Moving house release funds

ally_n_2000

We have accepted an off on our house and are currently looking for another.

We will be using the proceeds from selling our house to fund the next mortgage deposit.

I wanted to know, can I release funds in order to use for home improvements on the next property.

Eg

Selling current house for £400k and have 100k left on mortgage meaning £300k equity.
Next house we wish to buy is £500k. Can we keep £20k of the £300k and only put £280k deposit down.

If so, how does this work in reality when exchanging and completing.

Thanks in advance.

Edit: I should have said, we are porting our mortgage so as not to be hit with ERC.

user1977

Yes, it's up to you what you do with the equity from the sale, no rule that you need to plough all of it into the purchase price. So if you want to borrow more instead (and can afford to do so) then you can, and keep some cash for whatever you want.

dimbo61

So your porting your current mortgage balance and borrowing an extra £100,000+ Stamp Duty and fees at whatever rate your existing lender decides to offer !
With that size of mortgage please use a mortgage broker to shop around for you 

kingstreet

Similar subject as here;-

https://forums.moneysavingexpert.com/discussion/comment/79214605#Comment_79214605

You are porting the terms to a new mortgage, not the mortgage itself.

The new mortgage can be the same size, smaller or larger depending on the purchase price of the property and your chosen "deposit" from the equity from your earlier sale. Once you have the funds from the sale of your previous property they cease to be equity and can be used for any purpose, but will leave you with a smaller deposit.