Using equity for your next house deposit
See how equity released from your current home can fund the deposit and costs on your next UK property purchase.
The key is to estimate how much equity will actually remain after the mortgage and selling costs are cleared.
How the money normally flows
On completion, your conveyancer receives the sale proceeds, repays the existing mortgage and settles transaction costs. The remaining balance can then be used toward the new purchase.
Example
If your sale releases £135,000 of usable equity and you plan a £70,000 deposit, the remaining £65,000 may help cover property tax, legal fees, moving costs or remain as cash after completion.
Should you use all of your equity as the deposit?
Not necessarily. A larger deposit can reduce the mortgage required, but moving costs and an emergency cash buffer also matter. MoveBudget is designed to show the whole transaction rather than treating the deposit in isolation.
Costs to allow for before deciding the deposit
- Property transaction tax
- Buying and selling legal fees
- Survey and lender fees
- Removals
- Mortgage redemption charges where applicable
Bring the numbers together.
Take what you’ve learned here back to MoveBudget and see what you’ll actually need in the bank.
Back to MoveBudget →