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Clear mortgage? And apply for a new one?
majorstare
Posts: 19 Forumite
I hope you can offer some advise.
We currently owe £68,000 on our mortgage, the house is on the market for £169,950.
Iam lucky that i have been given £155,000 to put towards a new, larger house (when/if we sell).
It would really help us if the mortgage and outstanding loans (£5,500) were cleared, this would release £750.00/month to put in a savings account and some money to update the house to help it sell. Plus make day-day living easier.
My questions.....
I have heard that clearing the mortgage could make it harder for us to apply for a new mortgage when we sell our current property?
Thanks
We currently owe £68,000 on our mortgage, the house is on the market for £169,950.
Iam lucky that i have been given £155,000 to put towards a new, larger house (when/if we sell).
It would really help us if the mortgage and outstanding loans (£5,500) were cleared, this would release £750.00/month to put in a savings account and some money to update the house to help it sell. Plus make day-day living easier.
My questions.....
I have heard that clearing the mortgage could make it harder for us to apply for a new mortgage when we sell our current property?
Thanks
What goes around - comes around
give lots and you will always recieve lots
give lots and you will always recieve lots
0
Comments
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Whoever told you that is wrong.I have heard that clearing the mortgage could make it harder for us to apply for a new mortgage when we sell our current property?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
check with your lender what fees you will have to pay to clear the mortgage early and if any penalties.
When you sell the house you will have to pay these fees anyway !
It you can become mortgage free then do so and put the rest of the money in the best paying instant access account you can find for when you move.
A mortgage is based on your ability to pay it and how much equity you have in the property. the lower loan to value the happier the lender is to give you
the loan cos if you cant pay the mortgage they can sell it and recover there
money. GOOD LUCK0
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