slow sales

j3842

This may be a stupid question but..

I'm selling a house I have no morgage on but I want to buy quickly..

Ideally my house would sell, I'd use that money, some cash I have and a (roughly 30% LTV) morgage to buy the new house.

As its going slowly can I use the cash I have as a 20% deposit, take an 80% morgage and then pay off a huge chunk of the morgage a few months down the line when my house sells??

Anyone know firstly if this is possible? and any easy ways to do this/lenders who will let me do this without a hefty penalty?

Thanks

Thrugelmir

You would need a bridging loan. This would cost around 1% a month plus an arrangement fee.

kingstreet

j3842 wrote: »

This may be a stupid question but..

I'm selling a house I have no morgage on but I want to buy quickly..

Ideally my house would sell, I'd use that money, some cash I have and a (roughly 30% LTV) morgage to buy the new house.

As its going slowly can I use the cash I have as a 20% deposit, take an 80% morgage and then pay off a huge chunk of the morgage a few months down the line when my house sells??

Anyone know firstly if this is possible? and any easy ways to do this/lenders who will let me do this without a hefty penalty?

Thanks

There are many products in the market with no early repayment penalties. Tracker products in particular. These can be used for your purpose and paid down with the sale proceeds when they arrive.

You will need sufficient income and affordability to be able to take on the larger commitment and the mortgage will, of course, be subject to your credit worthiness.

warwicktiger

Have a look at offset products