new mortgage for very very short period?

gowgowuk

Hi,
Sorry if this sounds obvious (I tried to search the forum to no avail).
Here is my (still hypothetical situation).
I'd like to move from my flat to something bigger.My flat is probably worth £200,000 with £40,000 left on the mortgage.
I'm also going to inherit £100,000 from my family.

I'd love to avoid the stress and pressure of trying to synchronise the flat sale and a new house buy and want to be able to look for a new home until I find "the one". Let's say I pay off my existing mortgage and am left with £60,000. When I find a house I love, can I start a new mortgage with the £60,000 as deposit (probably a interest only mortgage) just for the time it takes to sell the old flat and then once the sale goes through repay the second mortgage in full, even if it's a few months later?
As far as I can understand it's fine if I take a "no early repayment charge", "no exit fee" mortgage?
Thanks

Thrugelmir

You may struggle to find an interest only mortgage in the current lending climate. At the very least you would need to provide evidence of a suitable repayment vehicle which defeats the object of what I assume you are attempting to achieve.

getmore4less

Fut the flat up for sale and if you have not found somewhere or the timing is a bit off you can rent and put stuff in storage

The interest on the money will cover most of the costs

Wh05apk

Thrugelmir wrote: »

You may struggle to find an interest only mortgage in the current lending climate. At the very least you would need to provide evidence of a suitable repayment vehicle which defeats the object of what I assume you are attempting to achieve.

Provided you are under 75% ltv, several lenders will allow interest only with "pure" or with downsizing/sale of property as repayment vehicle.

You may do better keeping the mortgage on the flat, possibly getting consent to let if you intend to let, and then put a bigger deposit on the new property.

gowgowuk

Thanks for the comments. That gives me some food for thoughts...