Making an Offer (not sold own property yet)

fcorry2008

I've just been speaking with my mother who's had an idea.

My house is valued at £100,000 (priced to sell) and I owe £58,000 on the Mortgage, so I have between £30 - £40k equity depending on what it actually sells for.

The house I'm wanting to buy is a repossession at £120,000, however I could make an offer at £90,000 and up my offer to £100,000.

Taking the above into consideration I could seek an immediate mortgage of £160,000 to cover the remaining mortgage on my own home, allowing me to put a cash offer on the new home.

I've never missed a mortgage payment and the mortgage calculator on this site tells me I could borrow £160k. I also have solid credit rating.

I would be taking on a big mortgage but when my house sells I could pay the lump off and get it back down to around what I have left to pay at the minute. It might take 6 months or so to do this but I could manage ok if I'm disciplined in my money management.

Do you think what I'm suggesting is feasible?

john_white

fcorry2008 wrote: »

I've just been speaking with my mother who's had an idea.

My house is valued at £100,000 (priced to sell) and I owe £58,000 on the Mortgage, so I have between £30 - £40k equity depending on what it actually sells for.

The house I'm wanting to buy is a repossession at £120,000, however I could make an offer at £90,000 and up my offer to £100,000.

Taking the above into consideration I could seek an immediate mortgage of £160,000 to cover the remaining mortgage on my own home, allowing me to put a cash offer on the new home.

I've never missed a mortgage payment and the mortgage calculator on this site tells me I could borrow £160k. I also have solid credit rating.

I would be taking on a big mortgage but when my house sells I could pay the lump off and get it back down to around what I have left to pay at the minute. It might take 6 months or so to do this but I could manage ok if I'm disciplined in my money management.

Do you think what I'm suggesting is feasible?

160k mortgage on a 100k property, no chance.

No one accepts an offer from someone that can't proceed, there is no point. Think about it, you are offering money you don't have the agent that told you this is simply telling you what you want to hear so that you'll market your property with them.

Look at it this way, mr bloggs comes up to you and offers you 90k for your house but says he has no idea when he'll be able to get the money if at all, would you really take your house off the market in the hope they actually do raise the funds?

mcc100

PasturesNew wrote: »

I'd suggest anybody PMing you with such a suggestion is touting for business/spamming you. If it's such a great idea they'd have posted it here.

Totally agree .....

Why not name the poster who has PM'd you so that other users are aware of him/her.....

fcorry2008

mcc100 wrote: »

Totally agree .....

Why not name the poster who has PM'd you so that other users are aware of him/her.....

Its Barney982 and they identified themselves as katebroadhead, they had 0 posts so it was obviously a scam.

kingstreet

First post yesterday was all about her investors. Reported as spam, so removed by mods, I'd expect.

TrickyDicky101

fcorry2008 wrote: »

I've just been speaking with my mother who's had an idea.

My house is valued at £100,000 (priced to sell) and I owe £58,000 on the Mortgage, so I have between £30 - £40k equity depending on what it actually sells for.

The house I'm wanting to buy is a repossession at £120,000, however I could make an offer at £90,000 and up my offer to £100,000.

Taking the above into consideration I could seek an immediate mortgage of £160,000 to cover the remaining mortgage on my own home, allowing me to put a cash offer on the new home.

I've never missed a mortgage payment and the mortgage calculator on this site tells me I could borrow £160k. I also have solid credit rating.

I would be taking on a big mortgage but when my house sells I could pay the lump off and get it back down to around what I have left to pay at the minute. It might take 6 months or so to do this but I could manage ok if I'm disciplined in my money management.

Do you think what I'm suggesting is feasible?

I believe you would need to take a second mortgage on the new property (not extend the present one as the property isn't sufficiently valuable). To take the second mortgage you will need to satisfy whatever lending criteria and will need free cash as a deposit (you don't mention whether you have any). Looks like a non-starter to me.

Phil_rich

When I was selling my house I refused to have viewings from people who could not proceed. Why waste peoples time? If you like it and its perfect you when you view on tuesday can you buy it there and then?? No! so what was the point in viewing??

fcorry2008

TrickyDicky101 wrote: »

I believe you would need to take a second mortgage on the new property (not extend the present one as the property isn't sufficiently valuable). To take the second mortgage you will need to satisfy whatever lending criteria and will need free cash as a deposit (you don't mention whether you have any). Looks like a non-starter to me.

This might be an option, I have £5,000 saved but I'd set this aside to cover the buying and selling fees. If I took a second mortgage I could perhaps set my mortgage to interest only to make having two mortgages easier in the interim until my house sells.

Another idea I had was that I could take myself off the current mortgage and leave it in my wifes name and ensure its paid from her bank account until the house sells (so basically I disassociate myself with the current mortgage). I could then take a new mortgage out in my own name for up to the value of the house I wish to buy. Does that sound like a viable option? I guess once I get an agreement in principle I could put an offer on the property I want to buy.

kingstreet

fcorry2008 wrote: »

I've just been speaking with my mother who's had an idea.

My house is valued at £100,000 (priced to sell) and I owe £58,000 on the Mortgage, so I have between £30 - £40k equity depending on what it actually sells for.

The house I'm wanting to buy is a repossession at £120,000, however I could make an offer at £90,000 and up my offer to £100,000.

Taking the above into consideration I could seek an immediate mortgage of £160,000 to cover the remaining mortgage on my own home, allowing me to put a cash offer on the new home.

I've never missed a mortgage payment and the mortgage calculator on this site tells me I could borrow £160k. I also have solid credit rating.

I would be taking on a big mortgage but when my house sells I could pay the lump off and get it back down to around what I have left to pay at the minute. It might take 6 months or so to do this but I could manage ok if I'm disciplined in my money management.

Do you think what I'm suggesting is feasible?

You might be credit worthy upto £160k, but the lender will have a maximum loan to value of perhaps 90%, which means you'll only get £160k on a property value of £178,000 and with you putting down £18k deposit.

Without selling the property, all you can do is remortgage the current property onto a buy to let, raising as much capital as you can for a deposit for the new one. If it's worth £100k, you should be able to get £80k, which after paying off your existing mortgage leaves £22k.

Allowing for fees of £2k, you'd then have a deposit of £20k for the repo, leaving a mortgage requirement of £90k on a £110k agreed price.

I'd say this solution is fraught with problems. Do you want to be a landlord? Will the rental value be enough to cover the mortgage payments, plus a loading from the lender? Loads of variables...!

The best solution is to find a buyer for yours and put the repo on ice until you're in a position to proceed...

kingstreet

fcorry2008 wrote: »

Another idea I had was that I could take myself off the current mortgage and leave it in my wifes name

Would your current lender give permission for her to take the mortgage on on her own? Is her income high enough? Where's the deposit coming from for the new one?