I have 25 year tracker mortgage for six apartments, with 10 years paid off, i.e. all payments made on time. My question is: if I sell one apartment and redeem mortgage on this one only, will my bank allow me to continue paying mortgage on the remaining five apartments under existing tracker terms, or will it deem the event a default and seek to put me on to variable rate mortgage?
Tracker Mortgage for multiple units
- Thread starter Granda
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Brendan Burgess
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You have a right to repay a variable mortgage in part or in whole at any time without penalty.
Have you six separate mortgages or one mortgage on 6 properties?
I presume it's one mortgage for 6 properties.
You need the permission of the lender to sell. If you are selling a property and using the full proceeds to reduce the mortgage, I can't see the lender objecting. They should be delighted to have the mortgage reduced.
However, if you want to sell a property and retain the proceeds or most of the proceeds, they will probably refuse.
Brendan
Have you six separate mortgages or one mortgage on 6 properties?
I presume it's one mortgage for 6 properties.
You need the permission of the lender to sell. If you are selling a property and using the full proceeds to reduce the mortgage, I can't see the lender objecting. They should be delighted to have the mortgage reduced.
However, if you want to sell a property and retain the proceeds or most of the proceeds, they will probably refuse.
Brendan