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

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

  1. pennywise

    pennywise Registered User


    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...

  2. RedOnion

    RedOnion Frequent Poster

    You can repay a mortgage at any time.
  3. Dave_Curry_IMC

    Dave_Curry_IMC Frequent Poster

    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)
    Ravima likes this.