mortgage secured on savings and equity??

jaly

Hi - I am in a position where I have just put my property up for sale, but have one I want to buy and really don't want to miss! I have no mortgage on my existing property and have some savings, but only a low income from my job.

Does anyone know if it is possible to get a mortgage ( it would need to be for about 40% of the new property's value), based on my savings and the value of my current property, rather than on my earnings? I would only want the mortgage until I sold my current property and would then want to redeem it.

surreybased

Hi,

Not sure but they are plenty of brokers on the site who can help. My thoughts are banks are very keen to ensure that you have the funds to repay the loan which with a low income might not be possible. Think you might need to be specific about the amounts..ie value of mortgage needed, annual income.

Not sure what area you're in but if your house is correctly priced I'm sure it will sell quickly so why not focus on getting it sold and not worry about a mortgage.

Is the other property a repossession or is there another reason why the sale has to be sold quickly?

jaly

Thanks for your reply surreybased - yes it would be much better and sensible to sell mine first - it's just the other property is a very good buy in a fantastic location by the sea and is a probate case so there is no chain. My property has been valued at 215k (possibly optimistic) and the one I want to buy is 250k but needs some work. If mine is not sold I would need a mortgage of 80-100k.

dimbo61

If you do manage to get a mortgage and buy the dream home by the sea before you sell your existing home look at getting an offset mortgage so you can pay funds into the offset account !