Trading up. Plenty of equity. Do I still need 20% if I have not sold my existing house?

Hi Cremeegg,
Thank you for your reply and yes i do want opinions as i am clueless when it comes to mortgages so all welcome.

As previous post we are trying to not put our house up for sale first so that is a bit of an issue as in theory we dont have enough disposable income to service 2 mortgages so our thoughts are about clearing our existing mortgage with our savings and starting all over again saving for a 10% deposit. But i am just wondering about this and weather i am missing something as in if im borrowing €280 and the house is worth €290 would the banks look for 10% or can my house be used in anyway?

Plan of action is -
Pay off mortgage on 2nd February as im awaiting on the redemption figure from my bank so should have it by then.
3rd February - Apply for New mortgage (do i need 20% or 10% or just a booking deposit?)
Look for house - have been doing so for 2 years so not hopeful
Start decluttering own house down to bear minimum
Find House .... Put a deposit down? (really havent a clue what happens here....)
Put our own house up for sale
Move in to new house
Do up old house
Sell
Use proceeds to pay off New Mortgage.

Have a holiday :)

So thats the plan.....
 
Yes you do/will need a 20% deposit as you are a second time buyer.

You'll be depleting all your savings to clear your mortgage. Where will the deposit for new house come out of?

You don't have the cash capital to do all you want to do without selling the house.

I think you are putting the cart before the horse.

I would sell the house, rent somewhere until the ideal property comes along and continue to save.

I really think you are over-complicating matters unnecessarily, unless I don't fully understand your plan.
 
Thanks CPM-81 and yes I do tend to stress/overkill on things but I am rethinking everything.... especially paying off our 34k mortgage out of our 51k savings as you rightly point out I wouldn't have enough €€€€ to move....

I'm not in a position to sell up and rent as I have a special needs child so not practical on any level. That's mainly where the quandry is coming from, trying to be as least disruptive and stress free as possible. Hence the clear mortgage... Own our own home...find a new home... Look for as long as it takes....buy....then sell our old house....i don't want to be under pressure re moving out date or homeless.....
I will only need 10% though as we have asked about the exemption and 2 lenders have said yes..

I really do value each piece of advice given and apologies if it seems like I'm going around in circles procrastinating. But this is huge for me and my young family and all on me so I don't want to make stupid mistakes.

I'll update in a few months. Thanks everyone.
 
I think you should speak with a broker. We'd a similar situation and we managed to switch the old house to an investment mortgage and rent it out. We did have 20% deposit but nowhere near the equity you have.
 
Are we getting confused with deposits, in my experience the estate agent does not require 10% is this not to the seller? When I sold my last house the estate agent did not cover his fees from the deposit and instead of them paying the solicitor the balance on the sale it was the other way around which caused a few problems
 
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