noob questions about mortgages

dancetrack

Hey all,

Just got a few "noobie" questions about mortgages

if i get a mortgage for say £200,000 and decide that i want to move after 6 months, do i still have to pay the mortgage once ive moved, or do i pay it off with the money i get for selling the house and then get another mortgage on another house?

If i happen to sell the house for more than £200,000 and i have some left over money, do i have to pay tax on that or anything? is it seen as a "profit"?

Thanks!

Dancetrack

herbiesjp

If you think you are going to move after 6 months, then I would suggest getting a mortgage with no penalties at any time.

You could get a portable mortgage to take to the new property, but the porting is not guaranteed and riddled with many problems for the unsuspecting applicant.

If you sell the property, you clear the mortgage with the sale proceeds and take the profit. As long as the property has been your main residence there is no tax to pay on the profit.

wymondham

If you think you're going to move in only 6 months I'd go as far as to say don't buy now - rent for this 6 months, as prices are falling....

dancetrack

thats great, I think i have it sorted in my head now

thanks for the replies!

dancetrack