Will We Have to Pay Off Our Non-Portable Mortgage When We Move??

josie112

We are thinking of moving and have just under £20,000 remaining on our Intelligent Finance mortgage. When we checked to see if we could 'port' the mortgage Intelligent Finance advised that our mortgage is not portable.

Does this mean that we will have no choice but to clear the outstanding balance in full when we move or is there any way we can just keep paying it off after we move? We won't need another mortgage as we are down-sizing and will be 'cash buyers'

If we do have to pay the mortgage off we'll be saving £700 per month in mortgage payments. What would be the best way of using this sum if we wanted an additional £20,000 to £25,000 for any improvements or extra spending when we buy?

Thanks in advance.

gary83

josie112 wrote: »

Does this mean that we will have no choice but to clear the outstanding balance in full when we move or is there any way we can just keep paying it off after we move? .

If it’s none portable then the proceeds of the house sale will have to be used to pay off the outstanding mortgage & any early repayment charges that might apply. You can’t expect to be allowed to just continue to be allowed to pay off a mortgage on a house you no longer own. Apart from anything else the house was the security on the loan, if you stopped paying the mortgage the bank would have repossessed and sold to get their money back, if you no longer own the house What could the bank do if you stopped paying it off?

Thrugelmir

josie112 wrote: »

Does this mean that we will have no choice but to clear the outstanding balance in full when we move or is there any way we can just keep paying it off after we move? We won't need another mortgage as we are down-sizing and will be 'cash buyers'

IF no longer write new mortgage business. Budget on clearing the remaining balance owed when you move home.