Profit from First Mortgage to Second Mortgage

Gimli_SonOfGloin

I've been in a mortgage for nearly nine years now, and I feel like - after all that time and building up all that equity - it won't even make a difference in the end.

Maybe I'm being naive, but surely if the value of homes have rised alongside the value of mine, it'll all be relative when I do eventually move. And that's if the equity actually gives me more to spend or simply gets me back to step one if the value of my home depletes by then…

Keep_pedalling

Do you have a question relating to energy?

t0rt0ise

https://forums.moneysavingexpert.com/discussion/comment/81870234#Comment_81870234

They've obviously made a mistake posting in the wrong forum. It's easily done.

Scot_39

suspect you really wanted this in the Mortgage Remortgage section not energy

https://forums.moneysavingexpert.com/categories/mortgages-endowments

You can either repost there and close this - or ask a forum operator via the report function asking them to move it

RelievedSheff

I'm not sure of your question here but there are so many variables. No two house moves are ever the same.

We are in the process of buying a bigger house now, moving up the ladder so to speak. As one stand alone example here are our figures and how our move stacks up.

We bought our current house in 2019 for £210k with a 10% (£21k) deposit. (10% equity)

The house is now SSTC for £250k and we have an outstanding mortgage balance of £120k. (52% equity)

So in almost 7 years our equity has increased from £21k to £130k with £40k of that being an increase in house price and the remaining £69k being gained from mortgage repayments and overpayments.

The house we are buying our offer is £402k and we are putting down a deposit of £97k (24% equity).

We will start out in the new house with a higher percentage of equity when compared to value than we did with our current house.

kingstreet

https://forums.moneysavingexpert.com/discussion/6653805/profit-from-first-mortgage-to-second-mortgage

You seem to have grasped the futility in celebrating house price inflation. Yes, the next one is going to be proportionately more expensive.

ACG

It is all relative. I always say it does not matter if my house is worth a pound or a million pounds.

Arguably I would actually like house prices to drop on a personal level. If houses prices drop by 10%, as I want to buy a more expensive home, 10% would be numerically more and so would actually do me a favour.