Welcome to the reallymoving forum
Got questions and need some advice? Our forums have answers on everything from choosing the right property, to renting and selling.
  • If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below.

Announcement

Collapse
No announcement yet.

if i sell my house can i do what i want with the banks' mortgage money

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • if i sell my house can i do what i want with the banks' mortgage money

    I have a mortgage for about 120K.
    I have paid off about 5k already (so owe the bank around 115k).

    If I were to sell my house for about this sum (115k),
    could I do what I want this money?

    e.g. put it on a horse, invest in shares (and rent instead), rather than buy another house?

    Or is the mortgage only given on the proviso that it's tied up in bricks and mortar?

    Would I ever see this money or does it stay in the hands of solicitors ?

  • #2
    Re: if i sell my house can i do what i want with the banks' mortgage money

    Forgive me if i am wrong but you say owed the bank £120,000
    you have paid off £5,000
    and you now owe £115,000
    so if you sell now for £115,000
    minus fees legal and estate agents
    apporx £1000
    you will be £1000 out of pocket.
    www.tradesmanschoice.co.uk

    Comment


    • #3
      Re: if i sell my house can i do what i want with the banks' mortgage money

      Trades MASTER is right.

      A mortgage is a loan secured against a property. As soon as you sell your property the money is transferred from the buyers solicitor to your solicitor. Your solicitor will then repay the mortgage in full to the lender and pay you whatever is left over.

      Based on the figures above if sold at £115,000 you would certainly find yourself making a loss and be in debt to the tune of a few thousand pounds. There would be mortgage redemption fees, this can vary depending whether your tied into your current deal (£250-£4000), then solicitor fees (£500-750) and estate agency fees (£1000-£2000).

      Comment


      • #4
        Re: if i sell my house can i do what i want with the banks' mortgage money

        thanks, I was just using the figures as a guide (the sale could vary either way).

        but the main point i was interested in was - would i ever see the actual sum ?

        this suggests not:
        ...the money is transferred from the buyers solicitor to your solicitor.
        But what happens in a private sale without solicitors involved?
        what's the problem if I continue to meet the mortgage payments?

        Comment


        • #5
          Re: if i sell my house can i do what i want with the banks' mortgage money

          It's perfectly possible to sell your house privately without involving estate agents but I have never heard of a private house sale that did not involve the services of solicitors or conveyancers. In any case, there will be a clause on the title register for your house which will stop you from selling your property to someone else without the written consent of your mortgage company. This means that the Land Registry will not transfer the title, or ownership, of your house to your private buyer without the mortgage company's say-so - and they will only consent if they get their money back. Sorry, it just can't be done.

          Comment


          • #6
            Re: if i sell my house can i do what i want with the banks' mortgage money

            There must be lots of banks and building societies all over the country going to extensive measures of affordability checking and mortgage rationing.

            I expect nearly all of them are more than happy to hand over vast sums of money to home buyers without any security or charge on the property.
            So go ahead and sell and run away with all the lender's money!

            Seriously, ALL HOME LOANS are secured against your property.
            You cannot sell a mortgaged property or any property that has a charge by the lender on the title deeds. This means they get their money back FIRST
            BRAND NEW HOMES
            Information for UK new home buyers
            New Home Blog The latest news and views

            Comment


            • #7
              Re: if i sell my house can i do what i want with the banks' mortgage money

              Hi Bobby

              We're not taught this sort of thing in schools so it's not immediately obvious. Forgive me but you sound a little confused as to how buying homes with mortgages fundamentally works. Again, not to worry because unless you've had it explained to you, why should you know!

              We have an easy section on How Mortgages Work that should answer your question. Scroll down to 'How Does It Work When I Want To Sell My Home?'

              All the best

              Dan S

              Dan S
              Free Guides For First Time Buyers!

              www.FirstTimeBuyerGuru.com

              Comment


              • #8
                Re: if i sell my house can i do what i want with the banks' mortgage money

                The way im reading your post is this, you want a private sale, you want to continue to make the mortgage payments, so your suggesting you want to sell the house on the side so you get the money but maintain the payments ? am i correct ?
                if so you will end up locked up!
                www.tradesmanschoice.co.uk

                Comment


                • #9
                  Re: if i sell my house can i do what i want with the banks' mortgage money

                  TMC is right!
                  BRAND NEW HOMES
                  Information for UK new home buyers
                  New Home Blog The latest news and views

                  Comment


                  • #10
                    Re: if i sell my house can i do what i want with the banks' mortgage money

                    Sounds like you're trying to skip the country with £115,000 rather than pay off the mortgage.

                    Good luck!

                    Do write from prison...

                    Comment


                    • #11
                      Re: if i sell my house can i do what i want with the banks' mortgage money

                      Lol what are some people like, seriously,
                      www.tradesmanschoice.co.uk

                      Comment


                      • #12
                        Re: if i sell my house can i do what i want with the banks' mortgage money

                        This is THE PROBLEM in this country!
                        BRAND NEW HOMES
                        Information for UK new home buyers
                        New Home Blog The latest news and views

                        Comment

                        Working...
                        X