Short term additional mortgage Advice Please

Debras_Angel

We have lost our buyers on our property and are due to exchange on a new build house this week.

We need the funds from our current house for the new one to complete the mortgage. However I was looking at the monthly payments for an interest only mortgage with a 97% borrowing which we could afford if we run both mortgages until we sell ours.

Any advice would be welcome.

bingo_2

The only lender I know of that will allow a new mortgage to complere without redeeming the existing one is Intelligent finance.
The proviso is that your current property must be actively marketed, with a view to selling within 3 months, however they cant hold you to the 3 months.
In other words, they will ignore existing mortgage if solicitor can confirm yourare in process of selling.
( I know I've just posted another reference to IF, but I have no connection with them )
https://www.if.com

dunstonh

Have a word with your mortgage advisor. They should be able to discuss the bridging loan options

payless

bingo wrote:

The only lender I know of that will allow a new mortgage to complere without redeeming the existing one is Intelligent finance.
The proviso is that your current property must be actively marketed, with a view to selling within 3 months, however they cant hold you to the 3 months.
In other words, they will ignore existing mortgage if solicitor can confirm yourare in process of selling.
( I know I've just posted another reference to IF, but I have no connection with them )
www.if.com

Don't worry, you would have to be a really big shareholder in HBoS to benefit
from a couple of mentions !

Debras_Angel

bingo wrote:

The only lender I know of that will allow a new mortgage to complere without redeeming the existing one is Intelligent finance.
The proviso is that your current property must be actively marketed, with a view to selling within 3 months, however they cant hold you to the 3 months.
In other words, they will ignore existing mortgage if solicitor can confirm yourare in process of selling.
( I know I've just posted another reference to IF, but I have no connection with them )
https://www.if.com

I'm with HBOS not IF though and my mortgage advisor mentioned this very thing to me. I'm just not sure if I would get the interest only mortgage without an endowment policy as it really is only till we sell.

Debras_Angel

dunstonh wrote:

Have a word with your mortgage advisor. They should be able to discuss the bridging loan options

The mortgage advisor has confirmed that they don't do open bridging loans.

bingo_2

Intelligent Finance will allow interest only.
It is your responsibility to ensure a method of repaying the mortgage (which can be the proceeds from the sale of another property).
Bridging is an option (as mentioned above) but may work out more expensive, though a lot faster!
You should explore both options