# Mortgage & House-moving



## snapsnap (Jul 18, 2008)

Guys, 

A simple question on mortgages and housemoving

House bought for £150k, now worth 180k. £40k of the mortgage has been paid of, leaving £110k on the mortgage.

When you move into a more expensive property, where does the mortgage payment of £40k 'go'? Would it form part of the deposit for the new place?


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## Gruffs (Dec 10, 2007)

I think if you have been paying your interest as well, you would sell your house for £180K and have £110K left to pay on your mortgage. This would leave you with £70K from the sale as deposit on the next house.

I'm sure there will be early settlement fees and so on so you won't see the full £70K but that should be how it works.


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## The Cueball (Feb 8, 2007)

you get that money back to do what you want with, so yes you could use it as a deposit...

lets say you sell the house for 180k

that get's paid to your laywer, who then takes their fees, pays back your mortgage lender (in this case 110k) and any other fees, then deposits the balance into your account...if you are keeping the higher mortgage with the same lender, it may not "happen" like that, but it's basically what is going on.

:thumb:


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## snapsnap (Jul 18, 2008)

Thanks both

Pretty much confirmed my thoughts


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## Gruffs (Dec 10, 2007)

The Cueball said:


> you get that money back to do what you want with, so yes you could use it as a deposit...
> 
> lets say you sell the house for 180k
> 
> ...


Just on that note Cuey.

If you were to have that figure flash through your bank accounts for a couple of days, you would earn interest on it wouldn't you? I bet that is what the mortgage lenders are going to do with his money.

Mentally logged that one for sale of house time.


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## The Cueball (Feb 8, 2007)

Gruffs said:


> Just on that note Cuey.
> 
> If you were to have that figure flash through your bank accounts for a couple of days, you would earn interest on it wouldn't you? I bet that is what the mortgage lenders are going to do with his money.
> 
> Mentally logged that one for sale of house time.


You should, yes....

Not uncommon for the lawyers to "hold" the momeny for a few days either...

And something else to consider.... when my ex sold her house, and went to get her new one sorted, the lender said that she had made too much money, and demanded that she use it as a deposit for the house...

i.e. they were willing to give her 100k (for example)
but when they found out how much she had made, would only lend her 70k, basically forcing her to use the money to fund another house...

Just something to be mindful of....

:thumb:


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## Gruffs (Dec 10, 2007)

What!!!!!!!

So they made her pay less interest by lending her less? Sounds a bit bent even for a lender that.

I suppose that ties her money up in the house which she might be the victim of a market crash.


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## The Cueball (Feb 8, 2007)

Gruffs said:


> What!!!!!!!
> 
> So they made her pay less interest by lending her less? Sounds a bit bent even for a lender that.
> 
> I suppose that ties her money up in the house which she might be the victim of a market crash.


Yeah, all very strange....

She went with someone else in the end....after asking over and over for someone to explain WTF!?!?!?!

:lol:

:thumb:


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## Jace (Oct 26, 2005)

Gruffs said:


> Just on that note Cuey.
> 
> If you were to have that figure flash through your bank accounts for a couple of days, you would earn interest on it wouldn't you? I bet that is what the mortgage lenders are going to do with his money.
> 
> Mentally logged that one for sale of house time.


You'd also get a call from the bank offering you a better account & a dealnon investing your cash to a higher interest acc

Always happens to me


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## rosehusten (Aug 8, 2011)

I think the remaining amount is used as interest!

http://www.financeninvestments.com/economics/us-treasury-news.html


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## Bero (Mar 9, 2008)

rosehusten said:


> I think the remaining amount is used as interest!
> 
> http://www.financeninvestments.com/economics/us-treasury-news.html


Irrelevant for so many reasons!

The sale and buy are two separate transactions so you would 'get' the £70k (Value - outstanding mortgage-costs) from your sale.

Then you can decide how much deposit you put down on the new property - it could be £50k, £70k or you top it up to £80k+ This is normally all handled by your solicitor who may sit on your £70k for some time (making him £30-50 per week).


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