Yes, you can sell your house if you’re still paying your mortgage. One of the things you will need to consider is that you will need to pay your existing mortgage back with some of the proceeds from the house sale. You can still apply for another mortgage for the house you’re looking to buy in the meantime, but your lender will consider your current mortgage, even if you are planning to pay this back.
What can I do about my current mortgage when I sell my house?
You will need to speak to your lender and discuss their requirements, but usually you would have a couple of options. You can either pay the mortgage off when you get the proceeds from your house sale and then apply for another mortgage for your new house, or you can consider porting your current mortgage. Porting your mortgage basically means to transfer the current offer you have with the same rate to a new house.
You can discuss any terms with your lender which need to be met for you to port your mortgage. You are more likely to be approved for this If you have paid your mortgage payments in full and on time each month. However, if you have been in arrears and had late or missed payments then you may be declined. Porting is a great option if you don’t want to lose the current rate on your existing mortgage.
Are there any fees involved?
Your mortgage can be paid off early if you are able to pay the remainder off with the sale of your current property. It is always important to speak to your lender first before you consider this. Some lenders charge early repayment fees which you will need to think about and take some time to work out how much you’ll be paying back overall. You may also need to take in to account if you are able to afford these fees and any other hidden costs which may be involved. You could potentially have to consider delaying your move until the early repayment fees are more affordable.
Should I wait until I’ve paid my mortgage off?
Some people prefer to sell their home once they’ve paid their mortgage off completely. By doing this you are then free to use the proceeds from the sale in any way you like. But if this is something you’re not able to do then there are other options available. You are free to sell your house at any point through your mortgage as long as you can afford to pay back what you owe when the sale has been finalised. If there are any early repayment fees in place with your lender, then you might want to consider delaying your sale if you are able to afford to do so. Unfortunately, sales cannot always be delayed, therefore you may decide the early repayment fee is in fact worth paying after all.
Can I apply for another mortgage whilst I’m paying off my current one?
Yes, you can apply for another mortgage while still paying off your current one. If you are considering this option, then make sure that your mortgage lender is aware that you’ll be paying off your current mortgage in full when you sell your house. This way they can factor this into your affordability checks and ensure it doesn’t cause any issues.
