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What happens with your mortage when you downsize

I want to downsize to a smaller house, what are my options with regards to the mortgage? I am presuming that I will have to sell my current house and close the existing mortage before buying and taking out a new one, I don't have the funds for a deposit in order to buy before selling, this seems like it will be a difficult, timely and costly process in the current market with having to rent in the interim etc, can anyone suggest an alternative please, thanks in advance

Asked on Jan 29 2012, Home Finance in Blackwood | Report content

Answers (3)

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  • Speak to your mortgage provider and consider part exchange if you don’t want to rent in-between.

    Web reference:

    Answered on Jan 30 2012, Report content
  • As above - speak to your mortgage provider. If you have equity downsizing should not be an issue. Your deposit for the purchase can be the deposit you take for your sale so no problem there. Your solicitor will redeem the old mortgage on completion of the sale and receive the mortgage funds on your purchase if you change mortgage provider. If you keep the same lender probably just a matter of reducing your monthly payments

    Answered on Feb 8 2012, Report content
  • Your mortgage could also be portable, which means you can move it to another property as long you have enough equity and the mortgage provider is in agreement. As the above answers best to speak to your mortgage providers customer services department.

    Answered on Sep 19 2012, Report content

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