Looking at a Plan B (is this feasible?)

fcorry2008

At the moment I'm in the process of purchasing a new build home, however my buyers haven't had their mortgage approved yet, its been about 4 weeks since they put an offer on my property and despite my chasing with the Estate Agents, they still have no survey agreed or a formal offer from their mortgage provider Natwest. Not sure of the delays other the they needed paperwork which they now should have but thats another story

At this point I must be realistic knowing it may all fall through if my buyers mortgage is not approved.

I've been trying to think up a plan b in case it does fall through to secure the new home and the only thing I can think of is to get a buy to let mortgage.

I'm therefore after some advice on whether I could potentially do this:

Here are the facts:

My house is worth £100,000 (this is what I have a current offer on at).
My remaining mortgage is £57000.
Therefore I have £43000 equity.
I earn £34,000 per year.
I have £5000 savings in my back.

The house I'm hopefully purchasing is worth £140,000
If it came to it I could potentially borrow up to £30,000 from parents as additional deposit.

I would prefer to rent my existing house and move into the new one. I would probably still sell my existing house even if its being rented, unless its a worthwhile investment to have both.

This is a fall back plan, but would very much appreciate your advice quite a lot depends on getting the new home (but isn't it always the case )

fcorry2008

As well as the above the other thing I'm wondering is if the house builder of my new home would potentially hold my home for me for say 4 - 6 months or even indefinitely until my house sells if my buyer pulls out. Their not a huge builders but not small either, its a family run firm.

I'd actually be willing to put down my £5000 as an extra deposit to show my sincerity if they'd agree to this, but I don't know how feasible this is. I reckon I could find another buyer quite quickly, as my first offer came after just 2 days of me being on the market and my estate agent says I've got 2 other viewers on file. I priced the house low for a quick sale. Going to start taking more viewers now just in case.

Yorkie1

I think the best plan of action is to start taking extra viewers.

Otherwise it sounds potentially complicated. You can't get a BTL on your new property if you intend to live in it, and will probably need to convert it to residential before moving back in. If you get the BTL on your existing property instead with the intention of later selling it, then I'd have thought you'll be reducing your possible buyer pool by trying to sell it with tenant in situ - and will have a void period if you alternatively get the tenant out before selling.

I'd be surprised if the builder would be prepared to hold the property for you for the time you mention. Times are hard and they will have cash flow to look after.

fcorry2008

Just thought of this as another option. What if I just borrowed £30,000 from family and put £5000 down myself. That way I'd have the deposit to cover the mortgage offer. Then I could just switch my existing mortgage to interest only until the house sells (would only be about £150 a month? Not sure again if this is possible.