Working out deposit

LaylaZ

If I bought my first home for £100k with a mortgage deposit of £20k and then sold it on for £150k. How much of a deposit do I have then? Trying to work out if I'm still supposed to have the same deposit or more for the next house?

Any help gratefully received! Getting confused over something I'm sure probably is very simple.

Mortgage_Mark_2

Well, it seems that you probably have somewhere around £70k equity (assuming that you probably haven't had the original mortgage for that long and therefore haven't paid off too much). How much deposit you put down for your next house is entirely up to you. Generally speaking you'd probably want 15%+ to get a decent rate, but the absolute minimum, depending on your circumstances is 5/10%.

Solsol

Similar to our situation - bought house for £117k in 2009, just sold for £155k
Had £75k left to pay on mortgage which left us with approx £80k equity. We've broken this down as follows:

£67,500 deposit on next house (this worked out at 30% dep.)
£7,500 for fees and stamp duty
£5,000 to be used towards updating new house

Obviously you can use the equity however you wish but we tried to put as much as possible towards the deposit for the new house to give us better interest rates on the mortgage plus less to pay off overall etc.
With our savings we will have around £10k to spend on the house. We worked out that it will cost roughly £15-20k to get the house how we want it but decided to do the essentials straight away with the £10k and then do the rest as and when we can afford it to avoid borrowing more than was necessary