Cannot find a suitable mortgage

vjm63

We are trying to find a mortgage in order to buy a house that needs a fair bit of work - and so far are not having much success! All the ones we've looked at want us to sell our current house pretty much at the same time as buyng the new - but we would want a gap of maybe a year to get the work done and for other reasons - too long for a bridging loan, really.

Can anyone out there suggest any reasonable rate short term mortgages that exist - we must be totally looking in the wrong places!

Much appreciated.

beecher2

Would your income support the two mortgages? Could you sell, rent and do the house up?

vjm63

We have not got a mortgage at the moment - and it seems lenders do not want to offer unless you are going to be living in the house from the beginning and for a good few years , so getting one on current, or potential will not be accepted. Family reasons we would not want to sell and rent, unfortunately.

We are new to this really - not moved for over 15 years - so I cannot remembbr if it was this tough last time!

getmore4less

How much and what LTV are you looking at for the new lace?
How are you going to fund the work?

Would the place be habital from day one?

Are they resonably close so you could "move in" and live use the old place some of the time.


How much is the current place worth?

Income?

Star1

What is the value of your current house and the one you are looking to buy? Would it be possible to get a mortgage on your current house to cover the new house purchase?

You don't need to get a 1 year mortgage, you just need to find one that doesn't have an early repayment charge, then you can pay it off as soon as you sell the exising place. It's probably best to talk to a mortgage advisor

vjm63

Current house about £160K, new place on at £330K.
We could live there (someone is now) but frankly I would not want to since the bathroom and kitchen need total gutting and sorting - plus there is damp visible in walls. I know, sounds terrible - but it is over 200 years old! We think the building work would be well nigh impossible when actually in the place (so I admire those who do this).

LTV - we could get a deposit of 25-30% reasonably easily from savings. Work would be funded from savings and mortgage to some extent, small endowment due up next year, and the current place when we do move and sell.

We did ask about a mortgage on current place - but if we are only going to be there for a year or so longer...would they lend?

Family reasons mean we would not want to move there for another year/18 months at the earliest.

Must admit - I think a mortgage borker might be the way to look at this...

Jackinbox99

vjm63 wrote: »

Current house about £160K, new place on at £330K.
We could live there (someone is now) but frankly I would not want to since the bathroom and kitchen need total gutting and sorting - plus there is damp visible in walls. I know, sounds terrible - but it is over 200 years old! We think the building work would be well nigh impossible when actually in the place (so I admire those who do this).

LTV - we could get a deposit of 25-30% reasonably easily from savings. Work would be funded from savings and mortgage to some extent, small endowment due up next year, and the current place when we do move and sell.

We did ask about a mortgage on current place - but if we are only going to be there for a year or so longer...would they lend?

Family reasons mean we would not want to move there for another year/18 months at the earliest.

Must admit - I think a mortgage borker might be the way to look at this...

I am in a similar situation and unless you fit into the black & white "new house FTB" or "sell old house & move into new one" groups then a lot of mortgage companies wont touch you, regardless of how big a deposit you have, or how much your monthly income is.

One reason one lender gave me, after initially approving my mortgage twice prior to me making an offer on a house, is that they see it as short term lending and therefore most banks dont do that. You need a bridging loan.

Some banks do not have that view though and look at it how I thought they would look at it. i.e. if you can clearly afford it, then whats the problem?

Normally I can always find a better deal than a mortgage broker, but in this instance, its worth speaking to a broker as they will have a good relationship with the banks and be able to advise you which banks will not cause you problems. Ive now got a mortgage with one, albiet at a higher rate than I could get elsewhere and I needed a larger deposit, but at least ive got a mortgage now.

vjm63

Thanks for that comment Jackinbox99 - I had in fact just read through your other comments on another post today - and thought: sounds so similar!

Looks like a broker is definitely the way - many thanks to those who commented and helped!