Part-Exchange - 95% Mortgage

slm014

Hi Everyone

I am currently offering my house in a part-exchange for a new property.

How does applying for a 95% mortgage work on a part exchange? Do you get 95% of the full value of the property you are buying OR do you get a 95% mortgage on the remaining amount to be paid on the new property minus your partexchange value on the new property?

For example....

New Property = £135,000
Part exchange Value of old property = £50,000.

Do you get £128,250 with the 95% mortgage or only 95% of the difference between new property value and part-exchange value? ie £85,000 (£135K-£50K)?

Hope someone can help???

payless

the new loan is based as a % of the value of the new property
( obviously on sale any mortgage you hav on the old property will need to be repaid in full)

the max % will depend on the lender criteria and you meeting it

slm014

So that means i will get the mortgage on the value of the property i am buying?

I still have 30K outstanding on my own mortgage.