Advice needed

twist-and-shout

Hi there,

Me and my partner secured a 100% mortgage in march 08, I was pregnant at the time and we needed to find somewhere quickly. Anyway found a perfect 2 bedroom house which has been great, but we really do need a bigger house now with a toddler running around and we would like another baby but have only paid off a small percentage of the mortgage. How would we go about getting a higher mortgage on a new house? Would the bank lend us an additional amount and if so would i need a deposit on the whole of the new mortgage amount or just the additional borrowing amount?

Thanks in advance

_Andy_

You'll need at least 10% deposit (of the new purchase price), plus legal fees, estate agency fees, stamp duty (if applicable), moving costs, valuation fee etc.

Cannon_Fodder

If you move every two years you will waste tens of thousands of pounds every decade - not very MSE!

You are likely to be in negative equity, or at best break-even. You would need equity or cash to form the deposit for the next purchase. In the absence of equity, this means cash is going to need to be the bulk or all of the deposit.

Aim for 10% of the purchase price of the new place. Also save up £5k for fees/costs.

twist-and-shout

We are not planning on moving every two years, next home with be the final one hopefully. Our house now isnt very big, not got a garden so not ideal for a toddler.
We got a good deal for our house as the previously owners wanted a quick sale, so we were hoping that we could break even with the sale, we also have some money put away approx £4500. We got the mortgage in 2008 and since then my partner has had a couple of pay rises so we can start to save another £500 a month. We know the move will probably not be possible for another year just wanted to know where we stood.

If i sold my house for £115,000 and broke even then wanted to buy a house for £150,000
When you say we would need min 10% of purchace price (sorry if im about to sound thick) do you mean

10% of the £150,000 or 10% of the £35,000.

Thanks again

Wutang_2

Yep, 10% of purchase price (currently).

Might be all different in a year or two!

_Andy_

twist-and-shout wrote: »

10% of the £150,000 or 10% of the £35,000.

10% of £150k + the fees I mentioned. I.e. you'll need to keep saving for some time.