Thinking about moving but not got a clue what to do!

mcyates_2

I moved into my current house a year ago, I was a first time buyer and I'm on a fixed mortgage for another year. My circumstances have changed and I was to move with my fianc!e back up to Newcastle from Middlesbrough. I'm just wondering what the process is like as I will be in a chain as I'll have to sell my house first before I can move and I'm wondering how much of a pain this will be?

I had a 25k deposit on my current house, so when I sell, where does the money go, does whatever i've made on the property (including my deposit) go into my bank (that's if i've made any). I'm just confused, think I need to go to a estate agent and ask!!

But if anyone knows, what the process is, then that help would be much appreciated, thanks.

Michael

kingstreet

When you sell the property, your solicitor pays off the mortgage with the sale proceeds. Any residual funds will be paid to you.

If you have a fixed rate, there will almost certainly be a penalty to pay to repay the mortgage early. This will form part of the redemption figure the lender supplies to your solicitor.

If you plan to buy onward, the funds left over after repaying the mortgage will normally form the deposit for your next property. If you take out a new mortgage with the current lender, you may be able to "port" the fix to the first part of the new mortgage, avoiding the early repayment penalty (ERP). If the new mortgage is smaller than the old one, you'd pay part of the ERP.

You'll have estate agency and legal fees to pay on the sale and mortgage, survey and legal fees to pay on the purchase. If you go above £125,000 for your new purchase, stamp duty of 1% will also be payable. This is paid to your solicitor at completion along with your sale costs, or comes out of the equity in your current home.