selling and not buying again

ErolGirl

Hi, mortgage free, but been approved. I'm bit clueless!! Just wondering, if you buy somewhere on a 5 year fixed rate, 30 year mortgage, and decide to sell at some point and not buy a new place after you've sold, what would happen?

robin58

Well you would have to pay most properly a fee to get out of the fixed rate if before the end of term.

The bank would then expect when you finish the mortgage, the full amount that you borrowed minus what you have already paid them plus any interest you owe them.

Also may cost you a closing of mortgage fee.

If you are lucky, you bank any money you make after the above.

amnblog

You don't want to be doing that in the first 5 years.


If you feel you might, take a shorter term product.

ErolGirl

amnblog wrote: »

You don't want to be doing that in the first 5 years.


If you feel you might, take a shorter term product.

For what reason do I not want to be doing it though? Get out fees?

bitethebullet

You'll have early repayment fees during the 5 year fixed term. They can be quite high to begin with and usually drop each year of the fixed term. They're usually a certain % of the loan balance- could cost you a few thousand.