Mortgages / Moving Home

[iwbus]

In 1999 I took out a mortgage to buy a flat for 39,000. The flat is now worth just over 90,000 and I would like to move to a bigger place, locations in mind have been around 130,000. How much would I need to borrow? How would the increase in value of my current place help with my new mortgage deal? Would I need a deposit for a new mortgage on a new place? How much would that be? What would monthly repayments be like (I'm currently paying 253 p.m.)?

[Didwot]

Assuming that you intend to sell your present flat, then you will need to borrow at least an additional 40,000 which is the difference in price between your flat, and the bigger place you refer to. However you will have to add into the calculation the cost of selling your flat (estate agents fee's and solicitor's fees) and the cost of buying the new place (solicitor's fees, search fees, stamp duty (1% of the purchase price) and Land Registry fees). Alltogether those will probably come to something like 3,500. Then you may need to budget for carpets, curtains, etc, and removal expenses. It may be that you have some savings to put towards thes matters. Obviously the net proceeds of sale of the flat can be used towards the purchase price of the new place, and act as the "deposit" towards the mortgage. If you sell and buy at the same time the deposit you get on exchanging the sale contract can be uses as the deposit on the purchase contract. How much will your mortgage go up? Well you are more than doubling your borrowings, so you should expect the repayments to more than double.

[Mrs_Pegasus]

You need to get a settlement figure off your current lender.

Did you take a repayment or endownment mortgage?

If you have a repayment mortgage you can roughly work out how much you have paid off you flat.

But for arguments sake, lets say you have reduced the loan by 7,000.  You owe �32k and have equity of �58k so this would act as your deposit therefore you would be looking for a mortgage of �72k but like the previous poster said, you would have to put money aside for fees etc.

Take a look at www.thisismoney.co.uk they have some handy calculators where you can work out how much you will be paying each month.