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Repayment Charges on BTL Mortgage

dadson
dadson Posts: 1 Newbie
in Mortgages & endowments
Is it possible to keep a mortgage after selling a property without buying another one, the purpose being to keep paying until the end of the mortgage term and avoid charges. Of course the plan would be to sell the property close to the end of the mortgage period. Is it obligatory to declare the house sold to the mortgage company, as the payments keep being made.

Comments

  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    How would that work? The whole point of a mortgage is that the lender has a security over your house.
  • Edi81
    Edi81 Posts: 1,502 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    No. You clearly don’t understand how mortgages work.

    As David said a mortgage is a just a loan that is secured upon a specific property.

    If you sell then the mortgage needs to be repaid.
  • peter12345678910
    peter12345678910 Posts: 481 Forumite
    Part of the Furniture 100 Posts Photogenic
    I will also have this problem in 14 years. I just thought it would be better to sell slowly and find a good deal and just pay the repayment charges.
    When you look into an abyss, the abyss also looks into you. Nietzsche

    Please note that at no point during this work was the kettle ever put out of commission and no chavs were harmed during the making of this post.
  • kingstreet
    kingstreet Posts: 39,314 Forumite
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    The mortgage is the security, the charge over the property. It isn't the loan. Although the term is constantly misused.

    The loan has to be repaid so the mortgage can be released giving the purchaser unencumbered title to the property.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • csgohan4
    csgohan4 Posts: 10,600 Forumite
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    Hit the debt free wannabee forums if your worried about debt
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    dadson wrote: »
    Is it possible to keep a mortgage after selling a property without buying another one, the purpose being to keep paying until the end of the mortgage term and avoid charges. Of course the plan would be to sell the property close to the end of the mortgage period. Is it obligatory to declare the house sold to the mortgage company, as the payments keep being made.

    Really? You would not be able to sell the house without the lender getting paid - hence why they have a charge on the property.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    edited 28 September 2018 at 9:16AM
    Short answer. No.
    Long answer. No.
    Even longer answer. You don't have a choice, when the house is sold the conveyancer pays off the mortgage on your behalf. You don't get to keep the money and decide whether to pay it off
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    10,000 Posts Fifth Anniversary Name Dropper Photogenic
    peter12345678910 wrote: »
    I will also have this problem in 14 years. I just thought it would be better to sell slowly and find a good deal and just pay the repayment charges.

    How do you sell a house slowly ?
  • peter12345678910
    peter12345678910 Posts: 481 Forumite
    Part of the Furniture 100 Posts Photogenic
    AnotherJoe wrote: »
    How do you sell a house slowly ?

    More delay it to the last month of the mortgage. By putting a high price, allows me a lot of negotiating. Also I have to end the rental contract, before the last month of the mortgage. Or maybe I can change the mortgage from interest only to full payment but that may be higher than the rent.

    Though it may be a little tricky as not talking to the other partner my dad, but...
    When you look into an abyss, the abyss also looks into you. Nietzsche

    Please note that at no point during this work was the kettle ever put out of commission and no chavs were harmed during the making of this post.
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