Second house general help

Dowsett

Hi,

We are looking to move house to our second house, a bigger family home.

We have an independant mortgage adviser coming to our home on tuesday for a brief meeting.

Its been a few years since we bought our first house - about 6 years, so ive forgotten all the ins and outs and trying to read up and get back in to things.

A question ive been wondering for a while is regarding buying a new house. Ive read a little bit about it on other sites but struggling to understand, so hoping someone can offer a little bit of advice towards our situation.

Would we need a deposit or can we just use the sale of our house to put towards the second house including all fees etc?

I know its gonna be a bit of a grey area as we dont know how mcuh we can borrow yet and haen't seen a house or anything.

I (think) our house was £135,000 when bought in '08. i think about 115k outstanding on the mortgage. If we sell for, lets say 150k - thats 35k left over. Can this be used to pay for fees, stamp duty, and money towards a new mortgage?

Hope this makes sense and that somebody can offer a little bit of advice - go easy, i feel like a newbie again!

Thanks

LisaLou1982

Hi

The equity within your house can be used to pay for the deposit, stamp duty and other fees, provided of course that there is enough money!

It might be worth basing your figures on a lower amount of equity so that you arent too tight with finances if you have no other means of paying your fees etc

G_M

1) your 'equity' is the current value of your current property, less the outstanding balance of any mortgage you have

2) your borrowing potential is based on your salary. see an independant mortgage adviser

3) Moving costs including estate agent, legals, stamp duty, 'doing-up' = £7K - £10K ????

You can afford 1+2-3

Solsol

We're currently doing exactly this I'll give you a quick breakdown of our finances:
Bought house for £117,000 in 2009
Sold for £155,000 and buying next house for £225,000
£75,000 left on mortgage which leaves £80,000 equity.
We are using £67,500 as deposit for next house, £7,500 to cover estate agents fees, solicitors fees and stamp duty which leaves approx £5,000 for renovations and decorating etc

We've also got £5,000 in savings to add towards moving costs and decorating etc

Hope this helps!

Dowsett

Solsol wrote: »

We're currently doing exactly this I'll give you a quick breakdown of our finances:
Bought house for £117,000 in 2009
Sold for £155,000 and buying next house for £225,000
£75,000 left on mortgage which leaves £80,000 equity.
We are using £67,500 as deposit for next house, £7,500 to cover estate agents fees, solicitors fees and stamp duty which leaves approx £5,000 for renovations and decorating etc

We've also got £5,000 in savings to add towards moving costs and decorating etc

Hope this helps!

Thanks. You managed to get a good price then! A lot of equity in a few years.

We have an adviser coming on Tuesday.

Is the best way of getting a valuation through estate agents? or is there a more acurate way to determine the value of the property?

Thanks for everyone elses reply.