Did you know that the fastest way to sell a mortgaged property is to remortgage it? The seller agrees with the buyer to take over the existing loan on a particular property to pay off the remaining obligation. However, the bank must also agree to this.
When you say underwriting a mortgage
In simple terms, we could also say transfer the mortgage to another person. This is a relatively complex process where the obligation to repay the mortgage loan passes to someone else. This most often happens when you sell or buy a mortgaged property.
How to successfully take out a mortgage?
The transfer of a mortgage to another person is only possible with the consent of all three parties, i.e. the seller, the buyer and the bank. The latter does not usually require a new appraisal of the property when taking over the loan, but will only verify the new client’s ability to repay the obligation.
When the bank gives its approval, the terms of the loan remain the same as the previous client’s, with an addendum added to the existing contract. The original maturity, fixation period and interest rate remain.