Can I afford to move??

Deanoc

Hi everyone,

Hopefully I have posted this in the right place

Me and my wife are thinking about moving house as we now need something bigger than our little 2 bed.

The thing that I can't get my head around, despite the fact of dealing with the entire purchase first time round, is the fees and deposit etc

So we have some money saved which will cover over legal fees and moving fees and any other upfront costs, but we would want to put our 15-20% (depending on sale of our house) deposit and stamp duty out of our equity... All I want to know is is this feasible? I'm sure it is I just can't think straight about it and am worried its not possible hence preventing our move

I'm sure that we can do what I'm asking otherwise everyone would constantly be saving for their next house

Any input would be greatly appreciated

Thanks
Dean

kingstreet

The equity from the sale of your current property becomes your deposit for the next property, yes.

Your solicitor sells your home, pays off your mortgage, settles any costs/fees and then if you wish to do so, you hand over some savings.

He gets the mortgage money from the new lender, adds it all together and pays it to the vendor's solicitor to purchase your new home.

And no, typically if you are moving house you won't need 10% in cash at exchange of contracts. The first buyer in the chain puts in the cash deposit and that passes up the chain, becoming a smaller percentage of the higher purchase prices. The solicitors involved will agree with this in advance, following discussion with their clients.

Deanoc

Thank you.... That's exactly what I thought but just wanted someone to confirm