Can I sell my house if I still have a mortgage on it?

Daniel87

I am thinking to make a mortgage to buy a house, but if let's say after few years i change my mind can i sell the house even if there 10 years of mortgages left and , get money for what i payed (my deposit + all monthly payments or at least a big part )

foxy-stoat

When you sell the lender gets the redemption amount, your solicitor takes their fees and pays the estate agent, you get back what ever is left.

You dont get back your monthly payments or the interest you paid - you get the equity thats left.

ACG

When you sell and the money comes in to the solicitor. The solicitor will pay off the mortgage and pay you the difference.

Nobody can say what you will get as it depends on what you buy for, what you sell for, how much you have paid off and whether or not there are any early repayment penalities from the mortgage lender.

PasturesNew

Daniel87 wrote: »

...get money for what i payed (my deposit + all monthly payments or at least a big part )

Well, that's not how it works.

You can do it. It's what many people do.

You buy a house, put down your deposit. You will pay stamp duty and solicitors' fees.
You pay monthly mortgage amounts.
You sell the house. You will pay estate agent fees and solicitor fees.

You will never "get back your monthly payments".

When you sell, the money for the house will go to pay off the mortgage. Of what's left the estate agent will be paid and the solicitor will be paid. You will get whatever is left over. You might get £1k, you might get £100k, but your "monthly payments" are gone.

h240

We are in the process of selling our house and buying a new one. We basically get back our capital which was our deposit for current house and the house value has increased so some equity. But the estate agent fees, solicitor fees do bring it down obviously the money for the sale of the house pays off our mortgage and we have what is left of that

Caz3121

Daniel87 wrote: »

all monthly payments or at least a big part

at the start of a mortgage much of your monthly mortgage payment will be interest
eg £100k 25 year mortgage 2% monthly payment £424
After 10 years (120 months) you will have paid £50,880 in payments
Your remaining mortgage would be £65,870
Your £50,880 will have paid £34,130 off the capital and £16,750 in interest
you can use the calculator here to play about with numbers
https://www.moneysavingexpert.com/mortgages/mortgage-rate-calculator/

Daniel87

h240 wrote: »

We are in the process of selling our house and buying a new one. We basically get back our capital which was our deposit for current house and the house value has increased so some equity. But the estate agent fees, solicitor fees do bring it down obviously the money for the sale of the house pays off our mortgage and we have what is left of that

Can you give me some numbers to have a ideea

h240

We’ve only been in our house 2 years we put down £30,000 deposit so we get that back, the sale of the house has been accepted and that has increased £10,000 since we bought it 2 years ago so obviously that will pay off our mortgage and leftover from mortgage amount is £8,000 the solicitor will have all this money we won’t see it as it’s all going to the new house we are buying but we’ve come out with around £48,000 in total with deposit, equity and capital if that makes sense

h240

And we have just come out of our 2 year fixed rate so early repayment charge is £80 or it would had been ALOT more if still on fixed rate

foxy-stoat

Daniel87 wrote: »

Can you give me some numbers to have a ideea

Their numbers will be irrelevant as they will be in a different position than you.

Brock_and_Roll

Daniel,

Gets give some example numbers:

Cost of House 150k
Deposit 22.5k (15%)
Mortgage Term: 25 years
Interest Rate 2.5%
Mortgage amount £127.5k
Monthly Payment £570.79

So lets assume:

a) you sell the house after 10 years
b) interest rates have remained the same
c) house prices have risen at 1% per annum over 10 years

So ignoring all the costs (stamp duty, legal fees etc) the figures would be as follows:

Sales price: £165,693
Mortgage outstanding £85,945

Net Proceeds: £79,748

Total payments over the 10 years would have been £68,494.80 of which £26,940 would have been interest.