Moving house in the middle of fixed term - question

We3

We are in the middle of a 5 year fixed rate mortgage. The rate of 1.39 is portable. We are looking to move to a property that is around 20k less than we've sold our current property for. What exactly would happen with regards the mortgage? Would we be able to use the difference of 20k to pay the stamp duty, estate fees etc?

london21

Contact your mortgage company.

LTV etc will play a part. 

silvercar

If you need the 20k to help with fees and costs you might as well keep the mortgage amount the same. If the LTV is still acceptable there shouldn't be an issue. Most lenders allow you to repay up to 10% without penalty, so you could use that to bring the mortgage down to the lower amount gradually.

kingstreet

We3 said:

We are in the middle of a 5 year fixed rate mortgage. The rate of 1.39 is portable. We are looking to move to a property that is around 20k less than we've sold our current property for. What exactly would happen with regards the mortgage? Would we be able to use the difference of 20k to pay the stamp duty, estate fees etc?

The mortgage will be repaid from the sale proceeds. The rate will be transferred to a new mortgage on completion. You cannot have a mortgage for more than the value of the new property so paying fees etc is not possible via that route.