What happens to mortgage payments

tcummins

Hi, I have tried to search on this, but cannot find an answer.

I have presently sold my house (STC) and am looking at a new build, which will not be complete until April 07, my mortgage lender (Woolwich), have stated that they will hold my mortgage for six months (presently 5 Yr fixed 4.7%), to allow me to keep my rate. My question is between the time my house is sold and I move into the new build, do I continue to make monthly mortgage payments or are the payments suspended until the mortgage is transfered to the new property.

many thanks for your help, the Woolwich chap on the phone didn't know.

silvercar

tcummins wrote:

Hi, I have tried to search on this, but cannot find an answer.

I have presently sold my house (STC) and am looking at a new build, which will not be complete until April 07, my mortgage lender (Woolwich), have stated that they will hold my mortgage for six months (presently 5 Yr fixed 4.7%), to allow me to keep my rate. My question is between the time my house is sold and I move into the new build, do I continue to make monthly mortgage payments or are the payments suspended until the mortgage is transfered to the new property.

many thanks for your help, the Woolwich chap on the phone didn't know.

you redeem the old mortgage on the day you complete on the sale. you take out the new mortgage when you complete on your purchase. in the mean time you have no mortgage to pay.