Selling and downsizing before fixed rate ends

Tyler_Durden_UK

I will of course be seeking FA, but can someone please advise what usually happens under the following circumstances? At the end of this year my current fixed rate mortgage comes to an end. Between now and then I'm planning on selling my current home and downsizing to a smaller place. My current home is worth around £350k and I'll be buying something around £270k, the difference being what's left on my mortgage. If I move before the fixed rate ends will I get this difference and (let's say) be able to deposit it into a savings account and continue to make my normal mortgage payments so that I can pay it off in full when the fixed rate term ends ? 

housebuyer143

Tyler_Durden_UK said:

I will of course be seeking FA, but can someone please advise what usually happens under the following circumstances? At the end of this year my current fixed rate mortgage comes to an end. Between now and then I'm planning on selling my current home and downsizing to a smaller place. My current home is worth around £350k and I'll be buying something around £270k, the difference being what's left on my mortgage. If I move before the fixed rate ends will I get this difference and (let's say) be able to deposit it into a savings account and continue to make my normal mortgage payments so that I can pay it off in full when the fixed rate term ends ? 

No, if you sell the house the loan is repaid at completion as you can't pay a mortgage on a home you don't owe, thus meaning you will have to pay an ERC if you have one.