Moving house after getting a mortgage

danieltanner

Hello All,
My wife and I have been looking to buy a house lately as we have been renting for ages and finally have the guts of a deposit (with some family help). We have viewed a house that we are very interested in but I am naive as to how mortgages work. My main concern is that if we commit to buying a house then we are stuck with it and would not be able to move again (fear of having to get the choice right first time). Am I right to be concerned?

Please consider the following scenario for me:
I buy a house for £100,000 using a high-street mortgage with repayments of £833 per month for 20 years and, hence, a total repayment of £200,000. I am unhappy and decide to move after a very short time, where do I stand financially? For instance I sell this house for £100,000 and want to buy one elsewhere for the same price (£100,000), but I still owe the bank the original £200,000 mortgage. How does this work? Can I transfer the mortgage to a new house (at relatively small cost) or do I have to pay this back before I can consider getting the new house.

Can you suggest some terms or mortgage types I could browse for on the net?

Senior_Paper_Monitor

I have no doubt in saying you would benefit from using a friendly mortgage broker to 'hold your hand', explain the options and implications and get you on the way.

F1rsttimemortgage

As some one who is currently in the middle of taking on their first mortgage I would agree with Stalwart. As this is the biggest debt you will ever take on it is well worth:
- Speak to a broker who can offer you some advice. I did this and was well worth it
- Browse the internet. There is lots of information out there but all worth reading. I think there is a guide on this website.

Hope this was of some help

Thrugelmir

Take your time in finding a property to buy. When you've viewed quite a number of different types in different areas for various prices. You'll know when the right one comes along.

A property becomes a home as that's what you make it once you move in.

Incyder

danieltanner wrote: »

I buy a house for £100,000 using a high-street mortgage with repayments of £833 per month for 20 years and, hence, a total repayment of £200,000. I am unhappy and decide to move after a very short time, where do I stand financially? For instance I sell this house for £100,000 and want to buy one elsewhere for the same price (£100,000), but I still owe the bank the original £200,000 mortgage. How does this work?

You wouldnt owe the bank 200,000 as u only borrowed 100k.
You would only have to repay the 100,000 you originally borrowed.
The 200k you refer to, I think , is what the bank would get out of you if you stayed there and paid them interest plus repaid the capital for the whole 20 year mortgage term.

Every time you sell a house, the mortgage is settled from the sale. That can leave you with a profit if the house has risen in value or a loss if its fallen to a value less than what you borrowed to buy it.

If you wish to then buy a new house you begin a new mortgage again usually. There are portable mortgages but forget I said that for now.