we want to be 2nd time buyers but don't know if its possible?

charl203

Apologies in advance for the dumb questions to follow...
We have had our house for 2 years on a 3 year fixed rate mortgage. The house was bought for £90,000 with an £80,000 mortgage. We have been valued at £120,000 and are interested in houses at approx £150,000. We pay £500 per month mortgage and are hoping that we could move up the ladder without payingmuch more each month. How does that work? is it possible? Does the potential £30,000 profit become our next deposit and a new mortgage arranged from there? Or as the value of houses we're interested in is nearly twice our original purchase, will the mortgage also be twice as much. I know we should see a mortgage advisor and we will, but would like to go in with some idea of whats possible. Thanks for any advice given.

martin1018

Hi,

I am by no means an expert, although I'm sure someone with more knowledge will be along soon.

That said what you propose is quite achieveable, although you may have to pay a bit more, and it depends on how your current lender deals with the fact that you've not yet finished the fixed rate period - which may make it a pointless exercise.

Going by your figures you will need to increase your mortgage by £30,000 (the difference between the sale price of your current house and the cost of the new) I estimate (just with simple maths) that your payments might go up to £687.50 rather than the £500 you pay now, but that would obviously depend on the deal you get.

As you say, you need to speak to a mortgage advisor, of which many on here may be able to help.

Good luck.