Mortgage Question for a Novice

delboy1973_2

Hi apologies if this is a stupid question - I think I know the answer but would just like some confirmation!!

I currently have a new build property that I own 100% but have a second charge on for 20% of the property (ie a builders interest free loan for 10 years) and the rest is mortgaged in my name.

I have checked with the mortgage company and I can transfer my existing mortgage If I want to buy a cheaper property - but how will this work.

If I am transferring I take it that I wont have to put a deposit down as the mortgage is already in place????

Thanks

CloudCuckooLand

Did the 20% form the deposit for your first mortgage, or did you put some cash down?

If the former, when sold, the 20% gets paid back to the developer, leaving you with less than you might expect to carry to another property.

If the latter, maybe it will be ok. But that will depend on how much you can sell it for, still.