moving with a mortgage but need a mortgage - how?

bs0u0128

this is probably dead simple, but how do you move from a house that has a mortgage on it, to another house, if you need a mortgage on that also?

DavidHM

You sell your house as if it didn't have a mortgage.

Your solicitor acts for your new mortgage lender as well as you.

He promises to pay off the mortgage with the proceeds of the sale of the old house. He does so - otherwise the buyers wouldn't be able to move in.

You then get a new mortgage on the new property, not necessarily with the same bank (although whoever you go with you will be assessed for affordability on the basis that the old mortgage will be paid off.

As long as your house is worth more than your mortgage, or you have cash to make up the difference (including stamp duty on the new property, solicitor's and estate agent fees, etc.), there's no problem.

dwight-van-man

If you're tied into your mortgage deal, I would also check the portability options and more importantly, whether the lender will allow you to borrow the amount you need for the new place.

fivepound

We are moving soon and our current mortgage is "portable" so we can simply use the amount we have on it on the new house. Chk with your lender if this is the same for your current mortgage. If it is then you don't have to pay any extra to move the loan onto your new property. Then, if you need more money you have to get a new product from the same lender.