Do I Have Have To Pay Off A Secured Loan Before Moving Into A New House?
Yes, in most cases you must repay a secured loan in full before you can sell or move from your current property. Because the loan is tied directly to your home, the lender holds a legal charge on it, which must be cleared before the ownership can be transferred to a new buyer.
Must I Settle My Secured Loan Before Selling My House?
Yes, you almost always have to settle your secured loan before the sale completes. Since the loan is secured against your home, your lender has the legal right to receive repayment before the property can change hands.
Your solicitor will handle this process by calculating the final settlement amount (also called a redemption figure) and ensuring the lender is paid directly from the proceeds of your house sale. Only once this is complete will any remaining funds be transferred to you.
What Happens to My Secured Loan When I Sell My Property?
When you sell your house, your secured loan becomes payable in full immediately. Your solicitor requests a redemption statement from your lender, which sets out exactly how much you owe, including any interest and fees up to your completion date.
On the day of the sale, the solicitor pays off the lender directly from the buyer’s funds, making sure the legal charge is released. Only then can the transaction proceed, and you’ll receive the balance of the money left over.
Can I Transfer My Secured Loan to a New Property?
No, in most cases you cannot transfer a secured loan to a new property. Each secured loan is tied to a specific house, so moving usually triggers the requirement for full repayment.
A small number of specialist lenders may allow "porting" (moving the loan to your next home), but this is rare and comes with strict conditions. More commonly, if you need extra borrowing for your new property, you would have to apply for a completely new secured loan with fresh checks on affordability and creditworthiness.
How Do I Get a Settlement Figure for My Secured Loan?
You’ll need a redemption statement from your lender to know exactly how much to repay. This will include:
- Contacting your lender – Request the statement in writing or over the phone.
- Providing your expected completion date – So they can calculate interest accurately.
- Allowing time for processing – It can take 5–10 working days.
- Checking expiry – Statements usually remain valid for 30 days.
- Passing the figure to your solicitor – They’ll arrange payment on completion day.
Can I Get a New Secured Loan on My Next Property?
Yes, you can apply for a new secured loan once you’ve moved, provided you meet the lender’s criteria. This will be treated as a brand-new application with fresh affordability checks, a credit assessment, and a new legal charge registered against your new property. The terms, rates, and borrowing limits may differ depending on your circumstances and the lender’s requirements.
What Are My Options If I Want to Keep Borrowing When Moving House?
If you still need access to extra funds after moving, there are several borrowing routes available:
Option | Pros | Cons |
New secured loan | Larger borrowing amounts, lower rates | Full application, legal charge required |
Unsecured loan | No property at risk | Higher rates, smaller limits |
Remortgage with cash out | Competitive mortgage rates | Extends or changes main mortgage |
Bridging finance | Covers short-term gaps quickly | Very high interest and fees |
Will Early Repayment Charges Apply When I Move House?
Yes, early repayment charges (ERCs) often apply if you repay your secured loan early because of a house move. The exact cost depends on your loan agreement — some lenders may waive these charges if repayment is triggered by a property sale, but this is not guaranteed. Always check your loan contract or ask your lender directly to avoid surprises.
How Long Before Completion Should I Arrange Secured Loan Payoff?
You should start the payoff process at least 2–3 weeks before your completion date. This gives enough time to:
- Obtain a redemption statement from your lender
- Allow your solicitor to coordinate with them
- Handle any complications or disputes that arise
- Ensure final interest calculations are correct
Leaving it too late could cause delays in completion, frustrating both you and your buyer.