It might produce fits of laughter amongst some but I've recently discovered that i don't know how remortgaging works having been a homeowner for a number of years, but never having actually moved house!
I'm hoping someone can put me out of my misery and explain the difference between equity and a deposit for the next purchase since they seem to be the same thing to me (albeit that the equity is speculative based on how much you can sell your property for i guess)?
For example, if my house is worth £250k and i have an outstanding mortgage of £150k then i have £100k profit which can be applied as a deposit for the next mortgage....correct?
Or is it more sensible for me to be putting my pennies under the mattress so i have the £100k in cash to buy the next place?
I'm hoping someone can put me out of my misery and explain the difference between equity and a deposit for the next purchase since they seem to be the same thing to me (albeit that the equity is speculative based on how much you can sell your property for i guess)?
For example, if my house is worth £250k and i have an outstanding mortgage of £150k then i have £100k profit which can be applied as a deposit for the next mortgage....correct?
Or is it more sensible for me to be putting my pennies under the mattress so i have the £100k in cash to buy the next place?
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