How does buying a 2nd house work?

crxsi09

Hi guys,
Just wondering if you have for example 150k left of a mortgage and you sell your house to buy another house and you get 150k for that house and have a deposit to put with it to buy another house, do you have to pay off the original mortgage that you owe 150k on? Or could you buy the new house with the 150k straight out, and continue paying your old mortgage amount?
I presume you would have to pay off the 150k you owe with the 150k you get from selling, and then you would only have the deposit to put towards a new house?

Cheers

4ensic15

The mortgage is a charge on the house and has to be cleared when selling. A person with a tracker could lose big time if they sell.

Peregrinus

Basically, the bank sees this as the repayment of the first loan with the sale proceeds of the first house, plus the simultaneous advancing of a new loan to purchase the second house. The opening position is that the new loan is offered on the terms currently available for new loans, and that your eligibility for the new loan will be measured on the criteria currently being used for the granting of new loans. You may be able to negotiate them away from that position and to get treated in some respects based on the treatment you currently have, but until you talk to them you don't know to what extent they'll agree to this.

Islander13

Plenty of Banks have a tracker retention product which lets you keep the tracker plus maybe a premium of 1% or so if you move. Worth noting if you're in that boat

crxsi09

I currently have a tracker mortgage on my house..