2007-02-06 21:09:46 · 9 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Normally yes - when you move, you have to pay off the old mortgage as techincially whilst you have a mortgage property the lender owns a proportion of your home. In order to release them from that ownership you have to pay them back (plus any early redemption penalites). If you stay with the same lender they may be prepared to offer a good deal on your new mortgage, and some may allow you simply to top up your existing loan without redeeming.
Early redemption penalties are common on fixed rate mortgages, and unfortunately if you must move, you will have to pay them. Mind you you have enjoyed a fixed rate at a time of rising interest rates, so it's not all bad!
Colin
2007-02-06 21:23:52 · answer #1 · answered by Colin S 2 · 0⤊ 0⤋
While the earlier answer about US mortgages is pretty accurate, there were, a couple years ago, several lenders selling portable mortgages in the US. Under the terms of most of those products, you could move once and increase the amount borrowed by 10% max.
I'm not sure if any of those loans are still around, but with today's rates being so low, it might not be a bad thing to consider getting.
2007-02-07 00:30:02 · answer #2 · answered by CJKatl 4 · 0⤊ 0⤋
In the UK you can take it with you, to the new property, and add on all the legal fees and stuff, but take advice as if your current product is a crap one, you might be better off paying the 3% and getting an all new better deal! Shop around for mortgages. Dont forget though the interest rates are rising, and a capped or fixed rate might be a better option.
Have a look at
www.moneysavingexpert.com
2007-02-07 00:07:30 · answer #3 · answered by My name's MUD 5 · 0⤊ 0⤋
Paying off a accepted loan is under no circumstances a sturdy theory. the money might want to be invested and make a better go back in interest than she will be in a position of ever get from the domicile and the money continues to be liquid. evaluate this: enable's say that your mom paid off the first and 2d and had little or not one of the reassurance funds left. Then she loses her activity and has worry for some reason looking yet another. She is going to the business employer to get a loan to carry her via because she's were given all this fairness interior the domicile, properly? incorrect!! they received't loan her funds on her personal domicile if she wouldn't have a job because the skill to pay off isn't there anymore. i'd pay off the 2d and make investments some thing in some thing lengthy time period because no matter if she retires, the interest from the funding will make the domicile price. My advice is for her to make a spreadsheet and that shows her the lengthy time period reward of having a loan and retaining her funds operating for her. she will be in a position of also pick a tax destroy that the loan will provide her. no matter if paying off your position as quick as a possibility is the classic questioning, that isn't any longer the nicely proper questioning - i do not care what her economic consultant says. Do the spreadsheet and see for yourselves.
2016-11-25 22:25:59 · answer #4 · answered by longhenry 4 · 0⤊ 0⤋
The legal postion is that a mortage is secured on the deeds of a property. So many of then are not transferable to a new property.
You'll need to check with your lender as it can be either way.
Woudl you pay £3K more for the house you want ? If so, just accept the redemption penalty and think of it as the house price going up by 3K
2007-02-06 21:26:19 · answer #5 · answered by Michael H 7 · 0⤊ 0⤋
It depends on your mortgage, some are portable, others are not. We had the same last year where we would have been charged £3k+ to pay it off so we simply topped up the loan and took it to the new house. If yours is not portable though you will have to pay it off and will incur the charges.
2007-02-06 21:18:31 · answer #6 · answered by RRM 4 · 1⤊ 0⤋
Sounds like you are in the UK. Not sure abou the rules there, but in the US, you cannot transfer your mortgage loan. The loan would need to be paid off when you sell.
2007-02-06 23:59:38 · answer #7 · answered by Anonymous · 1⤊ 0⤋
Generally you can carry a motgage over to another property, providing that the term of the morgage does not increase
2007-02-07 00:42:54 · answer #8 · answered by BRIAN S 3 · 0⤊ 0⤋
You should be able keep it, subject to a survey on the new house which the lender will carry out. Just speak to your lender
2007-02-06 21:19:26 · answer #9 · answered by elliotician 2 · 0⤊ 0⤋