Want to buy a new house, first time with a mortgage...

Joanna_jinxed

Hi all!

So, here's the situation. My husband and I own a house outright worth between approximately 200-210k, which be bought with an inheritance from my husband's late uncle. It was a new build, so is only 3 years old and is in good nick, apart from some cosmetic stuff (like a mark on the paint in the hallway where we bumped it moving the bed upstairs!)

Anyway. We're looking to move in to one of two new builds that are being built out in the countryside near to us (I really want to be out in the sticks!) and we are wanting to use our current property in part exchange. The property we have our eye on is £319995. As we didn't need a mortgage the first time around, the whole process is baffling me! We have a smallish loan we took out a year ago, and we were wondering if it would be possible to use some of the equity from our current property to pay this off, thus leaving us debt free (apart from the potential mortgage, obviously) then use the remainder of whatever the house builders offer as part exchange as deposit against the new property. Does that make sense? It that possible?

Any advice much appreciated!

kingstreet

Yes. It's possible.

You apply for a mortgage which is larger by the amount needed to repay the loan.

Joanna_jinxed

Thanks! Our LTV would be about 45%, so we're hoping to get a good deal *crosses fingers*

jaybeetoo

You might sell your current property for more money than you'd get from part-exchanging it.