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tbarson1
Posts: 72 Forumite
I took a mortgage out on my own on a 35 year term. I’ve been in it a year. It’s a 2year fixed rate. If I sell next year when the fix terms up what happens as they’ll be 33 years left? Interest is 2.3% or similar. Say mortgage was 90k and I sold for 120 what happens?
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You repay whatever the balance is on your mortgage account at that date.0
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Shortly before completion, your solicitor will obtain a "redemption statement" from your mortgage lender, which calculates exactly how much you'd need to give them to clear the mortgage - a combination of the outstanding balance, any interest that's accrued since the last payment, any exit/admin/transfer fees etc.
On completion, the sale price will initially be paid to your solicitor. The solicitor will transfer the amount shown on the redemption statement to the lender, and transfer what's left to you.
In the event of there being a shortfall ("negative equity"), the solicitor won't allow the sale to go ahead unless you can come to some arrangement with the lender so that they'll agree to drop their charge on the property even without being fully repaid. This might involve turning the shortfall into an unsecured loan, for example.0 -
worried_jim wrote: »And pocket the rest!
Or maybe dip your pockets for the rest depending on how high interest rates have gone
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Crashy_Time wrote: »Or maybe dip your pockets for the rest depending on how high interest rates have gone
What you on about? Op said mortgage is £90k and property could be sold @ £120k. That's £30k profit less fees. More than some bedsit renting saddo.0
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