Can we do it?... ideas/advice please

RSDICKENS

Hello first time poster so please be gentle...

Scenario.....

We (me and the wife) have been tracking a house that has been on the market for a few months. It has dropped from £165k to OIRO £125k. :j in the last 6 months.

Its pretty much our dream house but needs some TLC.. (We have viewed the property)

Our current house is valued around £130 - £135k (based on whats for sale down our road). But it isnt on the market at the moment.

We have a current mortgage remaing at £116k.

Would we have to sell our house.. then get a new mortgage based on a 10% deposit of £12,500 to purchase the other house. Or are there any other options?.

Any help or advise would be gratefully appriciated

RSDickens

tyllwyd

I don't quite understand your question. Selling your house and using the equity plus a mortgage to buy the other one is the usual way to do it - what other options are you thinking of? You don't seem to have enough equity in your house (and I assume no major savings) to make anything else practicable.

RSDICKENS

Thanks for the response tyllwyd..

"Selling your house and using the equity plus a mortgage to buy the other one is the usual way to do it - what other options are you thinking of?"

Any other options...?

Sorry the original post wasn't really to the point..

Are there any other options available? a bloke at my wifes work said you could transfer your current mortgage onto a new property?..

I don't really understand how that would work.

If we were to sell our property for say £125k we would only have £9000 + small savings £3000 so we would still be short of the 10% plus fees etc..

Sorry again if this isnt to the point im just after some advice and trying to see if there are any other options that would mean that we have at least a chance of purchasing this house.

firstaspect

Your mortgage lender might let you port the mortgage onto the new property, you'd have to ring up and ask them. Otherwise yes you'll be looking at raising 10%+ at least deposit (including equity from your house) to be able to get a new mortgage.

RSDICKENS

"port the mortgage"... i'll have a look on google for this..

Sorry i've never heard of this expression before?..

We are on the base rate at the moment as our fixed rate ran out a few months ago..

sonastin

The only way you can transfer the mortgage from the house you currently "own" to a new property is to sell your house. Until you do that, nothing is viable.

Are the houses down your road selling at that asking price? If they've been on the market for a while, you might find that they are asking too much. If you want to sell quickly, you would have to undercut them anyway so you would be lucky to get anything towards a deposit on the dream house.

The only way I can see the sums working out on this one is if you find a buyer for your house quickly and the vendor of your dream house is willing to accept a really low offer. Unfortunately in the circumstances you've described, I don't think either is really very likely to happen.

Sorry.