Stupid Question on How Much I Need to Borrow

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.

Comments

  • FlorayG
    FlorayG Posts: 2,208 Forumite
    Seventh Anniversary 1,000 Posts Photogenic Name Dropper
    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 finances ;)
  • amnblog
    amnblog Posts: 12,699 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 16 October 2024 at 8:27AM
    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.
  • ACG
    ACG Posts: 24,465 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    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 Adviser
    You 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.
  • Thank you both for sorting out my mind mush.
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