How much can we spend if we port our mortgage?

[Chocolatebuttonanyone]

I am bamboozled and disagreeing with DH.
Our house is on the market for 400,000 we owe 100,000 to the bank for the mortgage.
If we plan to port the mortgage to a new house but not increase it, how much can we spend on a new house?
I say 400 plus 100 as the mortgage still stands,
He says 400.
( numbers all adjusted for clarity) Help!

He’s right I’m afraid. You currently own £300K of your house and the mortgage covers £100k. Whatever you buy, those figures won’t change - unless you increase the mortgage.

But if I owe John £10, and sell my bike to Fred for £20, I have 20 and still owe John £10. If I buy a new bike for 20, I still owe Fred £10 and will pay him off.
OK. Think I just answered myself.

Actually I would say it would be less than £400 because you will have stamp duty and moving costs…..

He's right.

For your 400 plus 100 example the bank would need to give you an additional 100.

400 total includes the 100 the bank have already given you, they aren't giving you an extra 100.

he's right. For you to buy a house for 500k you’d need a mortgage of 400. Do you an AIP for a 400k mortgage?

This is very simple, OP! Unless you increase your mortgage, you still only own £300k, the £100k doesn't miraculously get paid off for you 😉 But indeed stamp duty, solicitors etc, means you'll actually have less than £300k in real terms...

For a £500k house, she'd need £200k mortgage.

The 100k mortgage is part of thr existing house value of 400k, it is not additional on top.

E.g. If you wanted to buy a 500k house, you'd need 400k cash deposit or equity plus the 100k mortgage that you're porting. But you've only got 300k equity plus your 100k mortgage.

Unless your house has gone up in value by £100k, your husband is right!

@Hotdoughnut they have 100k equity to use as a ‘deposit’ so surely a mortgage for 400k?

Her OP described it as £100k mortgage and £300k equity, at least that's how I read it.

All depends on what your mortgage was original value for. If value when mortgage taken was £400k and you owe £100k then next house will still be of value £400k. If say you took the mortgage out on your home of value £350k and owe £100k but it's sold for £400k you would have another £50k to add so next home could be £450k. Does that make sense? This is presuming you have additional funds for stamp duty and moving costs!

@Hotdoughnut yes sorry you’re right! I read it the other way round!

I got myself so confused!
Thanks all, even if that means I am wrong!

This.