Can I do this?

ElleWoods

I want to move house but as a single parent living on one income, I can't afford to put any more onto my mortgage (I already have a mort that's 5x my salary as it is). I believe my house is worth £110-£120k. My thinking is that I could look for a house in the same price range and it wouldn't add any more to my mortgage. So for example if I could sell my house for £115k and buy one for £115k, then my mort payments wouldn't change. Am I correct in this thinking? Or am I missing something out?

Thanks,
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Cazza

You will need to take into account Estate Agnets fees, legal fees for buying and selling and any fees associated with the mortgage! If you buy for less than £125,0000, which you said was the plan, then no stamp duty fortunately!

maninthestreet

What would be the point of doing this? Unless you have to move house for reasons of your employment, etc.

ElleWoods

I want to move to be closer to my family, as my parents look after my son 2 days a week and currently this involves a cross-city trek through two rush hours each day. Plus the area I want to move to is better than the one I currently live in and has better schools, so I'm planning for my son's future.

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Tassotti

What type of mortgage have you got. If it is fixed rate, is it portable?

clutton_2

you can pretty well say that if you sell a house for £115,000 and buy another one for £115,000 - you total costs may add up to £10,000.

ElleWoods

Tassotti - my mortgage is fixed rate until April 08, not sure for definite if it's portable but I think it is.

Clutton - why would my costs be £10k???

Thanks,
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Snow_Dog

Agents fees approx 1% to 2% of sale value (approx £1150 to £2300)

Van and man est £500 (all dependant on how much to move though)

Legal fees £2K-£4K (although dependant on many factors)

Mortgage fees ranging from £0 to £500 (plus if you are on fixed now they may make a charge for moving classifying it as early redemption)

Tight_Wad_5

even the worst case scenario does not equate to £10,000....

clutton_2

when you move house you Always need new stuff - curtains, quite often carpets, redecorating - all this costs a lot of money; mortgage companies always have hidden costs for redeeming a mortgage (read your mortgage T&Cs); man with van for full house load for furniture and insurance can cost up to £2000 if you are moving cross country; valuation fees for your new mortgage; mortgage arrangment fees for your new mortgage; post office mail redirection fees; all the costs involved in travelling to the new area to find a new house; connecting up SKY/BB that sort of thing in your new house - i'm sure there are lots more ...............

Poppycat

Legal fees shouldnt be that much, I reckon it will be much less than 10K based on my own experince, probably around 3-4k tops for the whole process, searches, survey, legal, EA fees.