Mortgage dilemma

skidd

Can anyone advise as I feel like I’m walking through a mine field. We have sold our property for £407500 and have put in an offer on a new house for £390000. We have a mortgage of £130000 and will be porting this over. My head is saying that I need to add the £407500 & £130000 mortgage  then minus the £390000 for purchase this will then leave with the difference in the bank. Please someone advise it’s driving me mad.

Sapindus

Imagine it without the porting bit.  You sell your house for 407500, the bank gets 130000, you get 277500.  Then you buy a house for 390000, the bank lend you 130000 again so you don't need to spend your whole 277500 on the new house, you only need to spend 260000.  So you are left with 17500. But you will spend a fair chunk of that on solicitor, estate agent, removals etc.

bobster2

You can think of it more simply than that - you sell a house for £407,500 and buy a house for £390,000 - you've got £17,500 in cash left over. The fact that you also had a debt of £130,000 before and after doesn't change this.

However, that £17,500 will get eaten up quite quickly by...

• Stampt duty (£7,875)
• Estate agents fees for sale - average 1.5% = £5,850
• Solicitors/conveyancer fees for sale £500-£1,000
• Solicitors/conveyancer fees for purchase £800-£1,500
• Removal costs
• Land Registry fee, mortage arrangement fee (possibly depending on deal) etc