Closing halifax mortgage account

geek1981

Hi guys

I'm new with selling a property and have a very basic question. I currently have a halifax mortgage with 157K left but finished the 3 year term, now on SVR. I'm selling my flat for 200K and so i have 43K equity on it at the moment. Since Halifax interest rates are bad, i will be closing down my mortgage account and get a new mortgage for my new house. How does the buyer transfer the 200K to me? Does that goes through to my solicitor's account and they close the account for me? Do they transfer the 33K directlly to my bank account? I just want to clarify this as i have to use it towards deposit to my new mortgage. Also what are the normal costs involved in closing a mortgage account?
Any help much appreciated!

cheers!

antrobus

geek1981 wrote: »

.. How does the buyer transfer the 200K to me? Does that goes through to my solicitor's account and they close the account for me?

Yes.

geek1981 wrote: »

Do they transfer the 33K directlly to my bank account?

Your solicitor will act in accordance with whatever instructions you give them.

geek1981 wrote: »

Also what are the normal costs involved in closing a mortgage account?

Depends on your particular mortgage deal.

Gary123456790

Hi,

Your mortgage account will be closed when you sell the house.

If you buy another at the same time, your solicitor will pass the equity on to the seller on completion.

Effectively your solicitor would
- receive funds from your buyer
- redeem your existing mortgage from those funds (equity would be left over)
- draw down the money on your new mortgage
- add this to your equity, and pass it on to the seller

If you are not buying at the same time, just selling, your solicitor will send it to your bank (current account). The solicitor would also take off his fees (the above is simplified!).

To summarise:

How does the buyer transfer the 200K to me?
Their solicitor sends it to your solicitor on completion

Does that goes through to my solicitor's account and they close the account for me?
Yes & Yes

Do they transfer the 33K directlly to my bank account?
Your solicitor does, yes.

Gary.

harvey115

Are you buying a new house at the same time selling your current one?

If so:

- You apply for a mortgage on the basis of Equity in your existing house as your deposit and anything extra you want to add
- You instruct your Solicitor to handle both the transactions, selling and buying
- The solicitor gets funds from your house sale and forward the amount as required to your existing lender (Halifax) and the remaining amount to the vendors of your new house
- The solicitor also adds in the mortgage funds you have obtained to buy your new place

Everything is handled by your solicitor, even they would ask your lender for the closing statement to settle the mortgage account or they might ask you to request that.

geek1981

Thankyou very much guys! Answers all clear, cheers!

And yes, i am part exchanging with TW so they are buying my flat back while i buy their new build (there is 30% extra on the new one indeed). So i think my solicitor will keep my equity towards my deposit.

Since I'm out of fixed deal there is no ERP on my mortgage anymore and so just need to repay full and close the account. I saw on halifax website they charge £235 account fee, but was just wondering someone here recently closed one recently.