Mortgage Help

b1rrell

Hi, I'm needing a bit of help about my mortgage.

I'm currently 19 months into a 25 year mortgage and I'm going to sell my flat and move into a bigger house, which will no doubt be more expensive. This might sound like a stupid question but what would happen if I sell my house quite quickly and have yet to find another property to buy? If this happens my girlfriend is letting live with her until I find a place. But what would happen with my mortgage? Would the money that I get from selling my home pay off the mortgage, then would I get a new mortgage for my new home when I find one I want to move into?

This part of mortgages just confuse me.

Thanks

GMS

Ask your current lender if your mortgage is 'portable' meaning it can be switched to another property. This would mean you avoid any Early Repayment Charges. Some lenders will allow you to repay the mortgage and ERC's then refund the ERC's if you take out another mortgage with them within a specified time.

Any porting of a mortgage is subject to meeting lending criteria at the time of application.

It may be that you are better with a new lender.

Any surplus left from the sale of the property after clearing the current mortgage and any fees could be used as a deposit for a new mortgage

b1rrell

Thanks for the reply! That clears it up a bit.

So what would happen if my mortgage turns out to be portable, I sell my house and I still haven't found a new house that I want to move into. Would my lender hold on until I find a new home, no matter how long it takes?

kingstreet

No. Normally you'll have perhaps three to six months depending on the lender. You'll pay any early redemption penalties when you sell and get this money back when your new mortgage completes - if you manage it in time.

You'll need to be able to qualify for a new mortgage with the lender as you're once again a whole new applicant for the next one!