Selling property with a mortgage

spongebob89

I have a basic question regarding a mortgage. I am wondering that if sell my house, would I then just owe the banks back the money that they loaned me and not any of the interest ?

For example:

I borrow €150,000
Deposit €50,000

Property cost €200,000

Sell 5 years later at say €200,000. Do I then just owe the bank back the €150,000 ? then able to use my €50,000 remainder for new mortgage ?

ifeelstupid

If you are on a variable rate mortgage, you can request a redemption figure from the lender and this is the amount you will owe on a particular date.
If you have paid down the mortgage for 5 years you should owe less than the original borrowings - this will not be a guge reduction as typically repayments are mostly interest for the first half of the term.
If you are on a fixed rate the lender may charge a penalty to break the fixed rate term although you may be able to negotiate on this if you will be taking a new mortgage.
You should get the advice of a professional mortgage broker to work out the option that is best suited to you.

SteM

Fill in your details here

https://www.drcalculator.com/mortgage/ie/

and look at the Annual Table tab to give yourself an idea of what you can expect to owe the bank after 5 years.

Note ifeelstupid's advice about fixed vs variable and if you're planning to sell after 5 years ensure you're not fixed during that time period.

spongebob89

SteM wrote: »

Fill in your details here

https://www.drcalculator.com/mortgage/ie/

and look at the Annual Table tab to give yourself an idea of what you can expect to owe the bank after 5 years.

Note ifeelstupid's advice about fixed vs variable and if you're planning to sell after 5 years ensure you're not fixed during that time period.

Very helpful.. Thank you

Victor

spongebob89 wrote: »

I have a basic question regarding a mortgage. I am wondering that if sell my house, would I then just owe the banks back the money that they loaned me and not any of the interest ?

If you have been making the required mortgage payments, this should include all the interest. If you haven't made all the payments, at least some interest will be owed.

Sell 5 years later at say €200,000.

Note that over a 5 year period the value of the property will have varied - up or down.

Do I then just owe the bank back the €150,000 ?

Remember that if you have made payments, this should have dropped. However, it won't be linear. In paying off the mortgage, early payments are mostly interest.

then able to use my €50,000 remainder for new mortgage ?

Hopefully this will have increased.

spongebob89

Victor wrote: »

If you have been making the required mortgage payments, this should include all the interest. If you haven't made all the payments, at least some interest will be owed.

Note that over a 5 year period the value of the property will have varied - up or down.

Remember that if you have made payments, this should have dropped. However, it won't be linear. In paying off the mortgage, early payments are mostly interest.

Hopefully this will have increased.

Thanks for taking the time to reply. Very helpful.