Using equity for fees....?

Shashy

Morning all

Looking for some help please....

I'm planning to move house next year, and this will be my first move. Our first house (which we're currently in) was a new build, so the process of buying it was relatively simple.

My question is: when you sell a house, is it common to use some of the equity to support the moving fees/stamp duty on the next purchase?

i.e. if we come away with £70k equity, can we simply tell the new mortgage provider that we wish to put down a £60k deposit and take £10k as 'cash'.

Hope that makes sense - appreciate any responses.

S

elverson

You can, it just means your LTV % on the next mortgage will be lower with the obvious implications for the monthly payment / interest rate.

saajan_12

elverson wrote: »

You can, it just means your LTV % on the next mortgage will be lower with the obvious implications for the monthly payment / interest rate.

smaller deposit -> larger mortgage, fixed property value -> higher LTV surely?

bertiewhite

When I sold/bought my last house, my solicitor's bill was worked out clearly showing that the estate agents fees & solicitors fees were covered by equity.

ReadingTim

Of course you could, and use the £10k on anything you like - holiday, rennovations to the new place, or simply a whirlwind of booze, drugs and hookers....anything you like really...

The downsides are that you might get a poorer mortgage deal on the next place due to a higher LTV, or simply end up with a cheaper/not as nice place as your overall budget could allow.

elverson

saajan_12 wrote: »

smaller deposit -> larger mortgage, fixed property value -> higher LTV surely?

Sorry, that's what I meant to say.