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By Pete Mugleston | Mortgage Advisor

Pete has been a mortgage advisor for over 10 years, and is regularly cited in both trade and national press.

Updated: 4th December 2020*

Fixed rate mortgages can provide a level of predictability for homeowners who benefit from a guaranteed rate. They are often a cheaper alternative to other mortgage products too.

The problem many homeowners face is whether they can move or sell their house with a fixed rate mortgage.

Many people worry about the financial consequences of breaking their contract early, while others want to keep their mortgage and simply transfer the rate and terms across (known as porting a mortgage) to their new property.

To find out whether selling a house with a fixed rate mortgage is possible, read our guide below.

Different circumstances could affect your ability to sell your house while in a fixed rate mortgage, so chat to an advisor by calling 0808 189 2301 or make an enquiry to discuss what your options may be.

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Can I sell my house if I have a fixed-rate mortgage?

Fixed-term mortgage agreements can offer competitive rates for an agreed period of time. This can range between 2-5 years (sometimes longer) and, for many homeowners, this provides the certainty they require and allows them to budget effectively during this period. They know their payments won’t increase, even if the base rate does.

Although fixed-rate mortgages can be beneficial, like most mortgage agreements, they can have restrictive terms. This is why when people ask us things like “Can I sell my house if I have a fixed-rate mortgage?” we explain that although it may be possible, contractual obligations can make it difficult.

However, selling your house whilst in a fixed-rate mortgage is a fairly common thing. Despite it being common, some homeowners remain unaware that if they want to sell their property, the proceeds from the sale have to be used to pay the loan off. Therefore ending the mortgage agreement.

When you enter a mortgage agreement at the beginning of your contract, you agree to certain terms and conditions, such as the length of your mortgage term. Often this is for a period of 25 years, although this can vary.

By selling your house and leaving your contract early, you might be breaching the terms of your agreement and f many lenders can charge exit fees or early repayment charges for this, which can be costly.

Associated fees when selling a house whilst in a fixed rate mortgage

If you were to leave your fixed rate mortgage before the fixed rate period is complete, your lender would lose out on interest, so to regain some profit back, they charge a fee to essentially penalise you.

The amount that a lender could charge you for an early repayment fee or exit fee can vary, although the charge is usually a percentage of the outstanding mortgage debt.

Therefore, the closer you are to the end of your fixed rate period, the lower the fee may be. This isn’t always the case and it’s important to check with your lender or seek the advice of a mortgage broker before selling your house whilst in a fixed rate mortgage.

Alternatively, speak to an expert advisor who can check your current mortgage agreement to establish how much you will be charged for selling your house and therefore leaving a fixed rate mortgage early.

Call us on 0808 189 2301 and let us introduce you to one of the whole of market experts we work with every day, or make an online enquiry.

Can you move house when you have a fixed mortgage?

Lots of people ask us things like “If I have a fixed rate mortgage can I move house?” and the answer is potentially yes.

Read on to find out how this is possible…

Can I move my fixed rate mortgage to another property?

Yes. Some mortgage lenders allow their customers to transfer their mortgage. This is sometimes referred to as ‘porting a mortgage’.

Upon applying to port your fixed rate mortgage, you may be subject to mortgage affordability checks as, essentially, although the rates and terms will be the same, you are applying for a new loan.

Your lender may ask questions about your debt to income ratio, credit history, number of dependants and their age.

The state of the new property that you wish to move to with your fixed-rate mortgage will also be considered as some property types such as high rise or listed buildings can be more difficult to mortgage.

Moving house with a fixed rate mortgage can be overwhelming but with the help of a mortgage advisor, the process can be a lot smoother. Using their expertise and knowledge of your circumstances, they can advise you on whether moving home whilst in a fixed rate mortgage is a good idea.

A mortgage specialist can also calculate how much it will cost you to move, including exit fees, solicitor fees and moving costs. Selling your property to move is a huge decision that can impact your finances greatly, so always seek the advice of a professional who can highlight any unfavorable terms in your new contract.

Ask a mortgage broker about selling your home with a fixed mortgage

If you’re still asking yourself, “Can I move house if I have a fixed rate mortgage?” or “Can I sell my house during a fixed rate mortgage?” then feel free to ask one of the advisors we work with for help.

Call Online Mortgage Advisor today on 0808 189 2301 or make an online enquiry.

Updated: 4th December 2020
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FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.