Financial Outlook Ltd.
- 1000
- Great West Road
- Brentford, Greater London, TW8 9HH
- 0% of answers helpful
- 9 posts
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Specialisms
Insurance:
General Insurance, Life Insurance and Protection
Mortgage:
Remortgage (Uk Residential), Mortgage (Uk Residential)
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- Commission
Qualifications
Level A Qualifications:
Level B Qualifications:
how much deposit is needed for a £63000 house?
- oden911 asked 1 year ago in Mortgage
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Is it possible to get a self certification mortgage?
- robertsmith asked 1 year ago in Mortgage
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Hello, I bought a one-bedroom flat in 1997 for £45k in London. It's now valued at £235-275k. I owe the mortgage lenders less than £30k.
- findingaway asked 1 year ago in Mortgage
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Expert Financial Adviser Answer
John Stirling
answered 1 year ago
Well, if yours is worth £275k, and the one you are looking to upgrade to is £350k, then your new mortgage would be [cost of new property] - [achieved selling price of your home] + [your existing mortgage] + [costs of buying/selling/moving] - [any existing cash you have].
So to put some rough numbers in;
£350k - £275k + £30k + £18k - £0 = £123k
I am pricing stamp duty at 3% of your purchase, and selling costs of 1.5%, and a bit for legals/moving/etc, and assuming you have no spare cash to put towards it.
So that would mean your new mortgage would be £123k, which over 25 years would be around £615 pm assuming a 3.5% interest rate. If rates rise that could go up a lot.
Obviously if yours doesn't go for that much then your new mortgage, and payments, would be more.
As to whether that is beyond your reach - you don't declare your income or expenses, so it's a little difficult to say whether that is possible, or affordable - but it isn't ridiculous compared to many (or my) mortgage, but it is quite a big jump from where you are now.
Does that help?
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So to put some rough numbers in;
£350k - £275k + £30k + £18k - £0 = £123k
I am pricing stamp duty at 3% of your purchase, and selling costs of 1.5%, and a bit for legals/moving/etc, and assuming you have no spare cash to put towards it.
So that would mean your new mortgage would be £123k, which over 25 years would be around £615 pm assuming a 3.5% interest rate. If rates rise that could go up a lot.
Obviously if yours doesn't go for that much then your new mortgage, and payments, would be more.
As to whether that is beyond your reach - you don't declare your income or expenses, so it's a little difficult to say whether that is possible, or affordable - but it isn't ridiculous compared to many (or my) mortgage, but it is quite a big jump from where you are now.
Does that help?
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