So Mr Black owes 250k on his property which he agrees to sell for 225. The property therefore has 25k of negative equity.
He then decides to buy a new home for 400k. After paying his 10% deposit, he needs a new mortgage of 385k (360 + the ne of 25). Or does he?
I always assumed my calculations above were correct but on my final loan offer today, the bank say that I need a new mortgage of 360k (250k of my current mortgage +110k required from new property. Are they correct?
***crossing fingers that they're right and I'm wrong.
****And apologies if this is really basic but I'm really struggling to get my head around it
He then decides to buy a new home for 400k. After paying his 10% deposit, he needs a new mortgage of 385k (360 + the ne of 25). Or does he?
I always assumed my calculations above were correct but on my final loan offer today, the bank say that I need a new mortgage of 360k (250k of my current mortgage +110k required from new property. Are they correct?
***crossing fingers that they're right and I'm wrong.
****And apologies if this is really basic but I'm really struggling to get my head around it
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