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  • FIRST POST
    • sandyk01
    • By sandyk01 13th Mar 18, 8:39 PM
    • 23Posts
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    sandyk01
    Mortgage question....
    • #1
    • 13th Mar 18, 8:39 PM
    Mortgage question.... 13th Mar 18 at 8:39 PM
    Hi guys

    This might sound like a really stupid question....

    So we got our first mortgage 5 years back for 146k. Over the years we paid some of it off and it's now at 133k.

    We are now selling and buying a new house. Porting the 133k and borrowing an additional 120k.

    Mortgage offer says... they will give 133k and 120k for the new house which is what we need.

    So my q... what happens to the 13k we've paid over the past 5 years on the first mortgage. We'll get that back right once our house is sold from the solicitors??

    I feel Im being a bit stupid

    Thanks Guys x
Page 1
    • ACG
    • By ACG 13th Mar 18, 8:44 PM
    • 17,175 Posts
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    ACG
    • #2
    • 13th Mar 18, 8:44 PM
    • #2
    • 13th Mar 18, 8:44 PM
    Presumably the equity in the house you are selling is enough to bridge the gap between 253k (133k + 120K) and the actual purchase price? Anything over and above that difference (if anything) will get paid to your account.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • enthusiasticsaver
    • By enthusiasticsaver 13th Mar 18, 8:44 PM
    • 6,702 Posts
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    enthusiasticsaver
    • #3
    • 13th Mar 18, 8:44 PM
    • #3
    • 13th Mar 18, 8:44 PM
    The 13k is part of the equity in your house. What are you selling for and how much is the new property?
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • sandyk01
    • By sandyk01 13th Mar 18, 9:00 PM
    • 23 Posts
    • 2 Thanks
    sandyk01
    • #4
    • 13th Mar 18, 9:00 PM
    • #4
    • 13th Mar 18, 9:00 PM
    So to be exact.....

    We brought current house for 196k. We put 50k down and got mortgage for 146k.

    We got a letter 2 months back saying there was approx 133k left (and so we paid 13k)

    Now selling, new house is 381k. The 133k from above is being ported and we're borrowing an additional 123k to make up 256k new mortgage.

    So adding the 50k we put in originally and selling this house profit of 73k total 123k.

    So 123k(profit) plus 133k (original mortgage) and 123k (New motgage) for the 381k house.

    Am I right in saying theres the original approx 13k we paid off returning to us or am I just not calculating right?
    • enthusiasticsaver
    • By enthusiasticsaver 13th Mar 18, 9:12 PM
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    enthusiasticsaver
    • #5
    • 13th Mar 18, 9:12 PM
    • #5
    • 13th Mar 18, 9:12 PM
    The 13k is part of the 73k profit.

    Original house price is 196k less deposit of 50k so a mortgage of 146k

    13k repaid off the mortgage leaving 133k to pay which is being ported to new property.

    Presumably you are selling existing property for 196k plus 73k? That makes it 269k? Subtract the mortgage of 133k and the deposit to go to the new property is 136k.

    New property is 381k less deposit of 136k is 245k so I am not sure why you need a 256k mortgage unless you are not selling for 269k?
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • Thrugelmir
    • By Thrugelmir 13th Mar 18, 9:15 PM
    • 59,257 Posts
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    Thrugelmir
    • #6
    • 13th Mar 18, 9:15 PM
    • #6
    • 13th Mar 18, 9:15 PM
    What's the agreed selling price of your existing property?
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • sandyk01
    • By sandyk01 13th Mar 18, 9:20 PM
    • 23 Posts
    • 2 Thanks
    sandyk01
    • #7
    • 13th Mar 18, 9:20 PM
    • #7
    • 13th Mar 18, 9:20 PM
    I am really confused now...... I think i need to call them tomorrow!

    The mortgage offer is for 256k.... does that mean theres a spare 11k floating about?!
    • sandyk01
    • By sandyk01 13th Mar 18, 9:22 PM
    • 23 Posts
    • 2 Thanks
    sandyk01
    • #8
    • 13th Mar 18, 9:22 PM
    • #8
    • 13th Mar 18, 9:22 PM
    We are selling for 269k and buying at 381k.

    We originally brought for 196k so 73k profit.
    • enthusiasticsaver
    • By enthusiasticsaver 13th Mar 18, 9:29 PM
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    enthusiasticsaver
    • #9
    • 13th Mar 18, 9:29 PM
    • #9
    • 13th Mar 18, 9:29 PM
    It is really quite irrelevant to look at it from the way you have been.

    The crunch questions are how much are you selling your existing property now Answer 269k. (Ignore what you paid when you bought it)

    How much is your existing mortgage Answer 133k

    Deposit for new property is sale price less mortgage so 136k

    Purchase price for new property is 381 less the deposit of 136k so as I said the new mortgage needs to be 245k.

    If you have applied for 256k mortgage your solicitor will assume you wish to use 11k of your deposit towards something else and that will be spare and returned to you after completion less costs of course. Did you apply for extra to cover stamp duty and costs?
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • enthusiasticsaver
    • By enthusiasticsaver 13th Mar 18, 9:32 PM
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    enthusiasticsaver
    Sorry I have just read your OP again and note the new mortgage will be 253k not 256k so there will be a spare 8k not 11k.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • sandyk01
    • By sandyk01 13th Mar 18, 9:33 PM
    • 23 Posts
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    sandyk01
    Yes so the extra 11k would be used for stamp duty. So thatll go to the solicitor and assume they will just keep it for that.

    phew- just been panicking for the past hour!
    • enthusiasticsaver
    • By enthusiasticsaver 13th Mar 18, 9:36 PM
    • 6,702 Posts
    • 14,258 Thanks
    enthusiasticsaver
    Yes so the extra 11k would be used for stamp duty. So thatll go to the solicitor and assume they will just keep it for that.

    phew- just been panicking for the past hour!
    Originally posted by sandyk01
    There will be a spare 8k as your new mortgage will be 253k. I am not too up on what stamp duty is since the changes in the last few years but you presumably know what it will be?
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • sandyk01
    • By sandyk01 13th Mar 18, 9:41 PM
    • 23 Posts
    • 2 Thanks
    sandyk01
    Yes we have the extra 1k. Stamp duty on that 381 will work out as 9050.

    Thanks so much for your help!
    • enthusiasticsaver
    • By enthusiasticsaver 13th Mar 18, 9:43 PM
    • 6,702 Posts
    • 14,258 Thanks
    enthusiasticsaver
    Problem solved. Hope the move goes well.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
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