Redeem mortgage before completion?

rich3245

Hi,

We exchanged on our house purchase last week and are completing on 17th December. We have a mortgage on the house we are selling and are taking out a new, larger, mortgage on the house we are buying, with the same lender (ybs). We can afford to redeem our current mortgage entirely now (and would not be liable for any early redemption charges).

I am unsure if we should just wait for the old mortgage to be redeemed on completion date, using the money from the sale or if it would be beneficial (one less thing to go wrong on completion day?) to redeem the mortgage before completion date?

I will discuss with my YBS mortgage advisor next week but any advice prior to the conversation will be really useful.

Many thanks,

Richard

G_M

Have you exchanged on your sale? If not


a) can you afford to purchase without a mortgage or
b) will YBS (or any lender) be wiling to lend on your purchase when you already have an existing mortgage? ie can you pass affordability checks for both mortgages simultaneously?


Most people would Exchange /Complete on both their sale and purchase simultaneously. The sale money would ten be used to pay off the existing mortgage (with any left over cash going towrds the purchase) and the new mortgage would start on the purchase the same day. But if you've only Exchanged on your purchase then you can't do that.

davidmcn

G_M wrote: »

Most people would Exchange /Complete on both their sale and purchase simultaneously.

Reading between the lines, I think they are completing sale and purchase simultaneously (I'll assume they are anyway).

In answer to their question, no it's not going to make much difference. Redemption is something which happens after completion (the solicitor keeping back enough funds to do so), so it's not as if e.g. a delay in sending the funds to the lender will hold up completion. All it will achieve is removing one task from the solicitor.