probably very simple mortgage question for moving house...

Crowdpleaser

I'm sorry for asking but I'm very very New to mortgages...

Dh bought his house 10 years ago for £75000 over 25 years. There is £31000 left to pay. We married last year and the house is still in his name solely.

I have inherited 35k recently which is sitting in a fixed term bond.

We want to move house using his equity and my savings. But I just dont understand how mortgages work and how much we will have to spend? Our house is currently worth 130k ish.

Basicalyy what I'm asking is how much we will have to put down and how muchmortgage we would need on a 180k ish property? How does it work with current mortgage, does that go and we srart a new one or do we extend current one? Sorry probablely really simple questions...

Thanks!

ValHaller

If you pay off the £31,000, the current mortgage will be discharged. If you do that, make sure that you get a solicitor to pay off the mortgage and get your name put on the deeds. And you will have £4,000 left over, but a small solicitor bill to pay.

If the move is soon, then keep your cash saved. When you sell, the money for the house pays off the mortgage and your OH will get [STRIKE]£44,000[/STRIKE] £99.000. This with your £35,000 will give you [STRIKE]£79,000[/STRIKE] £134,000 towards your next house.

You could consider moving into rented for 6 months - this would make you effectively a First Time Buyer and give you some advantages.

Remember that mortgages are on properties and each new property requires a new mortgage, even if it is a so called portable mortgage where you can keep a good rate.

ACG

When you sell your property the solicitors will take some of the money to pay off the mortgage and estate agents and their fees. The remainder will be passed on to you.
The remainder can be used in the whole for your deposit or part of it for the new property, you can also add your money to that if you wish in order to get a lower mortgage.

ShALLaX

ValHaller wrote: »

If the move is soon, then keep your cash saved. When you sell, the money for the house pays off the mortgage and your OH will get £44,000. This with your £35,000 will give you £79,000 towards your next house.

Given that the house is estimated to be worth £130k now, I'd expect the sale to raise about £99,000 after the remaining £31,000 is paid off - not £44,000 as you have stated (presumably you took the original house value into consideration when making this calculation).

This'll give you £134k in total to play with. Take off about £5..8k for immediate moving expenses, then another £5k for post-move-in expenses and you'll be left with about £122k, so you'll be looking at a mortgage of about £60..70k, depending on how frugal you can be when you move.

ValHaller

ShALLaX wrote: »

Given that the house is estimated to be worth £130k now, I'd expect the sale to raise about £99,000 after the remaining £31,000 is paid off - not £44,000 as you have stated (presumably you took the original house value into consideration when making this calculation).

This'll give you £134k in total to play with. Take off about £5..8k for immediate moving expenses, then another £5k for post-move-in expenses and you'll be left with about £122k, so you'll be looking at a mortgage of about £60..70k, depending on how frugal you can be when you move.

Agree. Missed the current value.

Crowdpleaser

Thank you so much, you have all been very helpful