We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Buying and Selling - Keeping Equity
yorkie18
Posts: 1,070 Forumite
Good evening all,
Quick question, and apologies if it is a silly one - we are currently looking at selling our first home and upsizing. There will be some equity release of approx. £65,000.
Would it be possible to use some (the majority) as a deposit on the next house and 'withdraw' some so that we have a fund for any repairs etc. that need doing? Or does any equity release have to be used for the deposit and therefore to reduce the mortgage?
Thank you.
Quick question, and apologies if it is a silly one - we are currently looking at selling our first home and upsizing. There will be some equity release of approx. £65,000.
Would it be possible to use some (the majority) as a deposit on the next house and 'withdraw' some so that we have a fund for any repairs etc. that need doing? Or does any equity release have to be used for the deposit and therefore to reduce the mortgage?
Thank you.
Be Kind, Work Hard, Stay Humble, Smile Often, Keep Honest, Stay Loyal, Travel When Possible, Never Stop Learning, Be Thankful Always and Love
0
Comments
-
You can do what you want with the equity so absolutely.
For example - if your house sold for £250k with £100k equity and want to buy a house thats worth £350k, you could use anything from £17,500 (5%) to £100k for the deposit on your next purchase - providing you have the affordability for the mortgage you need to make up the rest.
What you do with that equity is down to you. You need to just ensure the mortgage is affordable and you can borrow what you need.0 -
Thank you so much, that makes sense. I just had in my little worry head that they wouldn't let us if we took out the full mortgage offered to us. Thanks again!Be Kind, Work Hard, Stay Humble, Smile Often, Keep Honest, Stay Loyal, Travel When Possible, Never Stop Learning, Be Thankful Always and Love0
-
Bear in mind LTV !
So if a £50,000 deposit gives you 75%LTV and a good long term deal with £15,000 left to pay for fees and stamp duty, improvements etc0 -
Ah, the perennial confusion between "deposit" (the bit of the price you aren't borrowing) and "deposit" (the 10% at exchange).
One day, more sensible terminology will come into use.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards