Moving house with a loan secured on your property

Secured loans are a funding option that uses an asset as security. The most common asset used to secure against these loans are properties. However, some lenders may be willing to accept other assets.

If your loan is secured against your property, it means that if you default on your monthly repayments, then your lender may repossess the asset.

Therefore, having a secured loan may put your property at risk, and so it is important for individuals to assess the different borrowing options available to them carefully.

Furthermore, as the property is linked to the loan, it can pose challenges if individuals are wanting to move house.

Guide into moving house with a loan secured on your property

Can you move house with a secured loan?

Generally, most individuals will be required to pay off their secured loan prior to moving to a new property.

In some circumstances however, lenders may be willing to transfer the loan over to the new property. This is dependent on the level of equity available in the new house and other affordability factors.

It is therefore important that individuals contact their lenders and seek advice if they are wanting to transfer their secured loan over to a new property, in order to determine if it is achievable.

How to pay off your secured loan before moving?

If you are unable to transfer the loan over to a new property, there are a variety of different methods that can be utilized to pay off the secured loan.

Firstly, the proceeds received from the sale of your property could help to pay off the secured loan, depending on the amount of money that was originally borrowed.

The idea is that when putting their property on the market, individuals aim for a sale price that will cover the remaining cost of their mortgage and other loans secured on the property.

However,  individuals must carefully calculate this, as challenges may occur if the money received from the sale does not cover all the debts associated with moving to a new property.

Another method that could be used is to pay off the secured loan in full prior to moving house.

This will only be achievable if individuals have the necessary funds to pay off their secured debts, meaning it may not be a viable method for everyone.

Some individuals may however have savings that they can utilize to pay off their secured loans or may be able to acquire extra income sources that could help.

An unsecured loan could also be used to pay the debt off. However, this depends on the amount of debt that remains.

With an unsecured loan, an asset is not used as security. Individuals could therefore take out one of these loans to pay their secured debt off and move property with their unsecured debt.


These different methods may help individuals in situations where they need to pay their secured loans off in order to move to a new property.

Taking out any additional loans or using savings can bring financial challenges if they are not properly implemented.

It is therefore particularly important for individuals to carefully consider their borrowing options and personal situation prior to making any plans.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.