Selling House with Existing Fixed Rate Mortgage

KrisP87

Hi, I am planning on selling my house in the near future and I am planning on renting another house in another area after a sale goes through. The reason for renting for a period of time after selling is to get a feel of the new area I will be moving to rather than making a rush purchase and also hopefully making it an easier and faster sale on my current house as I won’t be in a chain.

I have an existing fixed rate mortgage which ends in 2029 so my question is, when I sell the house and I’m given the equity I have built up in the house (around £50K), will the early repayment charge be the only thing the lender will want from me? For info, my house is worth around £150K.

Ive never sold a house before so interested to know the above question and whether the equity I have built up will simply be transferred to my account?

Thanks,
K

la531983

Erm, how much is left on your mortgage?

The funds from the sale will pay off the mortgage, along with any fees. And you will then be given whatever is left over in "cash".

eddddy

Typically, you will have to

• payoff whatever you still owe on the mortgage.

• pay the early repayment charge to your mortgage lender

• pay your solicitor's fees

• pay your estate agent's fee

plus pay other related house moving expenses, like removal costs.

Whatever is left over will end up in your bank account.



Some mortgage lenders will allow you to port your mortgage with a gap of up to 6 months. i.e. If you buy another place within 6 months, you can continue with your current fixed mortgage rate terms - and avoid paying an early repayment charge.

But you need to check the t&cs of your mortgage to see if that applies to you.

mlz1413

I ported my fixed rate last year, i had a gap of about 2 months due to sale going through quicker than I could purchase,  but I had a 6 month period in which the fixed rate was held.

You don't automatically get your fixed rate again, you have to go through a new mortgage application and then if it's successful the fixed rate is applied.

If you complete a purchase within the terms of the 6 month gap then you get your early repayment charge back after completion. (It's taken when the mortgage is redeemed so do allow for this).

Ring your mortgage provider and get a full explanation of the process, you may need to book an appointment with a mortgage adviser. 

Also depending on your fixed rate you may want to try and keep the rate.

I understand not wanting to rush into a purchase but you can do some research before moving by reading the local paper online.

Also look on Rightmove at what is for sale and workout which areas are the very cheap houses and try to understand why.

If you live close enough go and drive around areas in the evenings and go for a walk at local parks to get a feel for the place.