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Part exchange on a new build - how does the mortgage work?

Hi,


My 5 year fix ends at the end of March and I'm currently considering my options.


There's quite a few new builds round our way currently and whilst I know I may lose a few quid doing it this way, I'd prefer the peace of mind and minimal hassle of part exchange if it is a viable option for me.


So here's the bit I don't understand. As I don't completely own my house, I had a few questions.



Do they pay the balance of my mortgage and then the remainder of the sale proceeds goes to me as a deposit on my new mortgage on my new property?



Can I change mortgage providers at this point if I can secure a mortgage from a new lender during the overall process?



I can give specific figures if that helps but I am in a position now where I can book a new (and substantially better) rate with my current provider but then I am stuck with them or an early repayment change if I then decide to do the part exchange.

Comments

  • Jane_B
    Jane_B Posts: 131 Forumite
    They essentially act as the buyer for your property, nothing difficult or confusing about it. It would progress the same as any other sale would.
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