Moving Home - Keeping some equity for renovation

Strum88

Hi all,

Im looking for some help regarding keeping some equity when moving house, and if it is possible?

My partner and i have accepted an offer on our house and are looking at couple for us to purchase this week.

One needs a lot of renovation, and we were wondering if it is possible to keep some of the equity we will have from our house sale, to renovate the new house?

If we purchase the house at its list price for example, we will have a 22% deposit using equity from our house sale.

Could we keep around 8k to renovate the house, leaving us with around a 17% deposit?

Thanks in advance

Contemptuous

As long as you can afford to borrow the rest, then yes, of course you can.

dimbo61

Moving home is expensive and you need to sort a mortgage.
What is the LTV of the mortgage you are getting ?
85% or 80%?
If you could save or borrow from the Bank of Mum and Dad you might be able to put down 25%.and get a better rate !

AnotherJoe

Strum88 wrote: »

Could we keep around 8k to renovate the house, leaving us with around a 17% deposit?

It's up to you todecide what deposit you wish to make, the lender to decide if that is acceptable, and also what interest rate you'll get depending upon the LTV that works out at. You can balance all these factors together with length of loan to work out how much cash you'll have and how much the monthly payments will be.

Strum88

Great thanks for your replies.

Initially we were looking at 15% deposit on a more expensive property, and had an offer in principle based on that. So were hoping if we can keep some of the equity when we move, we can go for a cheaper property and 'do it up'

Ill contact our current mortgage company and talk it through with them as well.

Thanks for your help