Do I Have To Repay My Mortgage?
If you have a mortgage secured against the property you are selling, then your mortgage provider will require you to repay this money following the completion of the sale.
A mortgage is secured against a property via a legal charge at the Land Registry, so the new purchaser will require this to be removed in order to register their purchase. As your conveyancing solicitor, we will act on your behalf to transfer the mortgage payment to your lender once the sale has been completed.
However, if you plan on using the same mortgage lender for the purchase of your new property then it may be possible to transfer your mortgage. Many mortgages are portable, allowing you to transfer it from the property you originally borrowed against to the property you are purchasing.
We advise approaching your mortgage lender early in the process, as they will need to value the property you intend to purchase, particularly if you are needing to borrow additional money in order to purchase it. Be aware that you will usually be required to pay a fee to transfer your mortgage to your new property.
Alternatively, purchasing a new property gives you the opportunity to shop around for a better mortgage deal with a different provider.
We advise checking if there are any outstanding penalties on your existing mortgage, such as interest charges or additional fees, that you will be required to pay. This will help you to better calculate a better mortgage deal.