getting finances organised

clairey179

hoping for some helpful advice! have sale agreed on my property and have now agreed purchase of noew property. I need to borrow an additional 40k to buy the house. Mortgage provider done the AIP, all fine, i'm now just starting to get a wee bit jittery in case the finances aren't all in place on time. i have 4 weeks until i leave old flat and move into new house.
If the finances aren't in place in time, and only the ported part of the mortgage is there, i won't have enough to buy the house.
Is there any short term solution for this? (like i mean, literally borrow 40k for a week in case the bank aren't ready on time)
Any suggestions/advice?
Thanks in advance

hazyjo

So you're selling a flat and buying a house? And you have a buyer who hopes to be in in 4 weeks? Have you exchanged or something?

If not, surely you'll just exchange all on the same day and all complete on another day (set at exchange). Am I missing something? Don't get why you'd have to sell in 4 weeks. Is your buyer ready to exchange now? The whole process from start to finish takes on average 12 weeks. Why do they think they can be in in four? Not saying it can't happen - have done it in that time myself - but if they've also only been in the chain for four weeks, surely you'll all just stretch it out a bit and exchange on the same day.

And if you sell, you'll be 'inbetween homes' for a while, but could you stay with friends? Family? Your new, extended mortgage will be in place for when you buy.

I think there's something you're confused about, but I'm not sure how you can best explain it. I'm really not getting it at the mo.

Jx

clairey179

Thanks for your reply, maybe i could've made it clearer! I'm in Scotland, so i think it's different from the English system.
I've accepted an offer on my flat, and had an offer accepted on a house. My buyer will move in at 12pm on moving day. I get the keys to my new house at 12pm the same day. (The solicitor is doing the missives etc at the moment, and is quite happy with it all - he just said to make sure we've got the extra borrowing through)
I need to borrow additional money from the bank to fund buying the new house. The deposit comes from the sale of my flat.
The majority of the mortgage is being ported across from my flat to the house.
I'm just getting worried if the mortgage application hasn't been fully processed and the money released in time.
Sorry, that might not actually make it any clearer at all!

scottishblondie

If you need a short term loan for the new property the way to go is a bridging loan. A lot of people in Scotland use them as there is often an overlap between buying and selling. They aren't cheap tho.

clairey179

Thanks. How do you get a bridging loan? Is it just through the bank?
It hopefully won't come to that, but I just want a back up plan in case the mortgage co aren't organised in time!
I suppose aswell if i really had to i could gather a fair chunk from family/friends, would just rather avoid that if at all possible!

kingstreet

Claire,

You seem to have the same misunderstanding of the porting system as a lot of people.

You are not raising an extra £40k and transferring your old mortgage.

You are applying for a whole new mortgage at the total amount you need to borrow to complete your mortgage. On completion day, either all the money will be there, or none of the money will be there. Your solicitor will ensure funds are in place, of that I'm sure.

Back to porting. You are porting the rate from your old mortgage to a new mortgage on the new property. If you are borrowing extra money, this will be offered on one of the lender's current products.

NeverAgain_2

I don't claim to understand porting or the Scottish system, but a friend of mine in England took out a bridging loan.

Cutting a long story short, the loan was outstanding for longer than anticipated, and the extra costs nearly crippled him.

So I would avoid any form of bridging loan.