Probably silly question re mortgage and buying new house.

Willowpop

Hi folks!
I've gotten myself all confused and wondered if you could help.

I own a flat which I'm looking to sell so I can buy something somewhere else.

My flat is worth £200k and I have £100k outstanding on my mortgage.
If I buy a new place for £160k, do I need a £160k mortgage and I put down a £100k deposit (ie the equity), or would I just need a £60k mortgage?

I know I'll not have exactly those figures due to fees, costs etc, but I thought I'd keep it simple with round numbers etc.

I've only ever bought the flat that I have currently, so never done this before.

Hope that makes sense!

amnblog

£100,000 from your sale plus £60,000 mortgage = £160,000

tightasagnats

Just to be clear how it works.....you sell your flat and the money from the buyers bank will go to to settle the current mortgage, and the remainder £100,000 will be held in an account which is then used to pay the seller of your new property. You raise a mortgage for the remaining amount, which as pointed out above, would be £60,000.

There are many good brokers on this site, have a look at their posts and ask any questions you have. They can be very helpful and if you struggle with figures and these kinds of details it can be invaluable to have a broker help you out who people rate.

Willowpop

Smashing, thanks.
It's early days for us and we are working out at the o if we can afford to move...we have some credit card debts that we would need to pay off etc, but it's good to know how the maths works as we go along!