No ERCs When Moving Home: Moving home can expose a borrower to an unexpected mortgage cost.
A client may have enough equity, acceptable affordability and a suitable property. However, redeeming their existing fixed-rate mortgage could still trigger an early repayment charge.
Some mortgage products take a different approach. April Mortgages permits borrowers to sell their home and redeem their mortgage without an ERC when they move. A new mortgage application would then be required for the next property.
This creates an important distinction for advisers. The existing mortgage is not ported. Instead, it can be repaid without the moving-home penalty that may apply to many fixed-rate products.
At a Glance
- April Mortgages does not require an ERC when a borrower sells and moves home.
- The existing mortgage is redeemed rather than transferred to the new property.
- A new mortgage application is subject to current affordability, credit and property criteria.
- No ERC does not mean that every moving or mortgage cost disappears.
- Advisers should compare the full cost and suitability of the available routes.
What Is an Early Repayment Charge?
An early repayment charge is a contractual charge that may apply when a borrower repays all or part of a mortgage before a stated date or event.
The Financial Conduct Authority defines an ERC as a charge made when a mortgage is repaid fully or partly before the point specified within the mortgage contract.
ERCs are commonly associated with fixed or discounted mortgage periods. The amount and calculation method depend on the lender and product.
For clients moving home, the charge can affect the amount of equity available for their next purchase.
How Does Moving Without an ERC Work?
With an eligible April Mortgages product, the borrower can sell their home and repay the outstanding mortgage without an early repayment charge.
The process is different from porting a mortgage.
Porting normally involves applying to move an existing mortgage product to another property. The lender still reassesses the borrower and the new property.
April Mortgages does not port the existing loan. Once the property is sold, the mortgage can be redeemed. The client can then apply for a new mortgage with April or another lender.
The new application is assessed using the lender’s criteria and the client’s circumstances at that time. Approval is not automatic.
What Should Advisers Check?
The absence of a moving-home ERC should form part of the advice assessment. It should not replace it.
Advisers should consider:
- Whether the client is selling rather than refinancing the existing property
- Whether the redemption meets the lender’s conditions
- The client’s expected moving timescale
- Current and future borrowing requirements
- Changes to income, expenditure or credit history
- The loan-to-value required for the new property
- The suitability and construction of the property being purchased
- Legal, valuation, product and application costs
- Whether another lender offers a more suitable overall outcome
A no-ERC feature can remove one cost. However, suitability depends on the complete mortgage structure.
Why Does This Feature Matter?
Long-term fixed rates can provide payment certainty. Yet certainty may become restrictive when a borrower’s circumstances change.
Employment, family requirements, health, separation or location can alter a housing plan. The practical value of a mortgage therefore depends on what happens when the original plan no longer applies.
April Mortgages combines longer-term fixed periods with no ERC when a borrower moves home. Its current product information also states that borrowers may redeem using their own funds without an ERC. Refinancing during the fixed period may still trigger charges.
For advisers, that distinction should be clearly recorded and explained.
What Does Current Market Data Show?
Moving-home flexibility remains relevant within a sizeable mortgage market.
UK Finance recorded 74,540 home-mover loans in England during the final quarter of 2025. The average home-mover loan was £294,055, with an average loan-to-value of 66.4%.
Bank of England data later recorded 56,200 mortgage approvals for house purchase in May 2026.
These figures do not show how many borrowers paid ERCs. However, they demonstrate the number of households whose mortgage terms, equity and future flexibility may need to be considered when moving.
No ERC Versus Mortgage Porting
Neither route is automatically better.
Porting may allow a borrower to retain an existing rate. However, the lender must approve the application and the new property. Extra borrowing may also be placed on a separate product.
Redeeming without an ERC allows the existing mortgage to end when the property is sold. The borrower can then compare new options based on their current needs.
Advisers assessing both routes can also review our guide on whether to remortgage or port.
Adviser Checklist
Before recommending a moving-home mortgage route, confirm:
- The exact ERC terms within the current mortgage offer
- Whether the product is portable
- Whether an ERC exemption applies when selling
- The lender’s definition of moving home
- Whether simultaneous sale and purchase dates are required
- Any deadline for completing the next mortgage
- The total cost of redeeming, porting or replacing the mortgage
- Whether the client still meets current lending criteria
Clear records should explain why the chosen route is suitable, not simply why one charge was avoided.
Supporting Clients Who Are Moving Home
Connect Network advisers can access lender information, placement support and technical guidance when assessing less familiar product features.
Where a consumer needs help with their next property purchase, they can also search the Connect Group’s moving-home mortgage adviser directory.
Advisers without direct April Mortgages access can learn more about April Mortgages broker referrals through Connect.
The value of flexibility is not that every future decision becomes predictable. It is that one contractual condition is less likely to prevent the client from responding when their circumstances change.
Frequently Asked Questions
Does April Mortgages charge an ERC when a client moves home?
April Mortgages states that borrowers can sell their home and redeem the mortgage without an ERC. The terms of the individual mortgage offer should always be checked.
Can the existing April mortgage be ported?
No. The existing mortgage is redeemed. The borrower must apply for a new mortgage for the next property.
Is the new mortgage automatically approved?
No. The new application remains subject to affordability, credit, property and lender criteria.
Does no ERC mean the move has no mortgage costs?
No. Legal fees, valuation charges, product fees and other transaction costs may still apply.
Can the client remortgage without an ERC?
Not necessarily. April Mortgages states that refinancing during the fixed-rate period can attract ERCs. Advisers should check the applicable product terms.