Stupid House Moving Question

[RosscoPCole]

We are buying a house at £550,000, have sold our house at £360,000. Our mortgage company say we can purport our existing mortgage of £135,000. How much would we have to pay for the new house? Is it £190,000 or is it £55,000? The money is no problem as we have inheritance from the sale of my Mum's house last year.

Edited by RosscoPCole on Monday 15th April 19:03

[Mr Pointy]

Well £360k - £135k is £170k - that's the equity you have in the current house. £550k - £170k is £380k so you need your current mortgage of £135k & another £245k as well.

245k+135k+170k=£550k

[jrb43]

RosscoPCole said:

We are buying a house at £550,000, have sold our house at £360,000. Our mortgage company say we can purport our existing mortgage of £135,000. How much would we have to pay for the new house? Is it £190,000 or is it £55,000? The money is no problem as we have inheritance from the sale of my Mum's house last year.

Edited by RosscoPCole on Monday 15th April 19:03

You will have to pay £550000 for the house. If you have sold your house for £360000 and have an outstanding mortgage of £135000, you have £225000 "cash" (equity) coming out of that transaction. If you're simply porting the mortgage, you'll pay £225000 cash and £135000 mortgage towards the new purchase. You'll therefore need to find £190000 towards the purchase. Either from an increased mortgage or from other sources. Don't forget you'll need to pay stamp duty too.

Unless I've misunderstood?

[jrb43]

Mr Pointy said:

Well £360k - £135k is £170k

Not in base 10 it isn't. My maths is rubbish but I'm hanging on in there

[RosscoPCole]

Mr Pointy said:

Well £360k - £135k is £170k - that's the equity you have in the current house. £550k - £170k is £380k so you need your current mortgage of £135k & another £245k as well.

245k+135k+170k=£550k

Thanks Mr Pointy, but I think your maths is wrong somewhere.

[RosscoPCole]

jrb43 said:

You will have to pay £550000 for the house. If you have sold your house for £360000 and have an outstanding mortgage of £135000, you have £225000 "cash" (equity) coming out of that transaction. If you're simply porting the mortgage, you'll pay £225000 cash and £135000 mortgage towards the new purchase. You'll therefore need to find £190000 towards the purchase. Either from an increased mortgage or from other sources. Don't forget you'll need to pay stamp duty too.

Unless I've misunderstood?

Thanks jrb43. That's what we originally thought. Mr Pointy got me worried for a while until i worked out his maths was wrong.

[Condi]

Mr Pointy said:

Well £360k - £135k is £170k -

Maybe check your calculator is right way up!!

[Actual]

Condi said:

Maybe check your calculator is right way up!!

5318008

[dalenorth]

£190k

[Crafty_]

RosscoPCole said:

We are buying a house at £550,000, have sold our house at £360,000. Our mortgage company say we can purport our existing mortgage of £135,000. How much would we have to pay for the new house? Is it £190,000 or is it £55,000? The money is no problem as we have inheritance from the sale of my Mum's house last year.

Edited by RosscoPCole on Monday 15th April 19:03

My bold.
Assuming the mortgage is for the property you are selling..

As the lender is letting you port the mortgage, it just means that you can continue to owe them 135k, you do not need to repay this money when the old house is sold.

So, to keep it simple you need to take all the proceeds from the sale to pay for the new house, this leaves you 190k to pay and continue to repay the 135k mortgage you currently have.
Remember you also need money for stamp duty & legal fees at time of completion.