buying a cheaper houses, what happens with the mortgage

[ollywilli]

I am looking at up grading my houses in the sense of size wish, but looking at moving to a different area where the houses are cheaper.
my current houses lest say would be works 144K and my mortgage wis 133K, and I am lookig at buying a house at 127k, what will happen to that bit of my mortgage where is it more then the new house, can I use it for other things, get it in cash, will it be paid off.

I am going to look at talking to a fanincial person, but I would like the advice of some real people first really, with real experiances instrad of people factored by money and probably comission and bonuses

Oli

[woofgang]

The first organisation to talk to is the one you have the current mortgage with! A lot of your questions will depend upon the terns of your existing mortgage
...on a basic setup, you pay off the mortgage by the sale of your house and take out a new mortgage on the new house, size and APR depending on what you want and can get.
years ago we had a transferable mortgage so i know they exist, but we upsized, so there was no excess.
In the current financial climate I can't see a lender allowing you unsecured money but some will let you take out a bigger mortgage than you need (but not more than the house is worth) in order to have a cheaper, but long term, loan. They usually want to know what the money will be spent on and be sure that you and the house are a good risk

[factor-fiction]

The surplus is yours but I think you'll find any small surplus will go on legal and estate agent fees

[buildersmate]

I don't think so.
You will find yourself subject to the 'maximum mortage to property value ratio', which is often around 85%. 85% of £127k is about £108k
The simple answer is that you will probably not be able to take a mortgage of any greater than £108k - now, you don't say how much of the £133k mortgage has been paid off already. If it is less than £108k still owing, THEN any excess comes back to you in cash, subject to payment of redemption and solicitors fees.