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Stupid Question on How Much I Need to Borrow

TractorFactor
Posts: 140 Forumite

I think I may have mis-calculated here.
We're selling.
I can port my mortgage to the new property.
Mortgage left is £100,000.
We sell our house for £200,000.
House we're buying is £350,000.
Does this mean I need a mortgage of £150,000?
Boring bit:
I originally thought it was going to be £250,000 as we'd use the £100,000 of profit as a deposit, then need £250,000 to get a new mortgage to make the £350,000. But that doesn't take into account the original £100,000 left on the mortgage.
I have simplified the numbers for this but they're around about the right figures.
Thank you for any help.
My mind is boggled.
We're selling.
I can port my mortgage to the new property.
Mortgage left is £100,000.
We sell our house for £200,000.
House we're buying is £350,000.
Does this mean I need a mortgage of £150,000?
Boring bit:
I originally thought it was going to be £250,000 as we'd use the £100,000 of profit as a deposit, then need £250,000 to get a new mortgage to make the £350,000. But that doesn't take into account the original £100,000 left on the mortgage.
I have simplified the numbers for this but they're around about the right figures.
Thank you for any help.
My mind is boggled.
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Comments
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Look at it this way
you sell the house and pay off your current mortgage
you then have £100k in the bank
you pay the 100k as a deposit
How much do you still owe on the house?
I make it £250k
Sometimes you can get yourself in a tizzy trying to work out finances0 -
Look at is this way....
Separate the sale from the purchase as you pay one mortgage off (mortgage 1) on sale - and take another mortgage (mortgage 2) on purchase.
You port the product rate, not the mortgage
Sale price £200,000
Cost to repay mortgage 1 £100,000
Leaving Funds to go forward £100,000
Purchase price £350,000
Funds available £100,000
Mortgage 2 Needed £250,000
You put £100,000 of lending on mortgage 2 on the ported product rate, with the remaining £150,000 of lending on a new product rate
Obviously, there are complications like agents fees and taxes, but you get the idea.
I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
You need £350k.
You will have £100k from the sale of your house.
That leaves you needing £250k.
If you are porting over the £100k mortgage you currently have, then you need an additional £150k from the same lender.
If you are not porting over the mortgage then you need £250k from a new lender.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thank you both for sorting out my mind mush.
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