How To Swap House With Mortgage?

Swap House

A house swap/exchange is not a conventional thing for homebuyers. However, it exists in the market as one of the options of property buy and sale, and the mortgage also plays an important role. Due to the unfrequented occurrence of the house swap, the process is considered complicated. That is just the result of ignorance because the exchange of a house is not an entangled maze. A look at the basics of the concept may explain things better.  

What is house swap?

When two parties exchange their houses with each other through the sale and buy of the property, it is called as house swap.

Commonly house swap occurs between the people that know each other. However, nowadays, it is getting broader in its approach, and there are websites where people with the aim of house swap gather.

How does house swap work? – The major steps

A crisp and clear procedure takes place when you house swap. Here are the highlights of how things work when such property exchange happens.

  • In a house swap, one party sells its home to the other party and buys its home in exchange.
  • Both the parties only pay the difference left on the price of the properties.  
  • Stamp duty is applicable under the laws of ‘Stamp Duty Land Tax’, and it is chargeable on the market value of both the properties.
  • Example to describe how house swap works 

There are two parties determined to house swap with each other.

  • Party 1 – Oliver Smith
  • Party 2 – Harry Williams
  • The price of the house of Oliver Smith is £400,000
  • The cost of the home of Harry Williams is £370,000
  • Oliver will sell his house to Harry and will buy the house Harry and the same reciprocates from Harry.
  • If you talk in money figures, Harry needs to give the difference of £30,000 in cash or bank transfer.

The mortgage part

If you think that there is no role of a mortgage in a house swap, then that is wrong. There are mortgage lenders that offer funds for it. The amount is borrowed just to pay the difference in the price of the two properties.   

 You can hire a broker who will find a lender for you to support the borrowing of the amount to pay the difference. Several deals are available in the market for property purchase through house swap. The rules of eligibility and affordability are applicable, just as they are in any other ordinary property loan.

You can also port your existing mortgage deal if the aim is to continue the benefits of the current loan. Also, a new deal can be obtained through lucrative deals on remortgages from Broker in UK with the same procedures applicable to the other mortgage type.

Concessionary purchase AND house swap AND mortgage 

When you buy a house at a reduced price, it is known as concessionary purchase. Usually, it happens when a relative gifts a part of a home, which naturally reduces the total cost of the house. In such type of purchase, you need to know about the Inheritance Tax rules.

If you miss paying attention to the tax part, the mortgage approval possibilities may have adverse effects. All the steps in the process walk together, and the tax part is one of the most important aspects one cannot avoid.  

Contract after you agree on the house swap deal 

To some people, house swap sounds quite casual, but that is not the case, as the due procedure takes place. The contract appears once both the parties agree on the house swapping and the following happens for formality. The lawyer handles most of the things related to the agreement, as they need to ensure the legal perfection of every part of the process.

•Both the parties fill the information forms and provide to their lawyers. Provide all the necessary information required to complete the swap procedure.

•The lawyer needs to make the necessary searches of the house. From the current value of the property to the structural strength report obtained from the house survey, everything is essential.

•The legal officer also does the title check. The lawyer of the opposite party does the same.

•The contract can be a single document for both the sides or double, i.e. one for each.

•The lawyer of the other property takes an undertaking from your lawyer on the commitment that you will pay off the existing mortgage. The same happens from your side to know if the other party is paying off the mortgage.

Benefits of house swap 

House swapping may not be so popular, but it has its advantages. Know about them here one by one.

  • The house swap process is smaller in length as compared to conventional buy and sale.
  • Save money that you spend on paying the local property agents.
  • No need to waste time in property viewing as the buyer and the seller is already there
  • Pay only the difference between the two properties; it makes the mortgage approval easy.
  • It is much cheaper than the other forms of home buying and selling options.
  • You may get the chance to buy a house lower than the market value if it is gifted.

You can experience more benefits while going through the buying process. However, before a final decision, go through the related details as mentioned above and acquire the determination that you want to do it.


Homebuyers can gain a significant profit through house swap, mainly because it shortens the massive size of the mortgage. No suffocating adjustments in the monthly budget, speedy and uncomplicated process that saves time and money. 

If you are among those planning a sale or buy of your house, then consider a house swap at least once. The property market is getting broader and more extensive in approach through such home buying methods. The best thing is that the consensus seems to act positively on house swaps in the future.

Description – Have a look at the varied aspects of a house swap with a mortgage and the other related information. Know about how things work and what is the procedure.

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