I've asked this in another thread but it probably wasn't appropriate there, so i am starting a new thread.
if I were to sell my house for 400k, buy another for 500k I would need a 10% deposit (50k) up front. If I then get a mortgage for the 500-400=100k shortfall should I get the full deposit back on closing ? (The cash could be used for Stamp Duty).
Effectively. the mortgage is for 100k on a 500k valued house. The LTV is only 20%, so the lender is not as exposed as a 92% or 100% LTV ?
Has anyone done this ? Any reasons why it might not be possible to get the deposit back ?
if I were to sell my house for 400k, buy another for 500k I would need a 10% deposit (50k) up front. If I then get a mortgage for the 500-400=100k shortfall should I get the full deposit back on closing ? (The cash could be used for Stamp Duty).
Effectively. the mortgage is for 100k on a 500k valued house. The LTV is only 20%, so the lender is not as exposed as a 92% or 100% LTV ?
Has anyone done this ? Any reasons why it might not be possible to get the deposit back ?