FAQ on mortgages

Do I need to keep up repayments on my mortgage?  Even though you have agreed a sale, your mortgage payments must be up-to-date on the completion date.  Please make certain that you do not cancel your standing order or direct debit too early!

Will I have to pay a penalty when my mortgage is paid off? We advise you to check with your lender before exchange of contracts whether there are any penalties for paying off your mortgage, and ask for confirmation of this in writing.

What happens if I am selling my property for less money than I owe my lender?  This is called ‘negative equity’ and, if it applies to you, then you need to tell us as soon as possible.  If you are not in a position to make up the difference between the sale price, after deduction of agent’s and legal fees, and the amount owing to your lender, you will need to discuss with them to see what can be agreed.  We cannot exchange contracts unless we have written confirmation from your lender of the amount required to pay off the mortgage.

What happens if I owe money to more than one lender If this is the case then you need to tell us immediately, as we will need to find out how much you owe to the lenders and check that there will be sufficient to pay them off.

When do I cancel my property insurance? You should not cancel your property insurance until the completion date.

Can I use the sale deposit towards my new home? Yes – normally speaking as the deposit.