Getting 'out' of a fixed term Mortgage

Liam710

I am a first time buyer and want to buy the house I am currently renting. The owner is keen to sell however there is an obstacle.

The owner is in a fix term mortgage until Nov 2010. If I was to buy the house would the owner be hit with a penalty for breaking the Fixed Term?

Any help anyone can give is greatly appreciated.

vicky_kidder

I'm not too sure whether they will be hit with a penalty but I wouldn't let it concern you either way - the owner clearly isnt concerned as they are 'keen to sell' so even if they do have to pay a penalty it is obviously within their budget.

Good luck with buying your house!

Richard_Webster

Depends on seller's position and how he sees the property market going in the period to the end of his fixed rate.I would think.

If he is desperate to sell now then he will take the hit because he might get less in a few month's time.

If he isn't desperate and he thinks things will improve by the time his fixed arte hnds then he might want to wait.

From your point of view you just make him an offer and see what he says.

huntersc

He probably will have to take a hit, could be around 3% of the outstanding mortgage. It depends on whether he has penalties on it. He could port it though and buy a new place and then would be okay. In any case, it doesn't really matter to you does it?

Liam710

Thanks for your responses, it only affects me in that the owner will be less inclined to sell the property before Nov 2010 if the fee/penalty of selling is high.

lynzpower

if hes keen to sell now, Im certain he wont want to wait another 24 months or so to save his mortgage penalty