Second time buyers 'deposit'

kriss_boy

We bought an 85K house last year with a 5% deposit. We've since paid off a further 2K.

The house has now been valued at 90K (We rennovated the entire house and garden for a couple of grand and appear to have avoided the slump somewhat).

We are now on better salaries and fancy snapping up a bargain of a 2 or 3 bed place for around 120/130K.

The problem is that supposing we only got 85K for our place then we are essentially only taking 7K of equity to the new house. This is less that the deposit the lenders would otherwise offer?

Do we essentially have to build up the equivalent of 20% deposit like FTBs to move to a bigger place?

Also, will we lose the 1% lloyds tsb are currently giving us on our current mortgage?

Regards

Dan_1976

You will probably need at least 10% depending on your credit score and situation.

You may be able to port the current mortgage over, I would get some advice.

_Andy_

Kriss - as Dan said you need at least 10% of the new property value.
What you haven't factored in your figures are things like legal fees (for the sale and purchase), valuation fee, estate agents fees, moving costs.
Also your sums don't take into account you may well not get the full valuation figure if you sell.
Basic problem is at the moment you don't have sufficient funds to do what you'd like.

beecher

You need to build up a bigger deposit - since you're only paying 1% on your mortgage and are on better salaries than you were, then save as much as you possibly can while you've got the chance. You need at least 12k, though your lender may require the LTV to be lower than 90% in order to allow you to port.