Mortgage Shortfall in Practice

atkieuk

Hello,

I am looking for some advice on mortgage shortfall and how this works in practice. For example, if Lloyds is the lender then must they give permission in advance of accepting a 'short' offer on our home, and do we need to have proof of shortfall funds in place prior to the sale? Would we, in effect, be better off getting a loan and instantly paying that to the mortgage balance (taking away early penalty payment)?


Any help or advice would be appreciated, or even any recollections of someone who has been in this situation. We are not in serious financial difficulty, but do require to move home (necessitating selling).

Many thanks.

Simon_gloster

Technically possible, all the lender is interested in is getting their money back.

If the solicitor is happy the funds are made up of sales proceeds and a loan (also the lender), then that is what the lender will deem sufficient in order to remove their interest in the property and allow your buyers lender to place their charge post completion.