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Moving house in the middle of fixed term - question
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We3
Posts: 66 Forumite
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?
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Comments
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Contact your mortgage company.
LTV etc will play a part.0 -
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.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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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.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?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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