How to buy house before selling this one

Penny35_2

A house has just come on the market that we love. It is a reposession. We would like to make an offer on the property, however we have not put ours on the market.

Dont want to lose this property as it is a bargain price due to credit crunch, & repossion & old owners took lots out incl the bath !!!

I have heard people talk about bridging loans but dont know how they work, we would effect for a time have 2 mortgages how does this work, would bank be happy.

Our current home realisitc selling price is £180, 000 (was about £200,000 before credit crunch) new house I would like to get for £180,000

Any help please..

Thanks

Cliveski2009

I would be suprised if the credit crunch has only reduced your property from £200k to £180k - surely it has had a bigger impact than that?
If you advertised it at £180k you can expect offers of £160-£165k as everyone is after a bargain.

I guess there is no harm in making an offer on the property you have seen but unless you have yours on the market I doubt they would entertain it.

Not sure bridging loans are available in today's market? it would be unwise.

Sorry I can't be more positive about it all !!

maninthestreet

Penny35 wrote: »

A house has just come on the market that we love. It is a reposession. We would like to make an offer on the property, however we have not put ours on the market.

Dont want to lose this property as it is a bargain price due to credit crunch, & repossion & old owners took lots out incl the bath !!!

I have heard people talk about bridging loans but dont know how they work, we would effect for a time have 2 mortgages how does this work, would bank be happy.

Our current home realisitc selling price is £180, 000 (was about £200,000 before credit crunch) new house I would like to get for £180,000

Any help please..

Thanks

When did you buy your current property, and what price did you pay for it (£200,000?) ?

alexlyne

We are buying a home whilst keeping the old one. It's possible by ensuring the LTV of your current property is to the banks liking - this is judged on what they think the house is worth, which may be different to your expectation. Also then to get a second mortgage, you will need a deposit for new place (obviously), but also you'll need to do an income multiplier of your earnings, minus what you pay out on the mortgage and other loans.

We are aiming to put our house on the market as soon as we 'win' a new house.

Go speak to your lender and see what they can do for you.

sham63

With the stamp duty-free level at £175,000 it's unlikely you'd get £180,000.

Gwhiz

Bridging loans are very expensive typically. Can you afford to service 2 mortgages? What if you lose your job? What if you can't sell your house? Risky!!!

chickmug

Sorry but what you are asking is just not really feasible. Over the years we had many who said 'no need to sell' as they would be getting a bridging loan. This was based on the more 'easy to get' bridging loans many many years ago. We insisted that people were able to prove they would be able to get this sort of loan and statiscally no more than 1 in 20 did but the vast majority realised they couldn't.

Penny35_2

maninthestreet wrote: »

When did you buy your current property, and what price did you pay for it (£200,000?) ?

We bought it when it was built 12 years ago for substantially less than it is now worth..

Have done the income multiplier and am going to speak to lender I think it is very possible we can get two mortgages, we will try to change existing mortage to buy to let and rent current property out until market increases.


Thanks for all your input.

my_two_boys

Hi,
We did this a couple of years ago when we relocated 200 miles away.

We ended up getting a let-to-buy mortgage on the new house, and the estimated rental income for the old house was taken into account when assessing our ability to pay both mortgages.

We never did bother renting out the old house - just sold it a few months later when we were settled.

Also, have you spoken to your mortgage lender about a payment break? We got a 12 month 'holiday' which meant we had spare money to help us move.

HTH

Faye