Equity amount

spoll_2

We're planning on moving home and will be increasing our mortage (with the same bank) - is the amount of equity the difference between what we sell our property for and the outstanding balance?

i.e. if we needed a 25% deposit for the new property we could use this equity and then only need to find the balance?

Thanks

BitterAndTwisted

spoll wrote: »

We're planning on moving home and will be increasing our mortgage (with the same bank) - is the amount of equity the difference between what we sell our property for and the outstanding balance? Yes, it is.

i.e. if we needed a 25% deposit for the new property we could use this equity and then only need to find the balance? Yes, that's right.

Thanks

Unless your employment situation is more solid than the Rock of Gibraltar I'd advise you to think very hard about what impact this extra commitment may have.

theartfullodger

spoll wrote: »

We're planning on moving home and will be increasing our mortage (with the same bank) - is the amount of equity the difference between what we sell our property for and the outstanding balance?

Yes, less expenses of selling, moving, new stuff for new place, etc etc... Has your bank agreed (in writing) to the increase???

i.e. if we needed a 25% deposit for the new property we could use this equity and then only need to find the balance?

Thanks

And quite a bit more for a rainy day. You only need a family crisis, illness, loss of job, big problem with the house, birth of kids and your finances are suddenly rather different. Be careful!!