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  • FIRST POST
    • tbarson1
    • By tbarson1 9th Apr 18, 1:44 PM
    • 72Posts
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    tbarson1
    Mortgages
    • #1
    • 9th Apr 18, 1:44 PM
    Mortgages 9th Apr 18 at 1:44 PM
    I took a mortgage out on my own on a 35 year term. Iíve been in it a year. Itís a 2year fixed rate. If I sell next year when the fix terms up what happens as theyíll be 33 years left? Interest is 2.3% or similar. Say mortgage was 90k and I sold for 120 what happens?
Page 1
    • davidmcn
    • By davidmcn 9th Apr 18, 1:49 PM
    • 8,786 Posts
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    davidmcn
    • #2
    • 9th Apr 18, 1:49 PM
    • #2
    • 9th Apr 18, 1:49 PM
    You repay whatever the balance is on your mortgage account at that date.
    • worried jim
    • By worried jim 9th Apr 18, 1:51 PM
    • 9,584 Posts
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    worried jim
    • #3
    • 9th Apr 18, 1:51 PM
    • #3
    • 9th Apr 18, 1:51 PM
    You repay whatever the balance is on your mortgage account at that date.
    Originally posted by davidmcn
    And pocket the rest!
    "Only two things are infinite-the universe and human stupidity, and I'm not so sure about the universe"
    Albert Einstein
    • ThePants999
    • By ThePants999 9th Apr 18, 1:56 PM
    • 1,282 Posts
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    ThePants999
    • #4
    • 9th Apr 18, 1:56 PM
    • #4
    • 9th Apr 18, 1:56 PM
    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.
    • Crashy Time
    • By Crashy Time 9th Apr 18, 4:42 PM
    • 6,665 Posts
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    Crashy Time
    • #5
    • 9th Apr 18, 4:42 PM
    • #5
    • 9th Apr 18, 4:42 PM
    And pocket the rest!
    Originally posted by worried jim

    Or maybe dip your pockets for the rest depending on how high interest rates have gone
    • worried jim
    • By worried jim 9th Apr 18, 10:30 PM
    • 9,584 Posts
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    worried jim
    • #6
    • 9th Apr 18, 10:30 PM
    • #6
    • 9th Apr 18, 10:30 PM
    Or maybe dip your pockets for the rest depending on how high interest rates have gone
    Originally posted by Crashy Time
    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.
    "Only two things are infinite-the universe and human stupidity, and I'm not so sure about the universe"
    Albert Einstein
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