Silly mortgage questions

Summer69

Apologies for the silly question, but I can't seem to find a clear cut answer (or one that I understand at least.)

When you have bought a property, and you come to the end of your mortgage deal, if you look at new deals do they carry out a valuation on your property? And then base your new mortgage deal on the current price of your property? Or does it stay based on the property value at the time that you bought it?


Also, what then happens when you sell your property at a higher cost than what you bought it at? What happens to that extra money?

Once again, I realise these are silly questions. Thank you

ACG

If you stay with the same lender they will base it on the original valuation usually - although sometimes they will do a desktop valuation or you can pay to have ti revalued.

If you switch lenders they usually include a free valuation.

When you sell the property, the person buying it has their funds (whether that be savings/a mortgage/gift etc) transferred to your solicitor.

Your solicitor will pay off the mortgage and any associated fees and transfer the remainder to you.

Rollinghills

As above.
It's different if you get an equity loan with Help to buy but if you're not thinking of that no need to get confused. With a mortgage your debt is a fixed amount.

You should consider the scenario in which your property sells for less than the outstanding mortgage amount. This is called negative equity and you may have to find extra money to sell the property because what you'll get won't cover the mortgage you need to repay.