Part exchange.

girl28

Hi everyone. I am a home owner but i bought my house 7 years ago when i was 21 and it happened so quick it's all a blur now.
We are wanting to move after our wedding in April and are very interested in getting a brand new house. We bought our house for £65,000 and at the moment they seem to be up for around £95,000. The house we like the look of is £149,950.
If we part exchange do you think our monthly payments would go up a lot? We currently pay £430 a month on fixed rate.

Many thanks for your help.

g_attrill

Part exchanging a house is a bit like part exchanging a car - you might get a decent price for your house but have no negotiating space on the new one, or you will get offered a low price for yours but be able to do a deal on the new one.

I wouldn't get too attached to the new house you've seen - there are plenty around and unless that development is selling fast I'm sure there will be something nice available when you have a buyer.

On the costs - if you can port your mortgage the payment will increase according to how much extra you need to borrow. If you post how much much you are borrowing, the % rate and if you have any deposit to add somebody can work it out for you.

TrickyDicky

It depends on many factors

How would you fund the difference? do you have some savings or would you take out an extra loan.
How big is your current mortgage? what type of morgage is it?
What is your current interest rate?
how much do you earn?

If you took out the difference as an increase in your mortgage (assuming repayment at 5% keeping within an origional term of 25 years) it will cost you an extra £386 a month

[Deleted User]

Part exchanging is very unlikely to give you a good price. Much better to sell it.

puppychick79

We have recently part exchanged on our house, we had it valued at £84,000 and the people we were part exchnging with (a building company) offered us £79,000 so yes we did get below market value.

We had to make the decision either take their offer and move or wait and see if can find a buyer we decided to take their offer which some may say silly but I wanted their house and they would take mine as seen, needed new windows and tiling to be done etc so saved any negotations.