Ending a mortgage

InhaleMood

Hi,
I am looking to potentially move out of my flat (shared ownership 30%) and rent somewhere else. I am just looking at what penalties there would be for ending the mortgage early, within a fixed term, to see if it is possible.
One query is to do with an overpayment I made on it last year.
It's possibly a silly question, but how would I see that overpayment? Will it be as if I just paid more on the deposit initially?
Any help would be great!

Thanks,

StuC75

All the overpayment has done is pay down the balance - unless your mortgage allows access to such funds (unlikely). The repayment charge would then just be calculated off the new balance.. selling a shared ownership property is also a little more complicated too..

zzzLazyDaisy

I apologise if this sounds patronising - it truly is not meant to be - but you do realise that you can't just 'end a mortgage' in the same way as you can end a tenancy? You have to sell the place, which with shared ownership, is often more complicated than simply selling on the open market.

First, there is no guarantee that the place is still worth as much as you paid for it, so you need a valuation of the property, and also a statement of how much is left to pay on your mortgage, to check that there is no shortfall (negative equity).

Speaking to your lender is a good first step, but I suggest that you also speak to the housing association and find out what their requirements are as well (assuming that the SO is with a HA).

kingstreet

You need to look at your original key facts illustration or mortgage offer for details of the early repayment penalties. These are normally expressed as a percentage of the amount redeemed.

InhaleMood

zzzLazyDaisy wrote: »

I apologise if this sounds patronising - it truly is not meant to be - but you do realise that you can't just 'end a mortgage' in the same way as you can end a tenancy? You have to sell the place, which with shared ownership, is often more complicated than simply selling on the open market.

First, there is no guarantee that the place is still worth as much as you paid for it, so you need a valuation of the property, and also a statement of how much is left to pay on your mortgage, to check that there is no shortfall (negative equity).

Speaking to your lender is a good first step, but I suggest that you also speak to the housing association and find out what their requirements are as well (assuming that the SO is with a HA).

Not at all....I should have explained more!
I have the surveyor coming round tomorrow to value the property and then HA have 2 months to sell to their list.