Clueless - but I know you know!!

rob_kzk

Hi All,

I'm in the middle of selling my flat and buying a house with my girlfriend but everything's gone wrong in the last day. The buyer of my flat has pulled out at the 11th hour after we've spent 12 weeks getting to the position of where we were about to exchange, and at the same time we were about to exchange on a house we have fallen in love with.

I've got a mortgage for my flat in my name with the Halifax (just over £26K) and we've got a mortgage offer for our new house with the Bank of Ireland. The trouble is we were going to pay off the halifax mortgage and pay the deposit for the new house (£35K) to the Bank of Ireland with the proceeds from the sale of my flat which now isn't going to happen until I get another buyer.....but we really want this house we have seen.

I've spoken to London & Country and they have said that they're going to see if we can get a mortgage for a major part of the purchase price of the house (£141K) and enough to cover my Halifax mortgae from the Bank of Ireland, therefore increasing what we will borrow to £167K.

Is this the best way to go about things until I've sold my flat? I was thinking that I would be paying less if I kept my Halifax mortgage for the flat and then just borrowing separately the £141K for the house from the Bank of Ireland. Is this possible? Do they take into account the fact that the Halifax mortgage is in my name and the house will be in both our names?

Just to give you an idea if we were to borrow £167K that would be 3.8 times our joint income.

Is there a better way to cover all the finance until my flat is sold?

Thank you very much for your help.

Rob

herbiesjp

I think a little more information will be needed here to look at the scenario/options.

The property values would help to understand the situation a bit more clearly

rob_kzk

Ok, sorry!

The flat has a mortgage of £26,000 on it (this is the amount I will need to repay to Halifax eventually, but it needs to be covered at the moment as I now haven't got a buyer for the flat).

We are buying the house for £148,500 but L&C have suggested that we should get a mortgage for £141,000 on it as this keeps us below the 95% mark and we would be able to get better deals.

As I understand L&C are going to look at getting a mortgage for us of £167,000 (£26,000 flat + £141,000 house).

Is this the best way of doing things? Is there a reason that we can't have two mortgages??

If there's anymore information needed please let me know.

Cheers

Rob