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Buying a new house, extending mortgage and deposit
MrsManda
Posts: 4,457 Forumite
Hi, I wasn't sure if this should go here or in house buying so please move if it's in the wrong place.
If you put your house up for sale is your deposit when working out the LTV for a mortgage on a new house, the amount you expect your house to sell for minus any existing mortgage? Or do you need a cash deposit?
If you put your house up for sale is your deposit when working out the LTV for a mortgage on a new house, the amount you expect your house to sell for minus any existing mortgage? Or do you need a cash deposit?
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Comments
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If and when your existing property sells the money left over from the sale will be your deposit. This is in effect cash anyway.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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The former. After all, but for the speed of the transaction - when selling and buying in one go - the difference could become cash in your hands/account...
Adjust for fees and costs, too, of course.Act in haste, repent at leisure.
dunstonh wrote:Its a serious financial transaction and one of the biggest things you will ever buy. So, stop treating it like buying an ipod.0 -
So if you need to sell your house in order to buy another, when you're working out what kind of price range you are looking to buy do you take into consideration the valuation of the house you're selling minus the mortgage when you are getting a Mortgage In Principle?
Or can you not get a MIP until you've sold your first house?
(Obviously you need to leave some leeway in case the house you are selling doesn't sell for as much as you expect/legal costs become higher than expected).
Am I just making this overcomplicated?0
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