Transferring a mortgage question

bigmouk

I have a great 5 year fixed deal offer on my current property (due to complete the re-mortgage is the next month or so). However, I'm also considering moving house but dont want to lose the offer on my current property. The 5 year mortgage is portable so thats fine if I sold my current property and then moved to another say in 6 months time.

I know how hard it is to sell a house at the moment so I was considering moving into a rented house in a few months time. Then I could decorate my property throughout, new carpets, new kitchen, loads of other jobs to get it absolutely mint then put it on the market with no chain and vacant - to have the very best chance of selling quickly with no hassle.

If I sold the house but then wasnt ready to buy another property straight away what happens to the mortgage ? Does it have to be redeemed because there is no property to transfer it to (that would incur an ERC) or can the building society 'hold' the loan amount and I continue to make monthly payments until I find a property ?

Sorry if that sounds a bit complicated!

Any advice would be appreciated.

fabjenni

Quick answer is yes, you would have to pay the ERC when you sell the property. Check how long the portability on your mortgage lasts for (generally 6 mths) & providing you complete on a new house within this time, the ERC should be refunded, but if you are contemplating this check with your lender to make sure.