best way to fund a house purchase prior to selling existing one

latecomer

We've been out the house buying loop since 2007 and are now looking to move, we're in Scotland if that matters.

We are not quite ready to sell the house but may want to secure another in the meantime.

We dont have any concerns regarding actually selling our house, its got a lot of equity in it £200k+ and we have some funds to use as a deposit for the second house, although not a huge percentage of the potential purchase price (approx 5% available immediately). have a good combined income too.
If the house didn't sell quickly we could consider renting it out instead.

We're currently mortgaged with Britannia and are tied into a fixed rate (portable) for about another 18months. I'm presuming the thing to do would be to speak to Britannia?

We would probably want to avoid a bridging loan (if they still exist) given the high cost. What other options are there?

All advice gratefully recieved.

friendlymortgageadviser

The Brittania would probably look to see if you can 'port' your current mortgage to a new property, however you would need to speak with a buy-to-let lender if you want to raise some money against your current property and let it out!

Do you know the current value of your property, approximate mortgage balance and also the likely monthly rental income?

latecomer

I'm sure the mortgage is portable so thats not a concern - its about how to purchase the second house prior to the first one being sold.

current value would be £450-500k
mortgage balance is around £170k

rental income I've got no idea about - probably around £2000/month. Would probably rent it as a last resort to be honest - would prefer to just sell it once its ready.

Anyone know whether you can make an offer to buy a house without having the finance arranged (remember its in scotland if that makes a a difference)?
I realise thats probably better asked on the house buying board but no harm in asking

beecher2

What's the point in offering to buy a house without the finances in place? Go and see a mortgage advisor to see what your options are/

latecomer

If I had had the time to go see a mortgage advisor do you think I'd be asking questions on here?

The point in being able to offer to buy a house prior to having the finances arranged would be to ensure we dont lose it......just how things worked in the not too distant past

beecher2

latecomer wrote: »

If I had had the time to go see a mortgage advisor do you think I'd be asking questions on here?

The point in being able to offer to buy a house prior to having the finances arranged would be to ensure we dont lose it......just how things worked in the not too distant past

I wouldn't think of putting an offer in before I knew I had a firm mortgage offer. I genuinely don't see the point when you don't know how the financing will work.

I'd hope you would make the time to see a mortgage advisor and wouldn't base your decisions on comments on an anonymous board, particularly when you're buying in Scotland and most people on here have experience of the English market.

latecomer

We are arranging to speak to our bank to get their opinion on it and will also obviously be speaking to Britannia before making any move on the house. Just trying to get some thoughts before we do that.

CLAPTON

what price is the new house

what's your income

latecomer

purchase price approx £360,000
combined incomes around £90,000
We could probably quickly put up around £30,000 for a new deposit.