New mortgage

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Hi lovely mumsnetters,

I can’t seem to find the answer online and too embarrassed to ask in RL so I am turning to you!

we have a property with a decent amount of equity. We would like to buy a bigger property and I know we can use the equity to pay forward as a deposit on the next house but wondered if we could use the equity from it for other things too? like our stamp duty costs, pay off some debt, agent fee?

it would really help out and mean we finally get to move and have more space.

thank you

If you aren't using all equity as deposit then you can use the rest as you wish.
Yes, it can be used towards stamp duty etc. It will be your money

I have called up my bank and the two people I have spoken to don’t seem to know themselves..

Moneysaving expert is great for this type of info

You can use the excess equity for whatever you like.

If the property you’re selling is £100,000 (for easy maths) and the property you’re buying is £200,000. Say you have £60,000 in equity and your mortgage requires a deposit of 20%. You’d have to use £40,000 of the equity on the deposit. The remaining £20,000 in equity can be spent on anything you like.

Thank you @SunshineAndMonsteras , I suspected it worked that way but don’t want to assume and be told other wise waaay down the line.

I'm not sure how it could be otherwise though? It's your money. If you had £100k equity in your current home, no one can force you to use all of it towards your new home, provided you meet the minimum deposit requirement for your new home/mortgage.

So I decided to call my bank up and they said yes your money etc.however. If we port our mortgage and borrow more it would need to be calculated on affordability. We have also tried to release equity from this bank before and their list of ‘acceptable’ things we can spend money on is limited. So we were not able to.

i think we will be ok but glad I checked. This part is not spoken about much

Yes this is exactly what we did! My partners house had a lot of equity so when we upsized and bought together we had a lovely pot of money to do the house up with. The deposit was my savings.