resignation of mortgage. how have I to do it?

john1976_2

got mortgage rbos. 3 yaears were on fixed but now they are givin me variable about 4%. i've to push them for another 3 years on fixed but then probably i will move overseas. how to resign of the mortgage? is all money paid allready lost? I did some improvements to the property new fencing, driveway etc. any idea?

_Andy_

I'm sorry but I don't understand your question. What do you mean by 'resignation of mortgage'?

opinions4u

If I've understood you correctly, the answer is:

Sell the house.

The proceeds will repay the mortgage.

If there's anything left over, you keep it.

If it doesn't pay off the full mortgage you have to pay them the difference.

beecher

When you sell your property, you repay the amount outstanding on your mortgage. If you sell for more than the outstanding amount, you keep the money. Keep an eye on the local property market and you should have an idea if you have any equity.

Wutang_2

Maybe spend some of the equity on english lessons.

john1976_2

yes I know my English is not good like Yours.
Resignation means just "These times I'm not sure I will stay more than three years here. I used to live in germany in the past. In fact I just worry about future and I do not know how to do it or should I to do it. I'm asking just in case"

hoggums

I still don't understand what the question is.

zzzLazyDaisy

It sounds as if OP doesn't fully understand the difference between renting and having a mortgage, and thinks he can simply terminate the mortgage and hand the keys back?

That was a common misunderstanding back in the 1980's when lots of people handed their keys back to the lender and gave up the mortgage, without realising the ramifications of doing this.

OP, this is YOUR house. It is YOUR responsibility. The mortgage is just a loan to help you to buy the house. If you don't want to make any more mortgage payments, you must repay the loan. How you do that is your business, but most people sell the house and use the money to repay the mortgage.

EDIT - just for clarification, it is not possible to sell the house and not repay the mortgage, as the solicitor must first settle the debt to the lender, before any surplus is paid to the person who is selling the house.

dippydog_2

Are you saying you don't want to continue with your current mortgage provider but want to retain the house? If so, you need to look for a new mortgage deal and see if you can get a better rate but be mindful of costs of transferring a mortgage and whether they rate justifies the costs - ie arrangement fees, mortgage exit fees etc.

If you are saying you don't want to retain the house as you are moving abroad, then you need to get your house valued and calculate whether you can afford to sell - will your anticipated price cover repayment of the mortgage?

Of course alternatively you could rent the house subject to mortgage provider's consent.

john1976_2

Thanks for Your answer. I just needed info how it works in practice. what first to do and how to do it when I will made final decision. I dont want to put the keys at the desk and say "sorry" .

thespirit33

john1976 wrote: »

Thanks for Your answer. I just needed info how it works in practice. what first to do and how to do it when I will made final decision. I dont want to put the keys at the desk and say "sorry" .

You couldn't do this anyway - as the house is legally yours. As others have said, you'll need to sell then pay off the mortgage. A solicitor will deal with the legal side of things.