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  • FIRST POST
    • Barrybados Spurs
    • By Barrybados Spurs 4th Sep 17, 2:05 PM
    • 3Posts
    • 0Thanks
    Barrybados Spurs
    Corporate sale
    • #1
    • 4th Sep 17, 2:05 PM
    Corporate sale 4th Sep 17 at 2:05 PM
    I am really hoping somebody can give me a little bid of help! I am living in a house valued at £360K which is mortgage free. I am about to retire and have found the house that we really want but it is a corporate sale at around £290K and is subject to 'open bids'. The Estate agent working for the corporate client tells me I have to be able to 'proceed' if they are to put my bid to their client. The only way of being able to proceed is by being a cash buyer or have a purchaser for your house who is not in a chain and is ready to move. I cannot fulfil this criteria; my house will go on the market tomorrow but may take a couple of months to sell. I do not want to take out a bridging loan because of the cost. Can I take out a mortgage with no early redemption fees and pay it back within two months when I sell my house? Or is there another alternative? I have some savings and would need to borrow abot 75% LTV.
Page 1
    • Lilla D
    • By Lilla D 4th Sep 17, 10:01 PM
    • 308 Posts
    • 154 Thanks
    Lilla D
    • #2
    • 4th Sep 17, 10:01 PM
    • #2
    • 4th Sep 17, 10:01 PM
    The answer will depend on your age, income, outgoings, credit history, the property itself, your partner's situation (you mention "WE", so I assume that there's a partner who could also considered), etc. etc. etc.

    In theory what you're asking for is possible, but reality can only really be checked once you talk to a broker discussing all the details. Here we can only say that IN THEORY your proposed route is possible, as lenders allow 75% for a second resi home(subject to T&Cs) and there are deals out there with no early repayment charges, but IN REALITY it may not be possible based on the actual case details.
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Barrybados Spurs
    • By Barrybados Spurs 5th Sep 17, 8:02 AM
    • 3 Posts
    • 0 Thanks
    Barrybados Spurs
    • #3
    • 5th Sep 17, 8:02 AM
    Thanks
    • #3
    • 5th Sep 17, 8:02 AM
    Thanks for your reply. There are two of us with earnings of around £80K. I have done an online application to the AIP stage with santander which is over 9.2 years (because of our age) - on the details within the application they will loan £220k required. But this online process did not include the fact that I only want the money for a couple of months until I sell my house. I can cover 25% deposit of the purchase price, now £291K and by later this week I will have my current house on the market for £360K but the corporate client will not entertain a bid from somebody waiting to sell a house, hence I have to secure a mortgage. I am going to talk to a mortgage broker but I can't see that a lender would want to lend £220K for what is likely to be only 2 months or so. I think its more likely that I will have to let this house go and look for another that does not have the complications of a corporate sale and the bidding process that goes with it. Thanks again.
    • silvercar
    • By silvercar 5th Sep 17, 8:38 AM
    • 35,871 Posts
    • 151,042 Thanks
    silvercar
    • #4
    • 5th Sep 17, 8:38 AM
    • #4
    • 5th Sep 17, 8:38 AM
    .....I can't see that a lender would want to lend £220K for what is likely to be only 2 months or so...
    As long as there are no redemption penalties, you can take a longer mortgage. Safer really, as you don't know how long it will take to sell your home.
    • kingstreet
    • By kingstreet 5th Sep 17, 9:49 AM
    • 31,929 Posts
    • 17,060 Thanks
    kingstreet
    • #5
    • 5th Sep 17, 9:49 AM
    • #5
    • 5th Sep 17, 9:49 AM
    If you apply to Santander you will have to state the purpose of the lending and your requirement is an automatic decline as it won't offer short-term lending.

    You should appoint an independent broker to advise you before you do anything else.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Barrybados Spurs
    • By Barrybados Spurs 6th Sep 17, 9:31 AM
    • 3 Posts
    • 0 Thanks
    Barrybados Spurs
    • #6
    • 6th Sep 17, 9:31 AM
    • #6
    • 6th Sep 17, 9:31 AM
    Thanks to everyone for their comments. This problem was casused simply becasue the vendor would not accept any bids from buyers selling a property to purchase. In the end I was able to secure an offset mortgage but eventually decided against proceeding because I would be incurring significant fees and interest that I wouldn't incur if buying a property on the more traditional buy/sell manner. I have withdrawn from the bidding process. Thanks again.
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