Transferring and amending mortgages: switching, moving, transfer of equity, redemption and overpayments

Most mortgages change several times before they end. MRT2 Learning Outcome 2 covers the main post-completion changes:

• moving the loan to a new lender;
• moving home;
• converting from one product or repayment type to another;
• adding or removing a borrower;
• redeeming the loan early or at the end of the term;
• making overpayments;
• porting a product.

For each change you need two things: the practical effect, and the rule on whether a full affordability check and new disclosure are required. This note uses the FCA Handbook rules in force on 30 October 2026, as tested in CeMAP®.

The affordability question first

Every change raises the same first question: does the lender have to re-run a full affordability assessment under MCOB 11.6.2R?

No full check is needed (MCOB 11.6.3R) for a replacement contract or a variation with the same lender (or its transferee) when both of these apply:

• there is no additional borrowing, apart from financing a product or arrangement fee;
• there is no change likely to be material to affordability.

This covers a new contract on the same property or on a different one.

Changes presumed material (MCOB 11.6.4E):

• extending the term into retirement;
• switching between repayment and interest-only;
• adding or removing a borrower.

Changes carved out (MCOB 11.6.3R(3)). The following do not need a full assessment:

• reducing capital, including a move towards interest-only, for up to six months;
• reversing a term extension within six months;
• forbearance;
• since 22 July 2025, term reductions.

Change	Full MCOB 11.6 affordability?
Product switch with the same lender, no extra borrowing	No (MCOB 11.6.3R)
Remortgage to a new lender, no extra borrowing, more affordable	Modified assessment possible (MCOB 11.9)
Any change that adds borrowing	Yes
Adding or removing a borrower	Presumed material, so yes in practice (MCOB 11.6.4E)
Interest-only to repayment, or repayment to interest-only	Presumed material (MCOB 11.6.4E)
Term reduction	No (since 22 July 2025)