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Selling house-what happens with mortgage?

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Hello there,

I have probably very silly question, but please be gentle with me:)

We are planning on byuing an older house or house that needs modernisation(auction, or other sources), do some work on it and than sell it (hopefully) with some profit. As we dont have so much cash (FTB), we will need to get a mortgage to buy it. The question is what happens with the mortgage if I sell the house within 6 months from getting it? Do I have to pay off the whole amount of what I owe or can I just keep on paying my monthly payments?

To explain: I would like to keep most of the money from selling the house, so that I can buy another one and do it again... My father has a building company back home in Slovakia, therefore can suplly me with cheap, but good quality workers to do the refurbishment.

Or are there any other ways of financing such a project?

As I said I am new in this area and I know I will have to do lots and lots of research...!

All your replies will be much appreciated. Thank you

Comments

  • AndrewSmith
    AndrewSmith Posts: 2,871 Forumite
    The mortgage is secured on the property by way of legal charge at the Land Registry.

    When the hose is sold the solicitors will automatically pay off the outstanding mortgage first.

    You have no control over this I'm afraid.

    Andy
  • chechetka
    chechetka Posts: 5 Forumite
    Thank you Andy.

    I thought so, but needed to have it confirmed :)

    So what if I will aply for another mortgage after selling the first house? Is there any chance we will get another one (once the first one is paid off)?
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    Providing you meet the criteria of the new lender, there is no reason why you should not be able to get a mortgage
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • missile
    missile Posts: 11,764 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Be careful to select a mortgage where you do not incur penalty for early repayment. If you own more than one property or are identified as a trading in property you may become liable for Capital Gains on the sale
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
    Ride hard or stay home :iloveyou:
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