Selling House To Buy A Cheaper One

Firstly: I want to reduce my mortgage considerably.
I have 29 years left of a 30 year mortgage with First Active (bank of england tracker, currently 4.something%).

To save money, I will overpay by £50 per month, and ask if I can do something bi-weekly/monthly (not sure if they allow this?).

I would like to sell my £135,000 (valued) house, and buy an equivelant at £120,000 approximately.

Any ideas of the fees involved? I'm trying to reduce as much as possible to maximise the money made...Any recommendations for online solicitors, etc?

Thanks in advance.

Comments

  • gallygirl
    gallygirl Posts: 17,228
    Name Dropper First Anniversary First Post Mortgage-free Glee!
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    15k won't reduce your mortgage considerably - and EA fees of 2 - 3% will eat into profit (assuming there is any - appears you've not had for long?)

    Best bet financially I would have thought would be to stay where you are - if you're thinking of paying £50 extra on 120k assume you can afford 135k? Look on MS Old Style forum to see where you can save money on shopping, or post an SOA on Debt Free Wannabee board - i can guarantee they'll save you enough to pay the additional mortgage on the 15k.
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    :) Mortgage Balance = £0 :)
    "Do what others won't early in life so you can do what others can't later in life"
  • roswell
    roswell Posts: 2,447 Forumite
    not enough profit really to make the differance your probably after, look at reducing outgoings and expenditure will probably be more worth while.
    If it doesnt pay rent sell it.
    Mortgage - £2,000
    Updated - November 2012
  • humfer
    humfer Posts: 1,779 Forumite
    sinclasc wrote:
    Firstly: I want to reduce my mortgage considerably.
    I have 29 years left of a 30 year mortgage with First Active (bank of england tracker, currently 4.something%).

    To save money, I will overpay by £50 per month, and ask if I can do something bi-weekly/monthly (not sure if they allow this?).

    I would like to sell my £135,000 (valued) house, and buy an equivelant at £120,000 approximately.

    Any ideas of the fees involved? I'm trying to reduce as much as possible to maximise the money made...Any recommendations for online solicitors, etc?

    Thanks in advance.

    You ideally need to overpay by more than £50 a month to make a huge difference to long term interest/term, although anything is worth while. Link below is to a amortisation mortgage site which if you put in your mortgage amount, term and interest rate it will show you exactly how much capital and interest you will pay each month - soon makes you realise that paying that extra bit each more is worthwhile. There's also a feature where you can see what effect making regular or one-off payments does for you. Its US and in dollars but that doesn't matter
    http://www.loanbright.com/edirectlending/calc_amortization.html
  • 15K would not make that much difference, you wouldn't have to worry about stamp duty but make not sell it before the sellers paacks come in, you then have estate agents unless you sell it privately or on houseladder or something. you will have solicitors costs and moving expenses. I would put al that money towards overpaying where you will save perhaps 15K in interest payments. Good luck to you!
  • You definitely need to consider all options! Definitely worth checking out
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