Buying and selling - Cant get my head around the maths - help please

[Deleted User]

Hi can anyone help please I feel like I'm going round in circles

I have bought and sold on 3 occasions each time going into or coming from rented. I am now in a position where I may be buying and selling but for the life of me cant get my head around the maths and everytime I do it i get a different figures, anyone with a maths brain check this please? I have rounded up some figures...

I have a current mortgage of £91
I am selling for 142k
I want to buy for £160k
I am able to port my mortgage and increase it up to 136k

All post completion outgoings (EA, solicitor, removal costs, paying off debts) come to 13.5k

I have some saved for searches and surveys so dont need to factor that in.

My maths says I would be left with 13.5k after completion 
Does that seem right?
I think it's the porting I can get my head around and the deposit moving up the chain? 

Thanks

user1977

Yes, that seems correct.

AdrianC

Purplepenguin70 said:

I have bought and sold on 3 occasions each time going into or coming from rented. I am now in a position where I may be buying and selling but for the life of me cant get my head around the maths and everytime I do it i get a different figures, anyone with a maths brain check this please? I have rounded up some figures...

I have a current mortgage of £91
I am selling for 142k

So you have £51k equity.

I want to buy for £160k

You need to borrow £109k for the purchase.

All post completion outgoings (EA, solicitor, removal costs, paying off debts) come to 13.5k

If you're going to add that to the mortgage, then you need to borrow £122.5k

My maths says I would be left with 13.5k after completion

If you borrow the maximum £136k, yes. But you don't have to. Better to borrow less than to be paying interest on cash that just sits around, right?

I think it's the porting I can get my head around

Think of the porting as just moving your current deal, and you're actually repaying one mortgage and borrowing another.

and the deposit moving up the chain?

Simply put, the person at the bottom of the chain wops 10% onto the table.
Everybody above them says "Is that OK with you?" to the person above them, who usually agrees.

dimbo61

The best deals are either 60%  or 75% Loan to Value.
So if your buying a £160,000 property putting down a deposit of 25% or £40,000 should get a good rate.
Your other £11,000 can be used to pay fees and other costs.
What is your current rate ? ERC ?

getmore4less

Buy - sell   = new debt.
£160-£142= £18k

total debt = old debt + new debt + additional costs

£91k + £18k  £13.5k  =  £122.5k

LTV 76.5% 

£136k is 85% that will be a lot more expensive


you need to review your port and rates and see if you can find another £2.2k to get under 75%
(maybe pay off less of the debt)

which lender?
Any ERC if you move away?