Selling but not Buying

kriss_boy

One last question!

If you sell your property in March... but anticipate you may very well wait 6 months to find the right property- what happens?

Would you simply have the cash from your house sale sitting in your bank account... but continue to pay back your lender the mortgage? Or as soon as you sell the house is there a period during which the mortgage lender seek to adopt those funds and therefore settle the mortgage.

Can you just keep paying off the mortgage as though it was a loan even though you no longer have the home?

Im guessing the answer is no as you could simply move the money into one of their savings accounts and make money out of them inlight of the currently low trackers.

olias

A mortgage is a loan secured against property. If there is no property to secure it against then the loan must be redeemed. So, in answer to your question, the mortgage is settled on completion of sale of your property by your conveyancing solicitor.

Olias

kriss_boy

Hmmm....

That would mean we would lose our cheap tracker deal. Is there no way at all you could keep your existing mortgage if you, say, committed to buying a property within a set period of time.

ie. promised the bank you wouldnt gamble the money away in a matter of days! Or is it common practise for the lenders perhaps to pledge to honour that particular package for when you do buy the next home?

The reason I ask is our 0.5% above the BoE tracker is a very, very good package. We can overpay as much as we like or just pay the interest from month to month to suit our needs.

Yorkie1

You might be able to transfer the mortgage deal onto a new property. This is called 'porting'. It is subject to the lender's lending policy and your meeting their criteria at the time, and you'd have to find out if a gap of say 6 months between sale and purchase would be allowed. Contact the lender.

olias

I have no personal knowledge of this, but I believe some lenders will allow you to port your existing mortgage accross to a new property. It is, however, my understanding that this would only be if the sale of your old home and purchase of your new home were simultaneous. You need to speak to your mortgage provider to confirm what their stance is.

Olias

somethingcorporate

Our old lender allowed us to have 3 months between selling our old one property and buying a new one without losing our existing deal.

You will need to talk to yours to see what they allow but much longer than this would probably be exceptional.

kriss_boy

I thought it was a given that you 'ported' over your existing mortgage to the next property.. but your suggesting some lenders would force you to take out a full new mortgage at their current rate. Thats a bit crafty!

Yup theres a lot to consider but I suppose the main thing right now is to keep saving! God saving is boring!!!

Wagner is in town tonight! The biggest star we have had since the Beatles in 1963!!! But a cheap night at my mates playing poker is the order of the day.

SAVE SAVE SAVE!