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Avoiding a chain
AndyW156
Posts: 3 Newbie
Some great advice coming out in the forums so hoping to tap into some ideas...
I saw a property the wife in particular wanted. There was another interested buyer and we knew it was genuine that the vendor would only accept an offer that was proceedable. The other buyer had got the house to 'sold' but their sale fell through.
To secure the house, we put forward a proposal that we would rent out our old house, and therefore purchase without any chain. The offer has been accepted.
We are now in a position of wondering about renting our old house (in which case we will remortgage to buy to let), or selling it with the advantage that we would have less rush and show the house empty.
My understanding is that we can obtain consent to let on the old property and then take out a new residential mortgage on the new house. Can anyone confirm that we are not doing anything 'underhand' by doing this? Also, would you recommend that we use the same mortgage provider (Natwest) for both properties? The last thing I want is for another provider to, at a late stage, have an issue with the second mortgage. Perhaps I give them too much credit for talking to each other!
Also, I intend to use the proceeds from sale (or the proceeds from remortgage) to reduce the main mortgage on my new (main) property. I am looking at offset mortgages which seem to have low fees and no ERCs. After I have reduced the mortgage it seems I can remortgage with a more healthly L2V without ERC. Flexible mortgages you can overpay and escape without charges?! Seem too good to be true... Natwest and Santander currently both seem to have such products.
All comments and thoughts welcome - even some affirmation my plans seem probable from some old hands would be appreciated!
Andy
I saw a property the wife in particular wanted. There was another interested buyer and we knew it was genuine that the vendor would only accept an offer that was proceedable. The other buyer had got the house to 'sold' but their sale fell through.
To secure the house, we put forward a proposal that we would rent out our old house, and therefore purchase without any chain. The offer has been accepted.
We are now in a position of wondering about renting our old house (in which case we will remortgage to buy to let), or selling it with the advantage that we would have less rush and show the house empty.
My understanding is that we can obtain consent to let on the old property and then take out a new residential mortgage on the new house. Can anyone confirm that we are not doing anything 'underhand' by doing this? Also, would you recommend that we use the same mortgage provider (Natwest) for both properties? The last thing I want is for another provider to, at a late stage, have an issue with the second mortgage. Perhaps I give them too much credit for talking to each other!
Also, I intend to use the proceeds from sale (or the proceeds from remortgage) to reduce the main mortgage on my new (main) property. I am looking at offset mortgages which seem to have low fees and no ERCs. After I have reduced the mortgage it seems I can remortgage with a more healthly L2V without ERC. Flexible mortgages you can overpay and escape without charges?! Seem too good to be true... Natwest and Santander currently both seem to have such products.
All comments and thoughts welcome - even some affirmation my plans seem probable from some old hands would be appreciated!
Andy
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