What Happens To My Mortgage When I Sell My House

When you sell your house to buy another the mortgage on your current house is repaid.

What happens to my mortgage when i sell my house. How a mortgage works when you take out a home loan your lender places a mortgage on your property. Your mortgage is secured on your property which means your lender won t allow you to sell it unless the mortgage is repaid in full. In the majority of cases unless you are porting it the mortgage on your existing home is redeemed paid off when you sell. What happens to my mortgage when you sell your house in the uk.

What happens to my mortgage when i sell my home. First ask your mortgage lender about your current mortgage payoff when selling a house. Different circumstances could affect your ability to sell your house while in a fixed rate mortgage so chat to an advisor by calling 0808 189 2301 or make an enquiry to discuss what your options may be. With the exception of assumable mortgages such as some federal housing administration and veterans affairs loans you can t sell a home and transfer the existing mortgage to the buyer.

Most australians who sell their home don t own the property outright. This appears on the property title and means they have a formal interest in it. Ask a mortgage broker about selling your home with a fixed mortgage. Mortgage lenders prevent you from passing your loan on to another borrower.

The solicitor or licensed conveyancer handling your paperwork will contact your lender for a redemption statement and repay the outstanding loan amount to them out of your buyer s completion funds. Go along with it or refinance with another company. There is a clause in most mortgage contracts that says the lender has the right to sell the mortgage to another servicing company. When you sell your house at below the value of your outstanding mortgage this is known as negative equity.

How to avoid having your mortgage sold. If you re getting a notice that your loan is being sold you have two options. What happens when you buy and sell a house at the same time if you sell first by all accounts if you re trying to buy and sell a house at the same time selling first is the easier way to go. It s a risk when house prices are dropping if you bought a house at the top of the cycle and are in a position where you are required to sell it at less than the value you ll still need to make.

If you re one of them and wondering what happens to your mortgage when you sell read on.