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  • Writer's pictureThe Cedar Crest Team

Selling A Mortgaged Property

Can I sell my house before the end of the mortgage term?


 


 

Many homeowners find themselves in a conundrum when it comes to selling their property before they’ve fully paid off their mortgage. Unless you’re fortunate enough to own your house outright or have decided to spend your entire life in your first home, this is a situation you’ll likely face.


The good news is that selling your house before the end of the mortgage term is entirely possible. As long as you can afford to pay off the remaining balance of the mortgage, there’s no restriction on when you can sell. An alternative option is to transfer your existing mortgage to a new property.


 

WITHIN THE PERIOD WHEN EARLY REPAYMENT CHARGES APPLY

If you’re selling to free up some cash and don’t plan on purchasing another property immediately, ensure the sale price is higher than the outstanding mortgage balance. Consider any fees you might be responsible for, such as early repayment charges. Negative equity may present an issue in times of low property prices, though this is relatively rare.


Your next step should be to contact your mortgage lender to determine if you are still within the period when early repayment charges apply. The only surefire way to avoid these charges is to wait until your mortgage deal ends. Most people opt for a fixed term of three to five years, after which early repayment charges will not apply.


 

SECURING A BETTER DEAL WITH A NEW MORTGAGE PROVIDER


If you can secure a better deal with a new mortgage provider, the savings could outweigh the cost of these charges. It’s advisable to discuss your options with us so we can guide you towards the right option for your particular situation.


It’s possible to sell your house and keep the mortgage, provided you use the mortgage to purchase another property. This process, known as ‘porting’ your mortgage, is generally feasible, though it depends on factors such as your income, age, employment status and property type. For specific details about your mortgage, we can liaise with your lender.


 

TRANSFERRING YOUR EXISTING DEAL TO ANOTHER HOUSE


Porting your mortgage – transferring your existing deal to another house – can be beneficial. It can save you significantly if you have a favourable fixed rate or are still within the early repayment charge window. Plus, it’s less hassle than starting an entirely new application with a different mortgage company.


However, there’s a catch. If you’re selling to buy a more expensive property, porting could require two mortgages – your existing one and a second to cover the price difference. To port a mortgage from one property to another, you must complete a simple application process. Most mortgages are portable, but your personal circumstances and those of your property will determine your eligibility.


 

>> COMING TO THE END OF YOUR CURRENT MORTGAGE DEAL? <<


Whether you’re coming to the end of a fixed rate, switching from a tracker or thinking about moving off a variable rate, we know you’re facing a very different market than last time.




Cedar Crest Ltd – telephone UK T: +44 (0) 203 883 1017,

HK T: +852 6645 4462 – email info@cedar-crest.co.uk 


Your home may be repossessed if you do not keep up with repayments.

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