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

Discussion in 'Mortgages and buying and selling homes' started by pennywise, Sep 14, 2018.

  1. pennywise

    pennywise Registered User

    Posts:
    10
    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
     
  2. RedOnion

    RedOnion Frequent Poster

    Posts:
    1,679
    Yes.
    You can repay a mortgage at any time.
     
  3. Dave_Curry_IMC

    Dave_Curry_IMC Frequent Poster

    Posts:
    109
    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