Moving Home/Mortgage type question

Liquid_Entity

Liquid_Entity

Liquid_Entity

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Hi

As a first time buyer previously I found the whole process fairly simple however I want to start looking to move home to a bigger place.

We got a mortgage together with my fiancee in May 2015 and have renewed on another 2yr fix last May 2017. After our wedding this July I want to start ploughing any savings in to a pot to help us consider a move up the ladder.

Current mortgage owing £165614.93 at 1.89%. I am currently overpaying £50 a month and redemption date isn may 2044 (not sure this is relevant for now)

So we bought the current property at £196k using £20k deposit and the rest on mortgage and it is probably worth around £220k now. My question is if I look at a home for say £300k and I wanted to look at a mortgage calculator to see what the payments were. On most online calculators they say property value and deposit. What would I put down as a deposit? The value of the house minus the mortgage?

Sorry for dumb question if it's simple
 
You've got about £50k worth of equity in your current house, so I'd use that as the amount for the new mortgage.

Edit: maths fail!
 
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Say you sold the current house for £220k and "paid off" your current mortgage of £156,614.93 — you would technically have £54,385.07 as a deposit towards the new house. Although this may increase by May 2019, especially if you save/overpay in the meantime.

A £300k house will come with £5k stamp duty, you will incur costs for selling your current place and the cost to move — that could swallow another £10k.

So, unless you have additional savings to cover the cost of moving, I would agree with @Street and say you've got a £40k deposit (13.33% on a £300k property).

Bear in mind, a 86% loan-to-value ratio isn't going to get you the best mortgage rates.
 
Thanks yeah I am aware we have little savings at moment because it's all being ploughed in to the wedding. After wedding i should be able to save £250 a month. So probably can't do anything until another year at least.
 
Liquid_Entity said:
Thanks yeah I am aware we have little savings at moment because it's all being ploughed in to the wedding. After wedding I should be able to save £250 a month. So probably can't do anything until another year at least.
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Makes sense, you'd be able to add an extra £2,500 between August 2018 and May 2019 when your current fixed-rate is up — plus the mortgage should have gone down a little bit by then — your move costs might not be as high as above either — it depends how much stuff you've got and how far you're moving, whether you have an expensive estate agent to sell your house or go down the Purple Bricks route etc.

So you could potentially have £45–£50k by the time your fixed rate expires.

Street said:
Also, if you move while still on your fixed rate, you'll get hit with a massive fee too!
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Yes, unless he's able to port his current mortgage.
 
It's annoying as the whole system seems to be designed to get you to hemorrhage as much money as possible and everyone else gets their little slice of the pie.
 
I would also look at what is more important, a wedding or a new house as the money saved by not getting married could be ploughed into the new house
 
It's not an extravagant wedding by any means. Had £2k saved up before and bonus this March will pay for most of it. Max budget was £5k and we've paid most of the wedding costs off bit by bit. It just limits my savings but I still managed £650 in a Stocks & Shares ISA in the past 10 months too.
 
Ok fair enough, both myself and the wife have said we'd rather have knocked the £12k it cost for our wedding off the mortgage and just not bothered with the wedding.
 
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