Remortgaging £100k property

Hi, my house cost me £35k about ten years ago, and has just been valued at £100k. I have about £25k to pay on the mortgage. I would like to move house in the near future, and I would like to buy a house for around £150k. My annual income is £15k - can I use the £75k equity in my current house as a bargaining tool to get a bigger mortgage? (I would have thought that there was little risk to the lender if they lent me £75k when the house is worth £150k, and they will get £75k profit if I get hit by a bus.)

Reply to
jamesjones
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You will be needing funding of 25k to repay your current mortgage plus 50k to cover the difference between sale and purchase prices, plus 1.5k stamp duty plus about 1k in legal fees for sale & purchase, so will be looking at the best part of 80k if you have agents fees and removal costs. You will be pushed to get more than about 45k on your salary, and if you owe money on credit cards they will probably take twice this off your offer unless you have an immaculate credit record.

Perhaps you have a rich uncle who could help out?

Reply to
Adrian Boliston

You could sell now. rent and wait for prices to drop.

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suggests this as one option. You might have trouble selling your house though as people are aware prices should be dropping like a stone some time soon. :)

Reply to
mogga

In message , snipped-for-privacy@124.com writes

They will lend you more than if you had no equity, but on your salary only expect to get up to £60k. Also, do you really think you could afford to repay a £75k mortgage on your salary?

It doesnt work like that. They only get what you owe them, they dont get any surplus equity, it gets given back to you.

Reply to
john boyle

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