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You owe 250K on a sale price of 360k so you have £110k equity in the home.
How much you need/want to borrow, LTV etc is up to you. If you only want to borrow £350k, use all of it. If you can get a 90% mortgage, pass affordability etc, then £46k and borrow £416k. Or anywhere in between.
If you want to move mortgage providers instead of porting with your current provider there may be extra charges for things like paying off mortgage early, depending on your terms
kkg337-
Thank you!
So in terms of the new property being purchased - how does the deposit transaction work?
So if we say that Property B (£460K) is acquired at 90% LTV and a £46K deposit is therefore required, do I actually need to find those funds in advance of exchange/completion? Or does a share of the £110K equity that will be realised when completing the sale of Property A instead act as a deposit in effect?
dwl
ELI5 - I'm otherwise fairly financially literate but seem to have a massive blank spot when it comes to the understanding the basic moving parts of this (hypothetical) scenario.
I purchased my current home for £320,000 (£20K deposit, £300K mortgage) - remaining mortgage balance is about £250K
I sell this home for £360K and simultaneously buy a new home for £460K
Ignoring Stamp Duty, solicitors etc. what's the amount of hard cash I should reasonably expect to have to hand over to facilitate my move up the property chain?