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Buying New home with Equity

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Kbaby
Kbaby Posts: 46 Forumite
in House buying, renting & selling
Hi


We are looking to move to a bigger home. We paid £185,000 for our current home and put down £20,000 Im sure. A home the same as ours went for £195,000 recently. This maybe a silly question so my apologies but, if we wanted to buy a home that was bigger and more expensive how does it work with the mortgage etc with the equity?


Thanks in advance (I don't have a clue about this sort of thing?
Debt £3,100 :(

Comments

  • xylophone
    xylophone Posts: 45,628 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Roughly speaking, you will use the money left after repaying what you owe on your existing mortgage together with what you will borrow on your new mortgage to buy your next property.

    https://www.moneyadviceservice.org.uk/en/articles/money-timeline-when-buying-property-england-wales--n-ireland
  • Dan-Dan
    Dan-Dan Posts: 5,279 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Kbaby wrote: »
    Hi


    We are looking to move to a bigger home. We paid £185,000 for our current home and put down £20,000 Im sure. A home the same as ours went for £195,000 recently. This maybe a silly question so my apologies but, if we wanted to buy a home that was bigger and more expensive how does it work with the mortgage etc with the equity?


    Thanks in advance (I don't have a clue about this sort of thing?

    sale price xxxk = repay mortgage = whats left plus new mortgage amount
    Never, under any circumstances, take a sleeping pill and a laxative on the same night.
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    Dan-Dan wrote: »
    sale price xxxk = repay mortgage = whats left plus new mortgage amount


    Less Estate Agent fees, legal costs and stamp duty.
  • Dan-Dan
    Dan-Dan Posts: 5,279 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    foxy-stoat wrote: »
    Less Estate Agent fees, legal costs and stamp duty.

    Quite, but lets assume OP doesnt think its free to move hey
    Never, under any circumstances, take a sleeping pill and a laxative on the same night.
  • Kbaby
    Kbaby Posts: 46 Forumite
    Thanks for your replies. Much appreciated.
    Debt £3,100 :(
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