If we sold our house for less than we bought it for..

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utb100
utb100 Posts: 5 Forumite
in Mortgages & endowments
Hi

We bought our house for 325k with a 110k deposit and taking out a 215k mortgage.
Say for example we sold our house for 315k, I know we wouldn't be in negative equity but what would happen to that 10k?? Would we owe our lender that money or would it be possible to port it across towards another mortgage?


Thanks

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  • Carrot007
    Carrot007 Posts: 4,534 Forumite
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    The money would not exist. No one gets it.
  • chunkytfg
    chunkytfg Posts: 844 Forumite
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    You get back whatever is left out of the sale after all fees and debts are repaid.

    so you owe 215k and sell for 315k you would get 100k back minus things like solicitor fees.
    Those who risk nothing, Do nothing, achieve nothing, become nothing
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  • ACG
    ACG Posts: 23,728 Forumite
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    When someone buys your home, their money gets transferred to your solicitor.

    Your solicitor then takes out the money to pay any charges against the property (your mortgage) and then transfer you the difference.

    If we assume you had an interest only mortgage for ease.
    You would sell the house for £315k and £215k would get paid off leaving you with £100k. Presumably it would be a little more than that as you are on a repayment mortgage.
    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.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    utb100 wrote: »
    Hi

    We bought our house for 325k with a 110k deposit and taking out a 215k mortgage.
    Say for example we sold our house for 315k, I know we wouldn't be in negative equity but what would happen to that 10k?? Would we owe our lender that money or would it be possible to port it across towards another mortgage?


    Thanks

    Neither. The £10k has disappeared. Forget about it.
    You have £100k equity in the house instead of £110k.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
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    utb100 wrote: »
    what would happen to that 10k?
    If you buy a car for £10k, and later sell it for £6k, what do you think "happens" to the £4k?
  • Raggie
    Raggie Posts: 613 Forumite
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    Unlike the real missing money...


    Three friends decide to split the bill after a meal at a restaurant. The waiter says the bill is £30, so each guest pays £10.

    “Later the waiter realises the bill should only be £25. To rectify this, he takes £5 from the amount to return to the group.

    “On the way to the table, the waiter realises that he cannot divide the money equally. As the customers didn't know the total of the revised bill, the waiter decides to just give each of the three friends £1 and keep £2 for himself.

    “Each guest got £1 back: so now each guest only paid £9; bringing the total paid to £27. The waiter has £2. And £27 + £2 = £29 so, if the guests originally handed over £30, what happened to the remaining £1?”
    The only place where success comes before work is the dictionary…
  • robatwork
    robatwork Posts: 7,093 Forumite
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    I have an arrangement with most big lenders in the UK that all of these bits of negative equity go straight to my account.

    Can't wait for the next big crash - after 1991 I moved into a 8 bed Kensington pad.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    Raggie wrote: »
    Unlike the real missing money...


    Three friends decide to split the bill after a meal at a restaurant. The waiter says the bill is £30, so each guest pays £10.

    “Later the waiter realises the bill should only be £25. To rectify this, he takes £5 from the amount to return to the group.

    “On the way to the table, the waiter realises that he cannot divide the money equally. As the customers didn't know the total of the revised bill, the waiter decides to just give each of the three friends £1 and keep £2 for himself.

    “Each guest got £1 back: so now each guest only paid £9; bringing the total paid to £27. The waiter has £2. And £27 + £2 = £29 so, if the guests originally handed over £30, what happened to the remaining £1?”

    It's not missing, the three men paid £9 each (£27) and £2 of that £27 went to the waiter leaving £25 for the (very cheap) meal. Did they just have starters? :D
    Short version don't add the £2 to the £27 subtract it.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
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    AnotherJoe wrote: »
    It's not missing, the three men paid £9 each (£27) and £2 of that £27 went to the waiter leaving £25 for the (very cheap) meal. Did they just have starters? :D
    Short version don't add the £2 to the £27 subtract it.

    Wetherspoons, it include food and a drink.
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