Moved home

jatbaws

Hi looking for some advice I just moved home my old mortgage was£90000 and my new home I needed a mortgage of £50000 when I was on the phone to the mortgage firm they asked all the questions like how are you going to pay of your loans and I said with the excess and also said would need money to do up the house so I thought any money left over would be paid in to my bank account and it has not what wave I done wrong?

kingstreet

What did you assume would happen to the current £90,000 mortgage?

Did you assume it would be repaid by the solicitor from the sale proceeds, as it will be?

Do you really need a £140,000 mortgage which you thought would be your existing £90,000 mortgage and another for £50,000?

When you sell, your mortgage is repaid and you take out a new mortgage for the new amount you need to borrow to purchase your new home.

Please clarify.

jatbaws

Sorry my mortgage was portable £90000 was to be payed of and a new £50000 mortgage taken out in the new home

Sold old home for£1835000 £90000 mortgage left on it was to be payed off.the mortgage was a portable mortgage so took out a £50000 mortgage on the new home was wondering as the mortgage completed asked how will you pay of you loans and bank overdrafts and such like I said would use the excess to clear the debt and use money to do up house.

kingstreet

So, you sold for £1.835 million, or £183,500?

The £90,000 existing mortgage was repaid?

You ported the rate from the old mortgage to a new £50,000 mortgage with the same lender?

What was the purchase price of the new property?

When did this take place?

In general, the solicitor handling your sale would take the excess funds (after repaying the mortgage and other fees/costs) and use them for the purchase of the next property, along with any mortgage.

You would need to set the amount of the new mortgage in line with the excess funds to be able to purchase the new property and have money left over for your own purposes. That money would be paid to you by your solicitor, unless the lender insisted the solicitor settle the commitments you promised to repay.

ViolaLass

Have you asked your solicitor where your money is?

lonestarfan

How much did you pay for the new property?

jatbaws

Thanks kingstreet


Sold for £183500 outstanding balance for mortgage was £90000
Purchase price new property £95000 ported over same rate to new £50000 mortgage.it all happen in the last week but on The phone to the mortgage completer I said I needed money to pay of my debts and some home improvements I thought I would get the £50000 to settle my debt and home improvements have I done it wrong £10000 loans,credit cards bank overdraft,£15000 for home improvements

ViolaLass

Again, have you asked your solicitor where your money is?

lonestarfan

The way I calculate this is that you should be given back £48500.
You sold for £185000 and you owed £90000 which means you had £93500 to put down on new house.
But you used a £50000 mortage to buy it so you only had to use £45000 of your £93500.
That leaves you with £48500.
I don't know which mortgage company you are using and if their policy is to pay the loans off but you should get £48500 less the loans if that's what they do.
Less whatever your estate agent and solicitor fees were too maybe?
As violla says -have you asked your solicitor as maybe they are slow sending out a completion statement.

jatbaws

Thanks lonestar that's the way I worked it out my be the check just not cleared yet