Keeping mortgage if selling house & moving abroad

panicp

Hi all,

I wonder if anyone can give me some advice. I have a cheap fixed mortgage (1% permanently fixed just prior to the financial meltdown).

The issue is, I am now selling my UK house and buying a property abroad but because the UK mortgage is so cheap, I would prefer to keep paying this (rather than paying if off from the proceeds of the house sale) as that would allow me to use ALL of the money from the house sale to put down a bigger deposit for my new house.

Am I allowed to keep a mortgage going if I sell the house (I've probably got approx. 9-10 years left to pay - approx. half of the original amount). Or is there a legal requirement that you HAVE to pay off a mortgage if you sell up or can the building society decide?

Many thanks in advance if anyone can help.

Cheers

Dave :beer:

oli_ro

I think you already know the answer.

Think about it, what would be the mortgage secured against ?

panicp

THanks for your reply but no I genuinely don't know the answer as I had been told by some that it depends on the outstanding amount and whether you are viewed by the lender as high risk. Given we have a good credit and payment history and have paid over 50% of the loan (which was only £100k to start with), that we could keep the mortgage going?

amnblog

You have been mislead.


A mortgage is a loan secured on a property.


No property = No security= No Loan.

panicp

Hi Amn, Thanks for your reply and advice.

So is it a legal thing? No mortgage can be continued once the house is sold and this is without exception?

Cheers

Dave

amnblog wrote: »

You have been mislead.


A mortgage is a loan secured on a property.


No property = No security= No Loan.

amnblog

It is because, the 'mortgage' is the legal instrument that makes the property security for the loan.

Voyager2002

You may have been confused by the fact that many mortgages are portable: but that only means that if you sell and buy within the UK you can transfer the old mortgage to the new property. Unless "abroad" means "north of Watford" this is unlikely to be much help to you.