Stamp duty

Locornwall

I am looking to move house and borrow more. I don’t have much savings but have equity in my house, which i was looking will cover a deposit. In terms of paying fees and stamp duty, what are my options? Can I use the mortgage to pay for these and borrow more?

Heam2005

As far as I’m aware these can’t be added to the mortgage

Locornwall

Therefore, Can I use the equity from my house to pay the stamp duty? Will alter the LTV but might not have any other option.

Thrugelmir

You can use the equity in your current property to cover the costs of moving property. Will have enough savings to fund the exchange deposit, allowing for the fact that part of the deposit will be passed up the chain.

kuratowski

Bear in mind you are likely to need some cash upfront, to pay for searches and removals, and possibly mortgage fees.

Locornwall

Can you give me a breakdown example of what fees I’ll need to pay upfront?

MoneyGeoff

Locornwall wrote: »

Can you give me a breakdown example of what fees I’ll need to pay upfront?

No because it varies. The biggest upfront cost is usually the deposit you pay to the vendor which is normally 10% But you can ask your vendor if they will accept less, which most do. Also, the deposit is passed up the chain so if your buyer's deposit is sufficient then you won't need an upfront deposit.

Moving costs will need to be paid upfront as they are arranged by you separately from the conveyancing.

Stamp duty is not paid upfront, your solicitor will settle it at completion provided you have sufficient equity.

Searches and other conveyancing costs may or may not be required upfront. Ask your solicitor.

The mortgage 'deposit' isn't required upfront, your solicitor will settle it at completion provided you have sufficient equity.

The mortgage fees may or may not be required up front. Sometimes you can add them to the mortgage.

Locornwall

Thanks. I don’t get the 10% deposit. Isn’t the deposit just taken from the equity from the sale of my house now.

Typhoon2000

No, you need a deposit to exchange contracts. This is not the same as the deposit to cover the extra over the differance between the purchase price and what your mortgage lender is lending you. ( that can come from equity in your old house on sale).

kingstreet

Typically, your buyer's deposit will pass up the chain with the reducing percentages of the higher values being accepted as 10% will be payable in the event of breach of contract.

Locornwall

Sorry but just to confirm. The buyer of my house, their deposit is passed up the chain, even if there is a difference in 10% deposit amounts? Eg. I sell my house for £350000 and buy a house for £450000. Will the10% I receive from my buyer be sufficient to pass as the deposit for the house I wish to buy?