Paying off mortgage to gain bigger house

alamaya

Hi
Sorry if i sound thick here :P

I have a property i brought for 113,000. Not really dented the mortgage yet after 6 years.
I would in a good 10 years time like a bigger house on the estate that retail about 200,000 atm.

Seeing as how me and hubby can only get a mortgage for £100k ish.

Do i pay off my current mortgage. Then use the money from the sale of house one add it to another £100k mortgage to be able to buy new house at 200k.

Is that the only way forward?

I know this is far in advance lol but i like to plan ahead :P

michelle2008

You should have built up a good amount of equity in ten years time. But it is only the equity you can put to the new house not the full sale proceeds of the house.

As you say it is very far in advance - your earnings will probably be very different - as will house prices.

In your position I would overpay the mortgage if I could to maximise the equity in the house (or save if you can get a better rate).

Thrugelmir

Start by reviewing you budget. Cut out any wasteful expenditure. Use the money to overpay the mortgage.

The more you pay. The less interest you'll pay. The quicker the debt owed will reduce.