Am I right or plain stupid?

lara400

Hi,

Am I right or being plain stupid - someone please slap me. :think:

Right, I have a house which is worth ~£240-250k - only bought it very recently. I have a morgage of about 207k.

If I find a house which is worth say 350k and I sell my existing house for say 250k then would I be entitled to a morgage of 100k since I am using the 250k from the sell to pay part of the new house?

I wish it were that simple but can someone please comment. I am very very new to this so excuse me for sounding dumb!

Thanks

tomstickland

A mortgage is just a loan, so you only need to borrow the bit you haven't got funds for. You're not "entitled" to a mortgage - the lender decides whether they are prepared to lend it to you.

PasturesNew

lara400 wrote: »

I have a house which is worth ~£240-250k - only bought it very recently. I have a morgage of about 207k.

If I find a house which is worth say 350k and I sell my existing house for say 250k then would I be entitled to a morgage of 100k since I am using the 250k from the sell to pay part of the new house?

Nobody is ever entitled.
You would have to qualify for the increased lending. So you'd have to be mortgageable at £307k.

When you sell the house at £250k think of it in terms of: you settle the existing mortgage of £207k, pay your fees, pocket the rest. Then, get a new mortgage and pay all the fees etc to start again. The £250k is never yours.

Some mortgage products are "portable" but you still need to meet a lender's criteria for portability and affordability.

And you'd need a £35-70k deposit, which you wouldn't have.
£250k - £207k = £43k
fees to sell £4k = £39k
fees etc to buy £2k = £37k
stamp duty to buy £10,500 = £26.5k
misc £1,500 = £25k

So you'd have a deposit of about £25k, so to recap:

- you would need a bigger deposit
- you would need to be mortgageable at the higher amount
- the new property would need to be mortgageable

eco-friendly_2

Am I right or being plain stupid - someone please slap me.

No it's official! sorry to say you're plain STOOPIT.


I know a couple of slappers, give me your address, I'll send them round

moneysavinmonkey

lara400 wrote: »

Hi,

Am I right or being plain stupid - someone please slap me. :think:

Right, I have a house which is worth ~£240-250k - only bought it very recently. I have a morgage of about 207k.

If I find a house which is worth say 350k and I sell my existing house for say 250k then would I be entitled to a morgage of 100k since I am using the 250k from the sell to pay part of the new house?

I wish it were that simple but can someone please comment. I am very very new to this so excuse me for sounding dumb!

Thanks

In the nicest possible way OP from your above post it looks like you are not very good, in fact truly appalling, with numbers/maths.
Recognise that as a first step to moneysaving!

IF you sell your house at 250k you have to pay the mortgage you already have... 250 - 207 = 43k

Presuming you have no other savings you will need some of this cash to pay your selling costs and buying costs, not forgetting stamp duty for the 350k house. I will allow 15k a a rough guess. so you are left with... 43 - 15 = 28k

This means you have a 28k deposit to put down on the 350k house (NB this is less than 10% so you might struggle to find a good deal for a mortgage). the amount of mortgage you will need is... 350 - 28 = 322k

the amount of mortgage you are ENTITLED to is based on your ability to pay the money back - ie your salary and other income. for a 322k mortgage you are realistically going to need a salary of at least 80k.

The other thing to bear in mind at the moment is that the housing market is truly tanking (Halifax report house prices dropped 2.5% in March alone - that's over 6k off a 250k house) and every day mortgages are getting withdrawn + rates going up. Unless it is critical to your family + you have a very stable job a better plan would be to avoid taking on anymore debt and pay down the mortgage you do have to build up as much equity as you can in your home to protect yourself.

sarah_elton

lara400 wrote: »

Hi,

Am I right or being plain stupid - someone please slap me. :think:

Right, I have a house which is worth ~£240-250k - only bought it very recently. I have a morgage of about 207k.

If I find a house which is worth say 350k and I sell my existing house for say 250k then would I be entitled to a morgage of 100k since I am using the 250k from the sell to pay part of the new house?

I wish it were that simple but can someone please comment. I am very very new to this so excuse me for sounding dumb!

Thanks

Are you asking if you would have only a £100k mortgage at the end of the process?!! No!!

You have to pay your bank back that £207k that you owe them. This money would come from the sale of your house.

You would need to get a mortgage for an EXTRA £100k. On top of the £207k.

neas

Lol.. that is plain naive... so you borrow 250k... pay 47k back and then expect to only pay 100k for a 350k house? :P

A mortgage means the bank owns your house.. and you are paying them back over time. Its a loan.

You have 47k... in your house you need to pay the bank back 203k then... you can get a mortgage on the other property.

What happened to darwin?

epsilondraconis

lara400 wrote: »

Hi,

Am I right or being plain stupid - someone please slap me. :think:

Right, I have a house which is worth ~£240-250k - only bought it very recently. I have a morgage of about 207k.

If I find a house which is worth say 350k and I sell my existing house for say 250k then would I be entitled to a morgage of 100k since I am using the 250k from the sell to pay part of the new house?

I wish it were that simple but can someone please comment. I am very very new to this so excuse me for sounding dumb!

Thanks

Classic. :beer::j:mad::rolleyes::p;):D:o:cool::eek::rotfl::T

If you manage to get the 350k house and only have a mortgage for £100k, please contact me so I can have you arrange my next mortgage application...

mpsavuk

"Right, I have a house which is worth ~£240-250k - only bought it very recently. I have a morgage of about 207k.

If I find a house which is worth say 350k and I sell my existing house for say 250k then would I be entitled to a morgage of 100k since I am using the 250k from the sell to pay part of the new house?"

The scary thing is that there are 1000's more people in the country who do their mortgage maths the same way.

neas

I think this is fake.

PasturesNew

mpsavuk wrote: »

The scary thing is that there are 1000's more people in the country who do their mortgage maths the same way.

I think they call it Mawgij Maffs Init

My favourite bit wasn't the maffs, it was the "entitled" bit... had me peeing myself for hours ...!