Any mortgage experts on here?
Discussion
Hi,
After a little help.Apologies for sounding dumb in advance!
We have owned our house for around 12 years and we are looking to put it on the market in the next couple of months after we do some general decorating,replace back door and some other bits.
Now,we love the area we live in and was only saying on Monday that we would like to stay in the close where we live but move to one of the bigger houses then bugger me,one has come on the market yesterday and well within our budget so I have arranged a viewing tomorrow.
If we like it and make an offer which is accepted,what would be the best way of financing it bearing in mind ours is not even on the market yet.I think the options are:
Put ours on the market straight away with a discount to allow for the bits which need doing,
Get a fresh 90% mortgage on the proposed new house and keep our current mortgage going until current house is sold then pay a lump off the new mortgage (approx 80k).This is do-able as our current deal is only 0.99% and with our combined income (75k) in theroy we should be able to secure the fresh mortgage and continue to pay our current debt.
I'm just a bit concerned that the current vendor will want a quickish sale and may be unwilling to wait for ours to be sold first.My idea was to sell ours first then look for another house rather than the other way round!
Just to put it into context,there are 60 houses in our close and out of these only 3 are the larger ones.In 12 years this is the first one I've seen come up for sale.
Any ideas/comments welcome!
Thanks.
After a little help.Apologies for sounding dumb in advance!
We have owned our house for around 12 years and we are looking to put it on the market in the next couple of months after we do some general decorating,replace back door and some other bits.
Now,we love the area we live in and was only saying on Monday that we would like to stay in the close where we live but move to one of the bigger houses then bugger me,one has come on the market yesterday and well within our budget so I have arranged a viewing tomorrow.
If we like it and make an offer which is accepted,what would be the best way of financing it bearing in mind ours is not even on the market yet.I think the options are:
Put ours on the market straight away with a discount to allow for the bits which need doing,
Get a fresh 90% mortgage on the proposed new house and keep our current mortgage going until current house is sold then pay a lump off the new mortgage (approx 80k).This is do-able as our current deal is only 0.99% and with our combined income (75k) in theroy we should be able to secure the fresh mortgage and continue to pay our current debt.
I'm just a bit concerned that the current vendor will want a quickish sale and may be unwilling to wait for ours to be sold first.My idea was to sell ours first then look for another house rather than the other way round!
Just to put it into context,there are 60 houses in our close and out of these only 3 are the larger ones.In 12 years this is the first one I've seen come up for sale.
Any ideas/comments welcome!
Thanks.
The open market is slow at the moment, instead of going through the EA`s, give your neighbours a knock and see what their circumstances are. They may be in a position where they want to downsize but don`t want to commit to anywhere until they secure a buyer. Let them know your position and put an offer in.
Offer them a small reservation fee to secure and then sell yours.
I`ve have solicitors who can draft this legally so the vendor won`t sell it to anyone else and you don`t lose you res fee.
Offer them a small reservation fee to secure and then sell yours.
I`ve have solicitors who can draft this legally so the vendor won`t sell it to anyone else and you don`t lose you res fee.
helmutlaang said:
Get a fresh 90% mortgage on the proposed new house and keep our current mortgage going until current house is sold then pay a lump off the new mortgage (approx 80k).This is do-able as our current deal is only 0.99% and with our combined income (75k) in theroy we should be able to secure the fresh mortgage and continue to pay our current debt.
It's not quite as simple as this. Firstly most lenders will ignore that your current mortgage is on 0.99 and therefore your payment is low. Assuming your on a lenders variable rate, this still has the potential to go up. Therefore it is the balance of the total mortgages that you will hold Vs your income that will they will use to decide if you can afford to maintain both mortgages.Also, with regards to overpaying the £80k upon sale of the current property, at 90% most products will have an overpayment limit of 10% of the balance so you are unlikely to be able to over pay the full £80k off the mortgage.
BuzzLightyear said:
If I have understood your position correctly, you could consider letting your existing house, the rental income of which could pay your mortgage on that one, possibly with a bit left over. If so, you could move to the bigger house quickly and keep the present one as an investment?
He could, it depends if he needs the £80k out of the property to make the new purchase affordable 
He would also need to move current mortgage on to a BTL product (to do so he'd need to leave 25% equity in the property) or get consent to lease from current lender.
Edited by Sarnie on Thursday 13th September 09:22
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