Can You Transfer A Mortgage?

Kat1e

We were in the process of paying off our mortgage from the sale of our current property. The plan is to downsize and potentially be mortgage free but I've been a bit silly and searched for property above our budget and of course found a property that we love. We'd need a mortgage of around £60,000 to buy it though. We've timed it so we won't have any penalties when paying off our existing mortgage.
So, how could this work? Could we pay off our current mortgage minus the 60K and then transfer the debt to the new property or will we need to apply for a brand new mortgage? I have no idea how this all works now. There seems to be a lot of mortgages out there since we last applied for one lol.

kingstreet

In a word, no.

The current mortgage is repaid from the sale proceeds.

You apply for a new mortgage on the new property. You may be able to "port" the rate from the old mortgage to the new one. Check with the lender concerned.

obay

as above.....

Kat1e

Thanks for replying. The house I want to buy is worth considerably more than the 60K I need to buy it. Such a shame it can't just be a simple transfer but at least now I know.

kingstreet

It's the incorrect use of the word 'mortgage' which is the problem.

The mortgage is the security which ties the loan to the property, not the loan itself.

To remove the security, the mortgage. so the property can be sold, the loan has to be repaid. Portability introduced the idea of the loan terms being transferred so many thought that meant a mortgage could be transferred; which it can't.