Can I pay a mortgage exit fee with money earned from a sale? | Money | guardian.co.uk

Can I pay a mortgage exit fee with money earned from a sale? | Money | guardian.co.uk

Series: Ask the experts: homebuyingPrevious | Next | Index Can I pay a mortgage exit fee with money earned from a sale?


reddit this
Virginia Wallis guardian.co.uk, Wednesday 14 December 2011 06.45 GMT Article history Q I have a five-year fixed-rate mortgage. I'm three years in and pay £1,500 a month. It will cost me £6,000 to get out of this deal. I took out a mortgage of £210,000 on a property worth £240,000 at the time of purchase, but I've recently had three valuations that give an average value of £285,000, which means the loan-to-value (LTV) is now less than 75%.

Can I use some of that profit to pay the exit fee from my current deal, plus any set-up fees on a new mortgage to exploit the improved LTV for a cheaper monthly outgoing?

Is it possible and/or practical to cover the exit costs on, say, a credit card, and negotiate a new mortgage while taking some of the profit out of the sale to cover the expenses incurred? What is the best way to go about this? RR


A I would advise against paying the exit fees with a credit card, as borrowing cash on credit in this way is extremely expensive. Also, you don't need to pay it in advance of paying off the existing mortgage, ......