Mortgage - brain baffled! Help!

[bellswithwhistles]

Ok.

I'm being stupid. But getting confused.

Our mortgage is £150k

Our house is worth £300k (ish)

We want to buy a house that's up for £390k.

Say our house sells for £300k how much more do we need to borrow?! (i've managed to convince myself that I've got £300k for the house, I can keep the £150k mortgage and simply have money left over but I'm sure that's not the case!!!)

And how do you ensure you have enough cash left over to pay the stamp duty, the solicitors fees and the moving fees?

Can someone put this in idiot's language for me please :)

Sell for £300, you have £150 equity. Use some of the equity to pay fees etc and put down the rest as a deposit (say £130 for example) and then have a mortgage for £390-130=260Either port your existing and borrow more or consolidate the whole lot. Which is usually cheaper, depending on early repayment charges.

If you sell your house for £300k you will release £150k equity. Most people will use this £150k as a deposit for the new house so you would need to borrow £190k.

you need to speak to a mortgage advisor, or mortgage broker, because it simply doesn't work like that

The mortgage you can get is the one you are offered, nothing more and nothing less.

For example
I have a house worth 100k and am paying £500 a month mortgage

I find another house worth 80k, which I want to b=move to, so I can reduce my mortgage to £400 a month

I have to be accepted for the second mortgage - the fact that it is smaller than my current mortgage is irrelevant, the fact that I have been paying the £500 mortgage without any problems from 10 years is irrelevant.

I am no older than when I took out the first mortgage, I am a different person, my employment is different, the housing market is different.

I am unable to move, as the only mortgage I can get is too small for the house I want, even though it is smaller than my current house, and my payment would be smaller than my current payments

You can't buy a more expensive house and have money left over.

150k of the value of your house belongs to the mortgage company. You'll only get 150k equity, not 300k. Your mortgage will increase by at least 90k because that's how much more the new house is, probably more if you need some of the equity for fees.

Sell house for 300,000.
Pay off mortgage of 150,000.
Leaves you with 150,000 cash.

Suggest keeping back 20,000 for fees, stamp duty, moving costs, bits of spending initially on house.
Leaves you with 130,000 desposit for new house. 390,000-130,000 means 260,000 mortgage.

(Unlessyou have enough cash for all the moving costs, when you can put the full 150,000 as a deposit and take a 240,000 mortgage).

If you can sell the house for 300k, then you have 150k towards the new house.

I don't know if you got other savings to cover the new stamp duty /legal fees.
But let's assume you put the whole 150k towards the new 390k house, then you will be looking at a 60-65% LTV mortgage which very good. A lot of people only put down 20% deposit depend on your monthly income!

How does this add up to the £390k purchase price?

@Nimbostratus100 most of us are older than we were last time we took out a mortgage!

PP has spelled it out. Conceptually we did it the other way round, we ported our 150k mortgage to the new property and took out a second mortgage for the different in sale prices (90k) plus a bit extra to cover fees (say £20k). So we ended up with 2 mortgage pots of 150k and 110k which add up to £260k as @CatOnTheChair says. Both mortgages have to be with the same lender if you port. You could alternatively just redeem the first mortgage and start a new lender elsewhere

You will need a Mortgage for approximately £220-240k depending on how much you ise for fees and conveyancing. Can you afford a mortgage of this? Is it approximately 4.5x your salary less debt and children.

THANK YOU! I honestly thought I was going nuts.

Basically, our £150k mortgage is with HSBC and it's portable and fixed at 1.3% so we're obviously keeping that bit.

So I need to borrow another £110k with HSBC at whatever the new rate is they can offer??

To answer people's questions - I only take home £1k a month but husband earns £6k a month (sometimes more with commission) so I think it's perfectly doable.

Obviously hoping to get the full £300k for our house and get the house we want cheaper than £390k.

We don[t know how much of the current mortage has already been paid off.
If 50k have already been paid, if OP sells the house for 300, then only 100k needs to go to pay out the remaining mortgage, meaning theres 200 leftover for the new house.

Again, it all depends. An almost paid out mortgage will mean more money leftover to buy the new house.

@ASGIRC I'm assuming the £150k OP mentions is what is left on her mortgage.

OP yes exactly! You could get a broker or your own spreadsheets to do the maths but it's very likely that staying with your 1.3 deal will be your best bet.

I've got £150k left on my mortgage - it was originally for £200k

Take advice from a mortgage broker, they can advise you on what suits you best.