Please help with my stupidity

[Sunshineclouds11]

Hi

Please can someone help with the below, my head is absolutely is mashed.

145k house bought for

35k deposit

90k left on mortgage

210k sale price

What equity do I have?

£120k

210 - 90

£120k

You owe the bank 90k, so with a sale price of 210k, you'll get 120k.

The original price and your original deposit don't matter anymore.

Your equity is the amount you have left when you sell, and pay back your mortgage.

So if you sold for 210, and you pay back 90 mortgage, you are left with 120, which is your equity.

(your deposit is pretty irrelevant now as it’s part of your equity which will have gone up as you would have paid down your mortgage / your property value has gone up)

Although, actually, if you put in a 35k deposit and you’re walking away with 120k it’s relevant as it’s means you’ve made a lot of money/ paid down a lot of your
mortgage :))

Thank you!

I don't know why I've found it so hard to work out 😂🙃

Don’t forget to allow for stamp duty if you’re buying another property.