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Hypothetical situation: downsizing and finances

Hello. I am 40 and live with my parents, both 70. We have casually talked about the possibility of downsizing one day. A big concern is finance. We live in a 3 bedroom terrace. The ideal basic to look at would be to move into 2 flats, one being a 2 bed and the other a 1 or 2 bed. Whats the ideal way to finance the flats if this ever happened? I'm guessing our house is worth £500k and 2 flats being worth a total of £700k? Would we buy one with cash and put a huge deposit on the other with years of minimal mortgage payments for the other? I bring home £1500 a month from my job so not a huge earner - would I be able to get a mortgage? Probably sound like really dumb questions, but I gotta get an idea of where to start

Asked on May 11 2018, Home Finance in Hertfordshire | Report content

Answers (1)

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  • Hello Del, Not dumb questions at all. I think it would be best to speak to a few mortgage brokers about what your options are here. Much would depend on how much equity you have left in the existing property. The idea of buying cash could be a good idea - the mortgage broker will be able to inform you what kind of value of property you can buy (which will be based on your income as well as the deposit). Remember to factor in moving costs, legals, stamp duty etc. as well. Feel free to post any other questions here. All the best with your plans. Thanks, Ruban

    Answered on May 14 2018, Report content

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