Mortgage equity question

[Poppiesway]

I have owned my home for approx 12 years, my mortgage is now about 45k with the house valued at 125k. I need to move (2 bedrooms with 2 dc who can no longer share) I'm a single parent but am on a decent wage for my area (36k).
I've never done the buying selling on my own before and don't know how it all works to be honest. Previously we have a financial adviser who sorted everything out for us.

The house I'm looking at it 190k. What I would like to do if I can is rent out my current 2 bed and buy the new house but I have no savings.

Would the mortgage company accept the equity I have in my current home as deposit or acknowledge the equity I have when applying to a new mortgage?
Is it a remortgage or would I have to apply for a whole new mortgage?

Any answers would be appreciated.. I can't get to my bank for another two weeks frustratingly as they don't work weekends and I'm unable to have any time off.. And if quite like to gain some understanding of how this all works!!
Thank you in advance

No, basically.

You can't use the equity in one house as a deposit on another unless you take it out of the first house.

So with your plan you would have two loans (a mortgage is just a loan). You have a debt of £45k already and this will be subtracted from the amount any mortgage lender is willing to lend you on a second property.

You will also have to turn your first mortgage into a buy to let (this will be dealt with as a remortgage, in all likelihood on a higher interest rate).

You will then want to take out a further £190k loan to buy a second house. So a total debt of £235k on a 36k salary. 6.52 times your gross income. I would say not a hope in hells chance I'm afraid.

Why don't you just take the normal route and sell the smaller home to fund a larger home? Then you'd have an £80k deposit to buy a £190k home. Far more realistic.

A decent broker might just about place it for you.

You have £80k equity, which is just enough for 25% down on each house.

So you'd need to borrow £93kish for the BTL and £143kish for your new home.

If the rent you could command for the BTL is 125% of the monthly mortgage payment for that house then there are some lenders who will consider it 'self-supporting' and ignore it when considering your residential mortgage.

Do you know what rent you could reasonably expect?

Why do you want to do this though? Do you have enough spare income to cover period where you ahed no tenants etc. Do you have the time to manage a second property? Will you have the cash available for immediate repairs etc. Will you be ok doing your tax return or will you ned to pay someone to do it? Do you understand the rules on income tax for your rental income, Capital Gains Tax on disposal?

Borrowing £143k for your new home on a £36k salary as a single adult with 2 DC is where it could get hairy under new affordability rules.

Do you receive CM that could be included in the calculation?

It might just be possible.

Your age, other debts, employment details etc will make a difference.

Play with some mortgage calculators and find a broker.

Just be realistic and buy a nice new house with a debt level that you can afford.

The house sold today was only out in market Monday. So won't be going for it anyway.

I don't receive child maintenance (ex dp is a whole other thread!) I work part time so could always increase my hours or do some locus work if I needed to but I'm comfortable being part time on my wages. I have no other debts.

I don't want a new house, I love old houses. They seem to have bigger rooms, bigger gardens and driveways. I live in a 30's two bed with lovely big gardens and drive way it's just the dc sharing which is an issue (dd1 is 17, ds2 is 9) and have been toying with Having a loft conversion and a conservatory done to gain an room. It was a Victorian terrace house I'd seen in an area where it's rare a house comes up for sale.

I want to stay in my area as good school catchment so think I'll carry on with the loft conversion idea.