First time selling

demeggy

Hi folks,
Hope everyone's staying safe and well. We bought our first house back in 2018, and we're looking to move again next year.
I've got a rather stupid question about my mortgage though and looking for a new property;
I'm currently on a fixed term rate with my current provider, so when I leave, I'll either by staying with them or switching lenders.
Does the fact I already have a mortgage and both wife and I have had substantial payrises since our initial mortgage was taken out make a difference for future applications? Are we at less risk than we were before based on our continued, problem-free mortgage repayments? We've got a couple of interest free CC balances were paying off quite rapidly, so these will either by fairly low if not completely paid off (depends on what other areas we need to make savings/investments into for selling the current property).
I'm a little confused about the profit margin/deposit requirements for a new purchase too (again, really basic stuff I'm just not getting my head around, so any advice at all would be appreciated).
Happy to go into more detail if that would help any assistance.
Thanks
MrC

Unicorn_cottage

When does your current mortgage end?
If you earn more you should be able to borrow more.
In terms of a deposit well you want to have as much as possible or certainly enough to get you into the lowest ltv brackets.

demeggy

The fixed term rate ends Oct 2021, otherwise it's a 25 year loan. Daft question, but in terms of the process, can we utilise any profit from the sale of the current property for the mortgage deposit on the new one?

Unicorn_cottage

Yes of course. If you are getting a new product with your lender or remortgaging you will need to choose a mortgage option wisely especially as you are looking to move next year. What is the reason for moving so quickly if you don't mind me asking?

demeggy

Just after we moved in, we both got new jobs at the city we'd left behind. it's only 45 mins commute each way, but it's enough to make us want to up sticks and head back again.

demeggy

Thanks for your help by the way!

dimbo61

So October 2021 is still 18 months away so plenty of time to find the perfect home in the city you both work in.
Pay down debt, try not to take on new debt ( so no new cars )
Build up savings to help pay for searches, legals, survey mortgage fee etc.
You can use the equity in your current home as some or all of the deposit for the new place so you might want to consider what needs doing to your current home.
Stand outside and think how can we make it look better ?
Paint the front door, clear the garden of weeds, lighting ! Security etc.
Don't spend £20,000 on a new kitchen if you want to move but fix things that are broken, clean and fresh paint if needed.