Please help with figures!!

[jamtart30]

I'm incredibly ignorant to all this so please bear with...

Our current house is valued at £780k. We have no mortgage on it.

We are looking to move and a new house will be circa £950k so I'll stick with this figure for now.

Say, we sold for £780k, we would need £170k mortgage but obviously the funds for stamp duty, conveyancing etc too.

Would those above costs have to be found separately from the mortgage? Or do lenders give more than the house cost to afford legal costs?

Embarrassed to be asking this...

But they wouldn't be giving more than the house cost unless they lend you more than £950k.
Their sums are done on affordability, the value of the house, and the LTV (loan to value). Even if you borrowed, say, £210k, you'd still have a very good LTV. So, assuming you can afford the mortgage and that the house is worth (according to the surveyors) what you're paying for it, it will be fine.

Thank you @Closetlibrarian

You can mortgage for anything up to 90-95% of the property cost, obviously the higher your loan to value the worse rate you'll get, but even if you took a 250k mortgage your ltv would only be around 26% so that should be fine.

Look at as you'll be keep a bit of your equity back to pay for stamp duty etc rather than getting a bigger mortgage to pay for it. The money you get from the sale of your current property is your equity, and it's up to you how much of that you put towards your new house (assuming you can get a mortgage for the required amount based on your household income.)

By my calculations the LTV would be just shy of 18%.

Yes it would be with a 170k mortgage on a 950k property, sorry I read your OP as 170k plus stamp duty etc

So basically you would put a lower amount towards the new house and keep back the stamp duty (will be a hefty amount at that price) and solicitors fees seperately (don't forget all your removal costs etc).

Yes basically you take a higher mortgage, ie to inc stamp duty etc and then you simply hold back some of your cash for the stamp duty etc, the mortgage will always be against the property.

Don't be embarressed, you are not alone! My husband and I have bought 3 properties and remortgaged 4 times and he still doesn't get it!
It's easier if you break it down into the component parts.
You sell your property for £780k, so in theory without buying another one you would have this in the bank.
You then decide to buy a property for £950k. So you would need to keep stamp duty (£38,750) and moving costs/solicitors costs aside (£7k, for arguments sake). So that would leave you with £734,250. You then go to the bank and ask to borrow the difference between what you have left available and the purchase price - £215,750.

But obviously all of this just happens in one go: your sale, the deduction of the stampduty, the borrowing and the purchase!