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Part exchange on a new build - how does the mortgage work?
Goldust
Posts: 532 Forumite
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.
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.
0
Comments
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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.0
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