@number2atmolyneux — 66x breakout

Loading video…

You’ve still got £150,000 left on your mortgage...

@number2atmolyneux

6.5K followers · usually 716 views a post

Views

44.1K

Likes

207

Comments

Why it worked

The content addresses a common financial concern for homeowners in a clear, step-by-step manner using simplified examples and relatable visuals, making complex information accessible and reassuring.

Summary

This slideshow explains how selling a house with an existing mortgage works. It clarifies that the mortgage is typically repaid from the sale proceeds, and outlines the simplified calculation of remaining equity after costs, while also mentioning potential additional expenses and how equity can be used for a subsequent purchase.

Structure

1Introduction to selling with an outstanding mortgage
2Explanation of how the mortgage is repaid
3Simplified financial example
4Consideration of additional costs
5Impact on buying a new property
6Summary of the process

On-screen text

You’ve still got £150,000 left on your mortgage... So HOW can you sell your house?! 🏡 🔑 🚪 You don’t usually have to finish paying your mortgage yourself before you’re allowed to sell. Instead, your existing mortgage is normally repaid as part of the sale. Imagine: Your house sells for £250,000 Your outstanding mortgage is £150,000 On completion, your solicitor/ conveyancer deals with repaying the mortgage from the sale proceeds. Very simplified: £250,000 sale price - £150,000 mortgage = £100,000 left But don’t assume £100,000 goes straight into your bank... There may be other amounts to account for, such as: • estate agent fees • solicitor/conveyancer costs • an early repayment charge, if applicable • other amounts connected with the transaction And if you’re buying another house at the same time... some of the money left from your sale may be used towards the deposit/equity for your next property. The beginner version: Sell house → sale money arrives → existing mortgage gets repaid → costs are dealt with → remaining equity is yours. And if you’re moving? That equity can potentially help buy the next house. 🏡 ➡️

Original caption

What happens if you want to sell your house but you’ve still got £150,000 left on the mortgage? Do you somehow have to find £150,000 before you’re allowed to move? Normally, no. When a mortgaged property is sold, your solicitor or conveyancer will generally arrange for the existing mortgage to be repaid from the sale proceeds on completion. For a very simplified example, imagine you sell your home for £250,000 and have £150,000 remaining on your mortgage. The £150,000 mortgage would need to be repaid, leaving £100,000 before taking account of other relevant costs or amounts due. That doesn’t necessarily mean £100,000 lands in your bank account. There may be estate agent fees, conveyancing costs, potentially an early repayment charge depending on your mortgage, and other transaction costs to account for. If you’re selling one home and buying another, some or all of the equity released from your existing property might also be used towards purchasing the next one. Obviously individual transactions can be more complicated, but the first-time homeowner version is: You don’t normally pay off your entire mortgage from your savings before selling. It’s usually repaid from the money generated by the sale. #SellingAHouse #MortgageUK #HomeownerUK #PropertyUK #creatorsearchinsights