Moving House Loans UK – How to Cover Relocation Costs in 2025

Table of Contents

• Introduction

• What Are Moving House Loans?

• Typical Relocation Costs in the UK

• Who Offers Moving House Loans?

  • High street banks

  • Online lenders

  • Credit unions

  • Secured loan options

• Interest Rates and Loan Terms in 2025

• Eligibility and Approval Factors

• Alternatives to Moving House Loans

• Pros and Cons of Moving Loans

• Tips for Covering Relocation Costs Smartly

• FAQs

• Conclusion

What Is a Moving House Loan?

A moving house loan is simply a personal loan used to cover relocation expenses. It’s not a unique financial product, but lenders allow borrowing for purposes such as:

• Covering moving company costs

• Paying rental deposits or bridging gaps between tenancies

• Buying new furniture or appliances

• Covering legal or admin fees

How Do Moving House Loans Work?

1. Apply: Through a bank, online lender, or credit union.

2. Approval: Based on credit score, income, and affordability.

3. Funding: Money is paid into your account.

4. Repayments: Fixed monthly instalments over 1–7 years.

Example:

• £5,000 moving loan at 9.9% APR over 3 years = ~£161/month, £5,796 total repayable.

Typical Loan Amounts and Rates

• Loan amounts: £1,000–£25,000 unsecured (more if secured).

• Repayment terms: 1–7 years.

• Rates:

  • Good credit: 6%–10% APR

  • Average credit: 12%–20% APR

  • Poor credit: 20%–49% APR

Who Offers Moving House Loans in the UK?

• High Street Banks – Tesco, M&S, Nationwide, Lloyds, TSB

• Online Lenders – Zopa, Lendable, Admiral, Likely Loans

• Credit Unions – Community-based, often more affordable

• Guarantor Loans – For applicants with poor credit

Pros and Cons of Moving House Loans

Pros

• Immediate access to funds for essential relocation costs

• Fixed repayments help manage cashflow during a stressful time

• Can cover unexpected expenses (storage, legal fees, repairs)

• May be cheaper than using credit cards long-term

Cons

• Adds debt at a time when finances are already stretched

• Interest increases total cost of moving

• Bad credit = higher APRs

• Some lenders may restrict use of loans for deposits

Alternatives to Moving House Loans

• Savings: Cheapest option if available.

• Bridging Loans: Short-term, property-backed finance (riskier, often expensive).

• 0% Credit Cards: For smaller, manageable costs.

• Overdrafts: Useful short-term, but costly if prolonged.

• Employer relocation packages: Often available if moving for work.

How to Budget for Moving House

1. Get quotes from removal firms early.

2. Account for hidden costs (packing supplies, cleaners, storage).

3. Budget for post-move expenses (new bills, décor, furniture).

4. Borrow only what you need — avoid long terms for short-term costs.

5. Check affordability before applying.

Worked Examples

Example 1 – Local Move (Renting)

• £2,000 for deposits + moving services

• Loan: £2,000 at 12% APR over 2 years = ~£94/month

• Total repayable ~£2,256

Example 2 – Family Move (Buying)

• £7,500 in solicitor, stamp duty, removals

• Loan: £7,500 at 9.9% APR over 5 years = ~£159/month

• Total repayable ~£9,540

Example 3 – Long-Distance Relocation

• £10,000 needed for removals, storage, temporary accommodation

• Loan: £10,000 at 8.9% APR over 5 years = ~£207/month

• Total repayable ~£12,420

FAQs

Q: Can I use a personal loan for rental deposits?
Yes, but some landlords prefer deposit schemes. Always check first.

Q: Are moving loans different from personal loans?
No — they’re just personal loans used for relocation.

Q: Can I get a moving loan with bad credit?
Yes, but interest rates will be higher. Credit unions may be a better option.

Q: Is it better to use a credit card?
For small costs and Section 75 protection, yes. For larger costs, personal loans are usually cheaper.

Conclusion: Move Without Money Stress

Moving house is one of the most stressful life events, made worse by unexpected expenses. A moving house loan can provide breathing room, letting you cover deposits, removals, and other costs without draining savings.

But remember: borrowing adds to your commitments at a time when your budget may already be stretched. The smartest move is to compare lenders, borrow only what you need, and choose a repayment term that matches your affordability.

Handled responsibly, a moving house loan can turn a chaotic relocation into a smoother transition.