Buying and selling our house and making up shortfall!

bozzy18

Hi, our house has been on the market for a month so far and no viewers. WE've already dropped the price. Where are we going wrong?

We've had an offer accepted on a new house we are keen to buy.

We calculated that with our mortgage (portable and not renewing as early repayment charges would apply), proceeds of sale of our property, solicitor costs, stamp duty, agents fees and moving costs, our savings etc, we will have a shortfall of around 12k.

We intend to take out a bank loan for this and when our fixed rate period expires in 2 years time we take out a new mortgage to pay off exisiting mortgage and loan. Is this do-able?

Will we be able to get a loan for this reason? Our credit history is excellent so we should'nt have a problem.

Thanks.

Boz

Doozergirl

The bank loan will have to be taken into acount when calculating the affordability for your mortgage. Not so much of an issue if you're well within salary multiples, but if you're right at the limit, then the amount you can borrow on a mortgage may be reduced in line with the amount you borrow on the bank loan. Not sure the bank would like 'deposit for a new house' as a reason for a personal loan either, it tells them a story...


Are you expecting your new house to be worth more in a couple of years time to enable you to borrow the extra £12k off that? If so, have you considered what happens if houses are worth less in a couple of years time? Putting more on the mortgage in two years time isn't exactly a plan to paying it off...

If you are brave enough to show us your house listing then we can give you an objective view of why people might not be viewing - whether it's the price, the photographs, your agent...

twirlypinky

If you show us your listing we can give you our opinions, but remember people don't tend to hold back. The main reason for a house not selling is price though really.