Buying and Selling

clairey179

Possibly an obvious question, but I'm really not sure how this would work. My flat is up for sale, (no offers yet), and i've found the house I want. I know the best thing to do is sell first etc, but this may not be practical as i need to move quickly. I have a 10% deposit saved for somewhere new, and about 25% equity in my current property. I have a lodger in my spare room which almost covers the current mortgage.
Any thoughts/advice?
Thanks

hcb42

if you have the 10% and all the fees associated with purchase, then you could just go ahead with that, and let the bank know that the original property is being let out.

Depends how soon you want to sell it/think you can sell it really. otherwise it is an expensive burden around your neck, unless you are happy being a landlord too.

Of course only 10% deposit means you will be on a terrible rate, compared to what is available for the bigger deposits

dimbo61

You first of all have to ask your existing lender for consent to let your current property and see if your lodger will rent the property on there own!
You then need to find a lender who will give you another mortgage with a LTV of 90%
This is a very risky idea as what happens if you cant rent out your existing property, void periods etc
Being a landlord has responsibilities and expenses
It would be better to sell your existing place first and put a larger deposit down on the second home