We've just started overpaying on our mortgage so it costs us less in the long run due to interest. However at some point in the semi-near future, we'd like to move house. With this in mind, should we stop overpaying on the mortgage until we have the cash deposit required for a new property, or can a deposit for a new property be taken from the equity that's been built up in our current property?
Some fictional figures to illustrate our situation:
- Current mortgage value: £150,000
- Expected sale of current property: £200,000
Does this mean we'd effectively have £50,000 deposit (plus any cash reserves) towards a new property due to the sale of our current property, or do we still require a large cash value (of 10-20%)?