In process of selling property and buying another (UK). Are there any downsides to paying off the mortgage we have now (i.e not waiting for the sale proceeds to come through)? No mortgage is needed for the property we are buying.
I’ve factored in the early redemption charges (which are small and we will have to pay anyway when we complete), but we’d be saving a number of months mortgage payments (depending on when the sales process completes) and not having to pay our conveyancing solicitor to pay off the mortgage.
The money to pay off the mortgage is just sitting earning less interest than the mortgage interest is. Our current mortgage is fixed rate. Could it cause confusion or delay with the release of the deeds? I don’t want to muddy an already stressful process (our buyer’s mortgage offer will expire in 4 weeks and I don’t think we’ll be anywhere close to completing on all the transactions in the chain by then) - but that might turn into another thread later 😳
Are there any downsides anyone can see to this idea please?