Selling house-what happens with mortgage?

chechetka

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

AndrewSmith

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

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

Providing you meet the criteria of the new lender, there is no reason why you should not be able to get a mortgage

missile

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