Help with mortgage budget

casson2006

I was wondering if anyone would be able to explain the mortgage process. 

Me and my partner bought our first house and are looking at selling to buy another house.

I am trying to figure out our budget for the next house. We have around £210,000 left on our mortgage. Our house has been valued at £400,000. 

So does that mean we would have £190,000 towards the mortgage of our next house?
for example if we went for a house that’s £420,000, we would need a mortgage of £230,000? 

Thanks 

[Deleted User]

In principle, yes. The £190k would be the total equity in your property that's the max you can put towards a new property. 

It will depend on if you have got other funds put to one side for stamp duty / conveyancing / estate agency fees etc on the next property or if you will be taking these out of your current equity.

If you have additional funds to cover these it could be £190k equity + £230k mortgage = £420k new home or it may look like £15k taken out of equity to cover these different areas or for renovations etc so you'd be left with £175k equity + £245k mortgage = £420k new home