Is this the right place to ask about selling a house to buy another

[DuelingFanjo]

I have actually done this before - when me and my ex split I sold one house, split the equity and bought a new smaller one for me.

I now have an almost 2 year old and a husband and we need to try and get a slightly bigger house in a slightly naicer area (near better schools, I just found out the school near where we are banned parents from the schoolyard after several of them ended up fighting eachother and throwing bikes around!).

I have about £50,000 equity IF I can sell the house for what I bought it for; I may lose about £10,000 judging by other houses for sale in my street so I think reasonably we will have £40,000.

We would also need to borrow maybe another £50,000 (taking mortgage up to around £140,000) to get a house in the place we want to be.

So far, does this all sound ok. We're lucky right? So why does it seem so scary?

Can I go and talk to my mortgage provider and basically sell my house (If I can) then transfer the mortgage I have to a new property + add a bit. Is that how it works out?

Sorry if this has been a bit of a ramble, I just need re-assurance that this sounds doable and not pie-in-the-sky.

[ThompsonTwins]

Hi there DF. One thing you should not forget (and you probably haven't but just in case) are the fees for selling and buying and stamp duty which IIRC is 1% of the purchase price of properties valued between £125,001 and £250,000 (£1400 on a house bought for £140,000)

It is almost always a worrying process as it involves the largest purchase any of us ever make. My only advice would be to try not to push yourselves to the financial limit... You only need a large bill for repairs or for your car or for one or other of you to lose your jobs for big money worries.

Interest rates have been low so the only way they will go is up (good if your are a saver, bad if you have a mortgage). You need to shop around with regard to fees - sole estate agency cheaper than multiple, see if the solicitor will act for a fixed fee etc.

Good luck!

[ThompsonTwins]

P S Yes, talk to lots of mortgage providers - interview them and don't let them railroad you. Read up a bit before you go - this might be helpful www.moneysavingexpert.com/mortgages/ - they are sales people and they have a job to do but your job is to find the most suitable mortgage deal for you.

[hefalumpbecky]

Hi DF, you don't live in Cardiff by any chance do you- your local school's bike throwing sounds very familiar?!

Check if your mortgage documents say that the mortgage is portable - if so then yes, you can move the remainder of it to a new property (and take out some extra if you need more money). I think most mortgages are portable now, but if you aren't sure you provider will be able to let you know.

We are in much the same position and our provider has endured endless phone calls from me checking these little details, they don't seem to mind!

[DuelingFanjo]

hefalump - Yes! and the school is the nearest Welsh language school to me. Apparently a good school by all accounts but I would like to move from the area.

Thompson, thanks for the advice. DH would like us to stretch ourselves but I would just be happy to move area and get a slightly better garden (and schools!).

Dh is unemployed at the moment but due to start a job in Nov which should hopefully lead to a full time position. This is going to effect what we can do and when but I really want to start being proactive.

[hefalumpbecky]

How strange, this is my nearest school too (unless this sort of behaviour is widespread in Cardiff Schools?!) and we are putting our house on the market in a few months, before we start a family, so I don't blame you!

I think being proactive is a great idea, its always good to get an idea of where you stand and what you can afford before you start looking. If you're not tied into your current mortgagge then you may be able to get a better deal elsewhere, money supermarket is a good place to see what is on offer in your own time with no pressure.

Do you plan to stay in Cardiff, if you don't mind me asking?

[crazyhead]

I'd look at mortgage rates to check if you'd get a better deal changing - depending on whether you have a portable product/would be due to pay redemption penalties. You are close to 25% ltv so rates shouldn't be bad if you can hit that. Good luck!

[DuelingFanjo]

We are hoping to go to Penarth! I think if we look at 3 bed houses in certain areas we might just be able to do it. I went to school in Penarth and did paper-rounds all over so know it really well and know that there aren't really any very bad areas plus the schools are all very good plus my mum lives there.

Our problem is that I know the prices have dropped in our street and although I am lucky that I was able to put down a good deposit when I bought we will probably lose some of that.

It's worth it though.

We are really near the Royal oak.

My current mortgage rate ends next june so I was thinking if I did change I could do it then.

[hefalumpbecky]

Not far from me then, I'm right by the school! Penarth looks lovely, I did consider it but don't know it well at all, so a bit cautious over knowing which bits, if any to avoid!

Yes, when your fixed rate ends would be a great time as you can avoid any early redemption fees and like crazyhead said you should be able to get a good rate with your deposit - it sounds very doable and not pie in the sky at all. Not sure if you have been on money supermarket before, but if not it also gives you a good idea of what lenders will let you borrow based on yours and your partner's salary - whcih is really helpful.

It is all very stressful, but will be totally worth it when you are living somewhere nice and peaceful where people don't throw bikes at each other!

[DuelingFanjo]

To be honest I don't think Penarth has any really bad areas. I think there is a lot of snobbery within Penarth about where you live so that might effect the way kids are treated in school; I do remember that there was a bit of a divide between the wealthy and the council house kids and I was bullied a bit and really did sense the divide but actually quite miss the area.

It's good in that it's separated from Cardiff, it has the prom, parks, good links etc. We will probably be considering ex-local authority houses as they are cheaper but have large gardens.

Thanks for the help and advice :)