Selling house -outstanding mortgage

girseach

Hi all

This may sound like a daft question but.. I'm planning on selling my house in the new year and currently have 89k (ish) outstanding on my Mortgage. Is this going be the amount I will have to repay, or will it be less as its getting paid off early through selling the house??

Ive never sold a house before so i'm not 100% sure how it works

Many Thanks

gardner1

girseach wrote: »

Hi all

This may sound like a daft question but.. I'm planning on selling my house in the new year and currently have 89k (ish) outstanding on my Mortgage. Is this going be the amount I will have to repay, or will it be less as its getting paid off early through selling the house??

Ive never sold a house before so i'm not 100% sure how it works

Many Thanks

depending how long you have had the mortgage it might be more

girseach

I have had the mortgage about 7 years now - was originally for 100k I don't have any early repayment charges and the property is probably worth around 80k - 85k (but I have savings to offset the neg equity if needed)

Thrugelmir

The balance owed is the amount that will need to be repaid when the property is sold. Your solicitor will handle the monetary side for you. Along with the outstanding mortgage balance any other fees and costs will be deducted from the sale proceeds. The remainder will be yours.

holly_hobby

If its an interest only mortgage, you will still owe 89k (plus any exit admin fee).

If its a repayment, as only 7 yrs have passed there may be a slight reduction to the os capital balance, but it won't be 1000's.

You can ask your lender for a redemption statement, which will give you an upto date o/s balance, your solicitor will do the same as part of the conveyencing, to which if the proceeds from the house sale are less, you'll have to top up with your own capital. If you don't have sufficient capital to wholly redeem the mge, then you'll need to obtain the lenders consent for you to sell it, and come to an agreement regarding a repayment schedule re the remaining capital o/s.

Hope this helps

Holly