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Buying second time round - how does it work

2 replies

Panda368 · 12/02/2021 08:55

Apologies if this is a very stupid question.

We are looking at upsizing and selling our current house - obviously we were first time buyers last time with all the cash for deposit available in our accounts for completion and then the mortgage sorted out the rest of the funds.
From memory we had to transfer the deposit to our solicitor ahead of the exchange of contracts which would be before the equity etc would be released from our current house?

This time we wont have that cash deposit but will likely make about £30k out of selling our house and a further 20k in equity + 17k from our old house deposit so how does it work - we port our mortgage to the new house on completion and the profits from the sale of our old house are counted towards our new deposit automatically?

OP posts:
user1471538283 · 12/02/2021 09:22

It depends how long your mortgage was fixed for if you need to port or not.

Basically you sell your house and find the next one. The same solicitor handles the sale and buy. The money (that you never see) goes through the solicitor.

The solicitor pays your mortgage back and uses your equity as a deposit for your new one.

I usually pay my solicitor £100 on account just in case they need a little bit to start searches etc.

MinnieMountain · 12/02/2021 09:47

As PP said. But your solicitor will tell you exactly how much they need for searches when they send you all their initial information.

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