What to check when selling or moving |
|---|---|---|
| Lifetime mortgage | A loan secured against the home; interest may roll up or be paid during the plan. | Redemption balance, sale and transfer requirements, any early repayment charge, and whether a no-negative-equity guarantee or downsizing protection applies. |
| Home reversion | You sell all or part of the home, usually for less than market value, and retain a lifetime tenancy under the contract. It is not simply a secured loan. | The reversion contract’s terms for ending the tenancy, selling, or moving. Do not assume a share sold to the provider can be transferred to a replacement home. |
MoneyHelper explains that home reversion has different mechanics from a lifetime mortgage. Use the documents for your specific plan and ask the provider how a sale, move, or care relocation affects your tenancy and the share already sold.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What to ask the provider before making a decision
Contact the provider as soon as a sale, property move, or possible care move is being considered. If someone else is acting for you, they may need authority to discuss the plan. Request the answers in writing so you can coordinate the property transaction or care arrangements with the lender’s requirements.
- What is the current redemption figure, and how long is it valid?
- What fees, sale costs, or early repayment charges could apply?
- Can the loan continue against the proposed replacement property, and what approval is needed before contracts are exchanged?
- Does the plan include downsizing protection? If so, what qualifying period and conditions apply?
- What counts as a permanent move into care, and what medical evidence must be supplied?
- Can a joint borrower, spouse, or partner remain in the home, and what occupancy rights does the contract recognise?
- What deadlines and repayment steps apply if the property must be sold?
MoneyHelper recommends considering alternatives and speaking to an adviser. A later-life mortgage adviser can help you understand the contract and compare the consequences of repaying, moving the loan, or relying on a plan feature.
Outdated Drivers Are Slowing You Down
One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchPC Slower Than It Used to Be?
A free scan shows the junk files, broken settings and background clutter dragging Windows down - then fixes them in one click.Free scan · Windows 10 & 11Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
