selling old house, buying new, what to do with mortgage?

[stanbowles]

Query for boarders,

Currently about to sell current house (in my name) and buy a new house with partner. Have ten years outstanding on current mortgage (ECB + 1% tracker with ICS) but see that banks have stopped doing trackers.

My question: When selling current house, do I have to 'extinguish' current mortgage, ie pay off remaining amount with sales proceeds. I am reluctant to do so as mortgage has quite advantageous terms and effectively I have just started into the period where I pay down the capital (first ten years mainly paying down interest). Can I carryover this mortgage to the new house? ... possibly extending it by borrowing some more money at the current variable rate (apparently still competitive at 1.1% over ECB) in my and partner's name?

Thanks,
Stan

 

[mathepac]

... When selling current house, do I have to 'extinguish' current mortgage, ie pay off remaining amount with sales proceeds. ...

Yes either with the proceeds of the sale or / and some other cash source (personal loan, savings, etc.)

... I am reluctant to do so as mortgage has quite advantageous terms and effectively I have just started into the period where I pay down the capital (first ten years mainly paying down interest). ...

You won't be given a choice AFAIK which is unfortunate I guess.

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