New mortgage or remortgage house move ?

Jules77_2

Hi,
Ok, I will try not to ramble too much.

We currently own a house with a 100% interest only mortgage, I know it's not great,

A house is about to come on the market near to my mil which is run down and needs lots of work but my dh loves a project and the house would be ideal for us in a lovely village etc...

The house next door, they are semis, is for sale for 225000
This one is asking offers around 120000 so there is huge potential there.

We would love this house and it would be our last move.
My mil has offered to cash buy it for us and then once we have done it up a bit we would then get a mortgage and pay her back, very generous offer.

We would then put our house on the market.

Is it better to do that or to try and mortgage it straightaway before its been improved and therefore not worth so much ?

How easy would it be to obtain a mortgage once we have stepped off for a bit ?

Hope I make sense !

Thanks in advance.

Thrugelmir

How would you fund the mortgage and the renovation on the new property?

At the moment you have an interest only mortgage. So would require either a repayment mortgage or put a repayment plan in place for the new property.

Jules77_2

Hi,

We would sell our house and pay off the mortgage on it and then take out a new mortgage on a repayment basis and pay back my mil.

The renovations would be done by us whilst ours is on the market.

Probably just answered my question there !

I wanted to know if it would be hard to take out a new mortgage or if we could port our existing one over on sale of house ? Not sure that makes sense !

Thanks.

Jules77_2

I also have a 22,000 loan will this decrease my chances ?

dimbo61

How much is your current house worth ? How much do you owe on it ?
You have a £22K debt and little equity in your current home !
Have you got the money to pay the Estate agent, solicitor, exit fees, etc when you sell your current home
You then need a mortgage to buy the other house and do it up!
even with a good income but you don,t have a deposit.
The days of buying a place cheap doing it up and selling it for £100K more are long gone as surveyors can check prices of recently sold properties in the area and check what your MIL paid for it

Jules77_2

Hi,

Sorry I didn't make it clear, it's not to sell on, it's for us to have as our last move so a forever home, we should sell ours to clear the existing mortgage and pay all the fees with.

My mother in law would just want her money back that she is lending us to buy the house now as it is an opportunity we don't want to miss, we could never afford a house in this area otherwise.

Just worry we wouldn't get another mortgage and then be stuck in an awkward situation with all of mil money.