From: "crocks" 
Newsgroups: uk.finance
Subject: Re: Mortgages and Buying a House
Date: 6 Feb 2007 02:04:56 -0800
   posting-account=VPPAkA0AAADUqN8w7820IiEHWxKdynaE

Hiya

Ok that kinda makes sense, I get confused with mortgages... We dont
really want to hand it over to a broker as there might be a chance we
could use our existing lendor

JC (crocks)

On Feb 5, 11:40 pm, "Tumbleweed" 
wrote:
> "crocks"  wrote in message
>
> news:1170715271.010363.277930@a34g2000cwb.googlegroups.com...
>
>
>
>
>
> > Hi Group
>
> > Prehaps you could help me answer an argument me and my wife are having
> > here,
>
> > Since this is our first "sell" and "buy"
>
> > We are currently selling our house and are looking to buy a new
> > property, From a point of view of deposits and mortgages, Does the
> > system work like this:
>
> > 1) We would Get a deposit from the buyer of our current property.
> > 2) Get a mortgage for the entire value of the new house (100%).
> > 3) The Deposit from the buyer of our property is given as a deposit
> > for our new property.
>
> > I have no idea how the system works, prehaps someone could help me out
> > here
>
> > Thanks All
>
> > JC
>
> You are very probably not going to get a mortgage for the whole value of
> your new house, although its possible, since you should have some money you
> made from your previous one, unless your other name is 'biggirlsblouse'
> (private joke, he may come in shortly)
>
> The general idea is, that you use the equity from the sale of your house to
> fund part of the payment for the new one, and a mortgage for the rest. Lets
> say you bought at 150, sell at 200, and are buying at 300. When you sell,
> you will get 50 (200-150), so now you need a mortgage of 250 for the new
> house.
>
> Whatever your mortgage is, that is separate from the question of the deposit
> which is just there as a guarantee that you wont back out.
> Deposits are negotiable, that is, it used to be 10% or so but as prices have
> risen this becomes more difficult to do, so you need to come up with
> something acceptable to all parties. I cant recall if you can cascade
> deposits up the chain, I think you can, eg lets say your buyer gives you 15k
> deposit, you then add 15k to make a 30k deposit for the house you are
> buying, and so forth, I am sure soemone will be along shortly to say if this
> is the case. In any event, getting hold of this chunk of money before you
> have sold can be an issue.
>
> --
> Tumbleweed
>
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