Selling a house for the first time - HELP!

pjrouse

Hi all

I apologise for all the questions but me and my fiance are just running through a theoretical moving scenario which may present itself to us next year and are trying to get an idea of costs involved (ie do we need to save more before then to make it possible). The place we are in at present is our first house and we have never sold or moved before so need some more info. I know prices are going up and down but I am basing my figures on if we were to do it tomorrow.

Situation (in round figures)

Current place in London worth 200K
Owe 150K on mortgage

Looking at place out of London for 250K
Can lay hands on savings of around 30K

My questions revolve around our mortgage

1) If we were to sell our house for 200K and keep the same lender what happens?

House sale - 200k plus savings of 30K equals 230K (forget agents fees etc for simplicity)

do we apply to the lender for the extra 20K to borrow over the remainder of our mortgage term and go from there?

2) Our financial circumstances since we originally took out the mortgage have changed in that we earn quite a bit more now between us than 2yrs ago. Any move away from London might mean that our incomes go back down to around the level of when we originally applied for the mortgage. Will this have any bearing on the extra 20K we would need to borrow? What I mean is that we borrowed as much as the bank would allow for our income back then and are now asking for 20K more - would our record of meeting payments on time for the last 2yrs re assure the bank or would we have to find that 20K elsewhere (or look at cheaper houses)

3) If we were to change lender do we have to reapply for another mortgage and pay off any redemption penalties and go from there?

Thanks for any help and advice offered.

Paul

Mr_Proctalgia

Your mortgage is against the property you live in, not against you as a person. When you sell the mortgage is redeemed and you start again with a new one - However it will be easier to stick with the same lender as you might get arrangement and/or legal fees waived. Sooooooooo

current house value = £200K minus £150K mortgage gives you £50K left over

Plus savings = £80k for use as a deposit. So you need to borrow £170K to buy at £250K

Do not forget redemption fees, sols fees, selling fees and stamp duty they make an ENORMOUS difference. (I'm talking possibly 10K here if not a bit more)

A pay rise of about £4.5K would cover the extra £20k needed but I'm not going to preach to you and say do not over stretch yourselves - You know your lifestyle, work out how much you can afford to pay out and live a little too. Godd luck getting out of London too.

pjrouse

Thanks for the info!

Paul

wisperingwill

hi do what idid cut out the estate agents put your own sign up i did the response was great i sold in first week.