Deposit question for a home mover

rewindrooms

Hello,

I apologise, I am about to ask something incredibly basic here, but unfortunately maths is not my strong suit! I currently own a property and I'm looking to move later this year and just want to work out how much I will need to borrow for the move.

So, I bought my current home for £112,500 with £22,500 deposit, leaving a £90,000 mortgage. I have since paid off around £13,000 of the mortgage and expect to sell my home for around £132,000. I have around £5,000 savings that I could add into the deposit pot.

Now, here's where I get confused! If all of that adds up to around £60,000 and the purchase price of my new home is £240,000 - how much would I need to take out on a new mortgage? My current mortgage has 4 years left to run and can be ported. I'm just confused whether I would take the £60,000 off the total purchase price and then deduct the total of my first mortgage (so £240,000 - £60,000 - £90,000) or would I only deduct what I have left to pay on the current mortgage (eg. £240,000 - £60,000 - £77,000)?

Sorry, I realise I may have explained this very poorly!

Thanks so much for your help.

ACG

Assuming you are porting your current mortgage...

£240,000 purchase price.
- £5,000 savings,
- £55,000 equity in your current house

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£180,000 needed

You already have £77,000 on your current mortgage meaning you need a top up of £103,000.

Assuming you have money set aside for stamp duty and other fees.
If not, then you will need a slightly bigger mortgage.

sitesafe

I'm in similar position as potential first time seller thinking of buying a different house. Went to see a broker after being advised to on here. He reminded me of the additional fees - mine were £2k estate agent/£500 broker/solicitor or conveyancer?/ Stamp duty/?removal costs? My house currently 2 bed semi valued at £155k. I'm thinking of factoring in around £5k+ for these.

rewindrooms

Ah thank you, that is much appreciated. Stupidly, I was taking off the £60,000 deposit and then also taking off the full £90,000 original mortgage - so I'm not in quite as good a position as I thought I was!

ACG

25% equity on a new more expensive home isnt too shabby.