Buying a new house!

mattwenn

Hello,

I'm looking to move home soon.

I currently have a mortgage outstanding of £61000, and my flat is worth £150000.

I have been offered a mortgage in principal with my new bank account of £197000 (way too much!).

I'm looking to spend about £210000 max on my next house..... but will need to pay stamp, solicitor etc.

Can the stamp and fees come out of the 'profit' on my first mortgage? How does it all work!

I basically want to move house, therefore upping the size of my mortgage. We have no savings but it is possible to get all costs from the money made in the first sale?

Cheers!

herbiesjp

What you simply do is the following assuming the figures are correct

Sell at £150k and clear the mortgage of £61k

This leaves you with £89k

Instead of putting all that down as a deposit - set aside say £10k (you'll know all the expenses you will incur) and then put £79k as the deposit

mattwenn

That was quick!

I was hoping it would be that simple :-)

Thanks.

herbiesjp

You are very welcome!

emmaHarris_2

Of course we are supporting Shelter but DO NOT gain at all:)

Its good advice about setting aside the moneis towards the costs. Just a thought though within the £10k put to one side...maybe £10 to help shelter help the homeless? http://england.shelter.org.uk/ If I am out of line here...I am sure I know some that will tell me I can always delete this! Just a silly thought.

homer_j_3

emmaHarris wrote:

Of course we are supporting Shelter but DO NOT gain at all:)

Its good advice about setting aside the moneis towards the costs. Just a thought though within the £10k put to one side...maybe £10 to help shelter help the homeless? http://england.shelter.org.uk/ If I am out of line here...I am sure I know some that will tell me I can always delete this! Just a silly thought.

There is a seperate charity thread http://forums.moneysavingexpert.com/forumdisplay.html?f=99

not sure if you are allowed with this or not but have a look there and read martins sticky,

emmaHarris_2

Thanks Homer. I will. It just seemed such good advice and I had in my head. I will delete if required. I hadn't seen the charity thread but will take a look:)