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Exchange before house is sold?
80schild
Posts: 240 Forumite
We have a cash buyer for our house who can complete fairly quick and have the back up plan of remortgaging BTL if this falls through.
Our new lender for our purchase is 'The Nottingham'. They are only lending on condition our mortgage to NRAM will be paid off-which it will when we sell or if we remortgage as BTL presumably this doesn't count as a residential mortgage. In any case even if both these plans fell through we would not have trouble finding another buyer as the house is being sold at about 70% of market value.
What I was wondering is, as time is ticking on and we are worried our pruchase house will get 'snapped up' as its quite a bargain, is, is it possible to complete, or at least exchange with complete date set for on or before say 1st April on our purchase.
My parents have said that they would help us out with the payments on both mortgages if need be-would the lender possibly accept this on some kind of guarantor scheme? They have a high monthly income and low monthly outgoings as their mortgage is paid so proving they could do this would not be an issue!
I will speak about this with the mortgage broker obviously but just wanted a few opinions on here first, incase it is a completely 'bonkers' idea!!!
Our new lender for our purchase is 'The Nottingham'. They are only lending on condition our mortgage to NRAM will be paid off-which it will when we sell or if we remortgage as BTL presumably this doesn't count as a residential mortgage. In any case even if both these plans fell through we would not have trouble finding another buyer as the house is being sold at about 70% of market value.
What I was wondering is, as time is ticking on and we are worried our pruchase house will get 'snapped up' as its quite a bargain, is, is it possible to complete, or at least exchange with complete date set for on or before say 1st April on our purchase.
My parents have said that they would help us out with the payments on both mortgages if need be-would the lender possibly accept this on some kind of guarantor scheme? They have a high monthly income and low monthly outgoings as their mortgage is paid so proving they could do this would not be an issue!
I will speak about this with the mortgage broker obviously but just wanted a few opinions on here first, incase it is a completely 'bonkers' idea!!!
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Comments
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It's what's known as a "bridging loan"; if your lender is ok with this I don't see why not. Just as long as you've weighed up the risks and are confident about the sale of your first house.0
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We did it once, and regretted it. A hitherto unsuspected problem arose in connection with the house we were selling, with the result that not only did the buyers pull out, but it was months and months of double mortgage payments before we got the problem fixed and the house was finally sold.
Mind you, we didn't have any help with the double payments. It was very stressful for us but might be less so in your position, with parental help.0 -
The payments on the existing mortgage are quite low as we have payed a large chunk of the mortage off-even the payments on the new mortgage aren't too bad! I am quite confident this buyer will complete or if he didn't we would be able to take out a BTL remortgage or failing that another buyer should not be a problem due t being priced to attract investors!0
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