Mortgage maths-next purchase

[Applestrudel71]

I’m trying to figure out how much deposit we will have for next house. This is our first so I’m new to the maths involved.
Bought first house 2021 for £330k
Mortgage of 265k (£65k deposit), 5 yrs initially.
We will have paid off £50k at end of 5 years
So mortgage left will be = £215k
likely house revalue at this point £350.
so… does this mean, if we sell this house for £350 after 5years, we will have £135 deposit for next house?
many thanks

That would be your equity but if you have no other savings you need to factor in fees and stamp duty out of that sum as well as potential mortgage early repayment fee.

As above. That is your equity, but there will be other costs apart from your deposit.

You will need some money for the deposit which does not come from your equity. E.g you sell for £350k and your buyer pays a 10% deposit of £35,000. You buy your next home for £500,000. You need a 10% deposit so £50,000 deposit. Normally you can use the £35k from your buyer, but need the extra £15k to make up the full 10% deposit. You can't get that from your mortgage lender.

In addition to that you need to be able to pay things like a survey and stamp duty land tax up front.

That’s really helpful thank you, for some reason I thought the cash deposit part was first time only, but understand now. I have some inheritance I can use for that so will be fine. Just looking at what we may be able to step up to for the next purchase. Thank you

We've never had that issue with the deposit btw - it's been passed up the chain, ie our buyers deposit was used as the deposit for our onward purchase (even with large jump in house value).