Can I apply for two mortgages???

indian_jalepeno

Hi all, the reason why I ask this is because I have just reserved a new build property (which will not be completed till Dec/Jan 13) and am not guaranteed that I will sell my current house. If I don't I willl look at a BTL mortgage.

As per the reservation criteria I have to complete within 28 days and then pay the 10% deposit. I currently only have a mortgage in principle from the HSBC which will not suffice. I've not heard good things about them also WRT their additional sols fees...which I've read they are getting rid of??? The HSBC is the most competitive rate atm, but have been informed they are slow to process applications. My next option is Coventry BS, who do allow for LTB options if I dont sell.

So, based on the fact that I may not sell my house within the next six months or indeed within the next three weeks, can I apply for two mortgages based upon two different loan requirements? As the money from the sale would reduce the new mortgage LTV?

Or, should I just apply for a mortgage in the worst case situation based upon not selling my house and having a greater LTV...if I then sell surely they would honour the new reduced loan required???

Probably massively long winded and over analysed!!??

Thanks in advance

I J

Thrugelmir

If the property isn't going to be finished until next year. Then no lender will give you a mortgage offer that will remain valid until then.

Your solicitor would advise you against exchanging without a mortgage offer in place. If you fail to complete then you leave yourself wide open to claims for damages.

indian_jalepeno

Thanks for your reply. Appreciate that their offer will not cover until this Dec / Jan, but what other option do I have to complete exchange? I'm thinking I'd need to get one now and start paying for it now!!???

Obviously I dont want to lose my deposit, and also realise the lender can pull offers at any time...it seems like a big gamble to me now.

How do others buy 'off plan' for a house not being built within 6 months who need a mortgage? Also, can there be a clause in the contract to allow for further delays in build time??

Ta

bigadaj

Currently I guess most people wouldn't buy off plan, there's no incentive unless you get a massive real discount which the builders won't want to give.

You won't be able to get a mortgage now as there is no property to secure the lending against, you also may struggle to get a buy to let, or consent to let, as there is no track record of what rent you can achieve.

There can be a clause in the contract wrt delays but would not think the builder would volunteer it, need to raise it with them and negotiate what may be acceptable.