second time buyers dilemma

[deanosmrs]

We have a 3 storey terrace house, and a mortgage on it for �112,000 weve been in it for 5 years.We want to sell it and buy somewhere with a bigger garden, own drive etc.Anyways, 2 estate agents have given us conflicting advice, 1st says we are looking at at least 20% down on new house and the 2nd one says 10%.We had it valued today for 119,000, by the one thats told us we only need 10% down.So how do we get the extra, i mean do we go to our bank who we have the existing mortage with and grovel for the extra help, or what sorry to sound thick but need advice on motgage side of things.We understand about all the estate agents fees and home package fuel efficient pack rubbish and all that. Thanks for reading x

[deanosmrs]

Thankyou zacmaster, for that, very helpful, and eye opening the same time ! we are looking at propety in the region of 139,950.So major grovelling to the bank i suspect.

[jake-the-peg]

Er Am I missing something here?

If you need an extra �4900 to get to a 10% deposit - you can't add it to the mortgage because that's what the deposit will be on!

That's what a deposit is - money that you're not borrowing on the mortgage

If you're trying to borrow �139,000 and you've got �7,000 deposit you have a 5% deposit

if you need to get 10% you'll need to borrow another �7K from a different source

[deanosmrs]

Ah conflicting advice again ! now im more confused

[CheekyChops]

Yes I agree with jake-the-peg.

If you have �7,000 left over from the sale of your existing property then you obviously don't have a 10% deposit and will need to get the extra funds from elsewhere. Most lenders will ask where a deposit comes from and using a loan is usually not allowed.

It doesn't look to me like you can afford to move at present, not to a more expensive property anyway.

[lil123]

I would just go to a mortgage adviser at your bank and they will tell you all you need to know

[Panic Button]

If I were looking for a mortgage (which I'm not) I wouldn't go to my bank for advice. I don't trust them to have my best interests at heart.

I would go to an independant financial adviser / mortgage broker.

[ummmm]

Plus you won't have 7k once all the fees are taken out.

[Nosha123]

I dont believe a bank will allow you to borrow a deposit... whether it be a loan or mortgage... they will want to see actual funds of your own..

[deanosmrs]

Thanks for all your answers, Nationwide have been in touch and we have been told that, first its a portable mortgage, we have more than �7,000 profit and she sees no reason why we cant borrow up.So its looking a tad better, but thanks for all your replies x