Can you repay a mortgage just months after it kicked off?

pennywise

Registered User
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Hi

Since banks no longer offer bridge mortgages, we have worked out a solution that will allow us to borrow to buy a second property. However, we don't intend to rent our current property for more than a few months. Our intention was always to sell it after we had found a new place and settled in.
We have enough aside to cover a double mortgage for a few months too, in case the property is not rented immediately.
The question is: can we apply for a mortgage, buy a property, sell within months the first property and refund the first mortgage in full, as well as part of the second one? (according to my estimates, we should be in a position to refund up to a third of the 2nd mortgage)?

Obviously, I don't want to ask to the bank as it's not in their interest to lend for such a short term...

Thanks
 
Yes, as RedOnion said. Just make sure to take a variable rate on at least the portion of the new mortgage that you intend to clear, to avoid paying an early redemption penalty that would be charged on a fixed rate.

Best regards,
Dave Curry (broker)
https://www.linkedin.com/in/davecurryirl
 
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