What Happens to Interest When You Sell a House?
If you sell, you will be left with £300,000 to buy your new home. You could use the £300,000 as the deposit to purchase somewhere for £600,000 with a 50% LTV mortgage. Alternatively you could use the £300,000 to buy a new home and an investment property.
When do you have to pay interest on a mortgage?
When you sell a home, you will also have to pay interest on your outstanding mortgage balance from the date of your last payment until the time of the sale. You are also liable for property taxes up until the day you sell the home. At times, seller’s have additional expenses.
