Dilemma

debyardley

After 24 years in the same house, and having paid off my mortgage some time ago, I am moving to a new town.

I'll need to buy a new house, and mine is on the market. I don't want to move house twice, so I am thinking of buying the new house before selling the old if necessary. I have enough cash for a 20-25% deposit on the new house.

Should I

a) get an offset mortgage on the new home and hold the cash against it when my first home sells and the capital is released?

or

b) remortgage my existing home and use the cash to fund some of the purchase of my new home - I might need a small top-up mortgage, then pay off the first mortgage when the property is sold? Would any lender let me do this?

In the limited research I've done so far, I have been quoted poor rates or refused as this is a 'second home' situation. I also fit neither the 'first time buyer' or remortgaging' categories so many lenders have!:(

Are there any alternatives?

Senior_Paper_Monitor

On first evaluation I'd be tempted towards a no (or low) ERC offset on the first property - all or majority of funds sit in offset until purchase completes (therefore cost little or nothing) and end mortgage when current property sells.