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Not sure what to do! Help!
mandrose
Posts: 196 Forumite
Apologies for length of this but will try and keep it as short as possible!
Mum & I selling our houses & buying new one together for £339,950. I thought my mortgage of £25K would just transfer over to new house, however found out today this isn't the case - old one needs to be paid off and new one taken out. This is a total shock as almost ready to exchange and I could have gone through this trauma weeks ago!
Planning on converting the garage on new property for Mum and have approx £50K in saving for this!
Called mortgage centre today and went through new application adding on and extra £10K as a cushion to make sure enough for conversion. Mum is 70 this year, so although she is going to be added onto the mortgage her income (pension) will not be included. Problem is I am being made redundant on 30 June and have been told mortgage might not be agreed! Redundancy package £18K+.
Questions: -
a) How likely do you think it will be that the mortgage is declined?
b) Its going to be referred to the lending unit - how long do you think before I hear if approved or declined?
c} To save holding up if completion can go ahead before mortgage is ready (if approved) using savings, asked if I could pay cash before mortgage draws down. Told no as this would be another product and would be a seperate application!
Although we have enough cash to buy outright, this means we might not have enough cash to do the conversion we want straight away. I was going to take a few months off work to get planning etc in place and the building underway before looking for a new job! This won't be an option if we have to use part of the saving for the purchase and means my job search will have to start much earlier.
Both mum and I have only ever lived in the one house, Mum for 46years and me in mine for 23 years. After the stress of the last few months I can understand now why I have never tried to move before!
If anyone has any advise I would be eternally grateful!
Mum & I selling our houses & buying new one together for £339,950. I thought my mortgage of £25K would just transfer over to new house, however found out today this isn't the case - old one needs to be paid off and new one taken out. This is a total shock as almost ready to exchange and I could have gone through this trauma weeks ago!
Planning on converting the garage on new property for Mum and have approx £50K in saving for this!
Called mortgage centre today and went through new application adding on and extra £10K as a cushion to make sure enough for conversion. Mum is 70 this year, so although she is going to be added onto the mortgage her income (pension) will not be included. Problem is I am being made redundant on 30 June and have been told mortgage might not be agreed! Redundancy package £18K+.
Questions: -
a) How likely do you think it will be that the mortgage is declined?
b) Its going to be referred to the lending unit - how long do you think before I hear if approved or declined?
c} To save holding up if completion can go ahead before mortgage is ready (if approved) using savings, asked if I could pay cash before mortgage draws down. Told no as this would be another product and would be a seperate application!
Although we have enough cash to buy outright, this means we might not have enough cash to do the conversion we want straight away. I was going to take a few months off work to get planning etc in place and the building underway before looking for a new job! This won't be an option if we have to use part of the saving for the purchase and means my job search will have to start much earlier.
Both mum and I have only ever lived in the one house, Mum for 46years and me in mine for 23 years. After the stress of the last few months I can understand now why I have never tried to move before!
If anyone has any advise I would be eternally grateful!
0
Comments
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One option is to buy the house outright with your savings, leaving 25k in savings left. Then you can get a mortgage on your new house once you have moved in for 30k or whatever.
Obviously this could run the risk of you moving and then finding getting a mortgage for the conversion difficult but you could go and see an advisor soon and see what they say with the intention of getting the mortgage after the move.0 -
One option is to buy the house outright with your savings, leaving 25k in savings left. Then you can get a mortgage on your new house once you have moved in for 30k or whatever.
Obviously this could run the risk of you moving and then finding getting a mortgage for the conversion difficult but you could go and see an advisor soon and see what they say with the intention of getting the mortgage after the move.
Thanks for the reply Theogirl. My biggest worry is that by the time we move in I will be nearer to my redundancy date or indeed already out of a job! Would that hinder a mortgage application do you think? Although Mum's income won't be taken into account, her income with pensions is approx £1600 a month, so we would never default on the payments. I can't help but be a bit amazed that it might be declined even if my redundancy has happened, as the mortgage is so small in relation to the house value but I understand banks have to be very careful who they lend to these days!0 -
I agree with Theogirl.
And it does seem ridiculous that the mortgage will be so low in comparison to what is owned of the property but I fear that they will not lend to you.
Would another option be a bank loan for the additional funds after you have purchased rather than a mortgage. I know you will pay back more but just another option to consider?0 -
Hmm, a loan is an option I hadn't thought about, thanks for the suggestion! Its taken so long to get to the stage we are at (selling 2 properties and securing our dream house), I don't want to jeopardise it in any way! I'll look into a loan and might decided to postpone the mortgage until a new job is secured.0
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Another thing to consider is that it will take a few weeks to sort out the mortgage (I would have thought at least 2 or 3) as they will want to do a valuation and all the other various checks. That is supposing they would even give it to you. I would definitely visit an advisor to talk through your options.0
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Another thing to consider is that it will take a few weeks to sort out the mortgage (I would have thought at least 2 or 3) as they will want to do a valuation and all the other various checks. That is supposing they would even give it to you. I would definitely visit an advisor to talk through your options.
that was another thing that upset me today as I had paid for a private homebuyers survey which was only done this morning, as hadn't realised I would need a new mortgage which would include a survey!
Thank you all for responding, I actually feel a lot better now!
I think my main priority should be moving into the house, using the cash we have to prevent any hold up on our part! Once in, we can start the conversion with our savings and then complete it once I secure a new job and can get another mortgage!
Thank you all!
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good luck x0
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Have you done the preliminary planning equiry to check it is likely to be approved? Any others converted in the street?
Start looking for a new job now and make enquiries at work about getting let go early with the redundancy payment if you find something.0 -
Blimey, another thing I hadn't thought of! The only thing I have done is speak to the surveyor (before the survey was done) who didn't think there would be a problem. Its a detached bungalow with parking for 4-5 cars, in a road where no 2 properties are the same!
If planning etc was turned down the layout and size of the bungalow still means we could live quite independently, although Mum would be upset as has planned exactly what she would like! I'll make a call on Monday once I get the homebuyers report.
Once I get a completion date I might be more inclined to look for another job asap but at the moment I am holding back as don't want to be in the position of starting a new job and trying to move.
All in all, this weekend is going to consist of taking a deep breath, calming down and thinking carefully about what to do!0 -
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