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second time buying
robbo07
Posts: 2 Newbie
could someone please enlighten me. How does buying a next house work? for example: present mortgage is 100,000 with about 20 years left which was 100% borrowed. new home will cost, say 200,000 and present house sells for 160,000. do we only have to get mortgage increased by 40,000????
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Comments
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Basically yes. You will need to pay other costs of course stamp duty, legals EAs fees survey, early redemption fee perhaps etc say £5,000. What's more you will be only borrowing 70% Loan to value so will be eligible for the best rates and deals.0
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Yes, you can do. If the house needs a lot doing to it you can borrow a higher amount and release some of your equity to cover the work (or anything else you want TBH). I would suggest having at least a 10% deposit on your new house as getting a mortgage for more than 90% of property value will stop you benefiting from some of the best rates etc.
Good Luck!0
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