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Can you point me in right direction?

Hi.
I've been watching an empty house I'd love for months and it's finally on the market. Repossessd being sold via estate agent for £172,000. I'm in Scotland if that's important?

I'm mortgage free :). House worth £210,000. I estimate costs for gutting new house about £50,0000. I'll put this house on market but know it may take months to shift and I need to buy fast if builder Oks new house. I have £80,000 savings but that's it.

Good income so don't think lending will be a problem. Should I mortgage this house or get mortgage for new house? Which type of product best and where from?. I'd hope to pay of all lending as soon as possible when this house sells.

Thanks in advance for any help
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Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Why would you struggle to sell your property?
  • dazed04
    dazed04 Posts: 11 Forumite
    House movement still very slow here. House next door on the market for 6 months now, price seems fare. Also my house needs stuff done-new kitchen, new boiler which I think will put some off and makes me keen to move!!
  • Sooetie
    Sooetie Posts: 141 Forumite
    Part of the Furniture 100 Posts
    Don't they still do bridging loans?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Sooetie wrote: »
    Don't they still do bridging loans?

    Not a cheap option.
  • dazed04
    dazed04 Posts: 11 Forumite
    I had heard about bridging loans but friends also advised that would be very expensive - not that my friends are much more savvy than me on the subject!

    I've met with HBOS who suggest remortgage this house(14yr term-I'm 51) , fixed rate for 2 years then repay whole amount. 3.99%
  • kingstreet
    kingstreet Posts: 39,298 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Right idea.

    The rate's not great though.

    Shop around more. You should be able to get a lot closer to 3%, with minimal/low fees too.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • dimbo61
    dimbo61 Posts: 13,727 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Look at offset mortgages
  • dazed04
    dazed04 Posts: 11 Forumite
    Thanks. I'll do some reading of stickies re offset mortgage-afraid is all a bit gobbledegook to me for now but I'm a quick learner!
  • post 8 is good advice
  • Cornucopia
    Cornucopia Posts: 16,500 Forumite
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    Mortgaging your house is going to be much easier and more flexible.

    An offset will allow you to keep the money ready without paying interest until you buy the other house.

    The other house may not be mortgagable, anyway, if it needs gutting.
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