Help! Mortgage and our buyer has pulled out, solutions suggestions?

forbo84

[FONT=&quot]The situation is that our buyer has been refused a mortgage and we are desperate not to lose the house we are buying so wanted to get advice from people on here if possible.[/FONT]
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[FONT=&quot]We were pulling £47k equity out of the house for the purchase, if we could replace that 47k with cash (loan from family to repay when we sell our house) would we still proceed with the added complications of:[/FONT]
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· [FONT=&quot]We are porting our existing mortgage with Nationwide to a new nationwide mortgage [/FONT]
· [FONT=&quot]We are looking to aggressively sell our house and it’s a cheap price so expect it should sell before we exchange on the house we want.[/FONT]
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[FONT=&quot]The point would be so we can still proceed to buy and don’t lose the house with it going back on the market, I am just not sure about complications as would it been seen as having 2 mortgages etc even if it’s a tiny period of time.[/FONT]
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[FONT=&quot]Just looking for a resolution to the situation with the generous offer of a no stings loan to reply the house equity in the deal.[/FONT]
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[FONT=&quot]Thought welcome.[/FONT]
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[FONT=&quot]Many thanks
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kingstreet

You'll have to ask Nationwide if they will do this without you selling.

Otherwise, you'll have to remortgage the current property and hope Nationwide still allow the port, although I have a feeling they will only allow porting on a simultaneous sale/purchase.

Crashandburn

The difficulty you will have is with regards to your current lender and indeed their policy on second properties.

I would say it's best to get in touch with a broker and they can talk you through how this can work. The fact you have another deposit going forward on the new property is a massive bonus and whilst it might be a bit complicated to put in place a solution, then as long as all the figures fit within lenders loan to value limits, then I can't see why you cannot proceed

good luck

Crashandburn

kingstreet wrote: »

You'll have to ask Nationwide if they will do this without you selling.

Otherwise, you'll have to remortgage the current property and hope Nationwide still allow the port, although I have a feeling they will only allow porting on a simultaneous sale/purchase.

it will be the nationwide's policy on second properties that could be the sticking point as in effect they could be living in the new property and depending on affordability, it will be whether they include or ignore the existing mortgage loan.

Crashandburn

Alex0012 wrote: »

At this point, however, you are not tied to the mortgage and can pull out and go to another lender.

True, but the reason they might be porting is to avoid ERCs or indeed on the lower variable rate, which might outweigh using other lenders.

kingstreet

Crashandburn wrote: »

it will be the nationwide's policy on second properties that could be the sticking point as in effect they could be living in the new property and depending on affordability, it will be whether they include or ignore the existing mortgage loan.

Yeah. Max 85% and best case scenario is they'll deduct the cost of the current mortgage from income for affordability if it isn't let.

Crashandburn

kingstreet wrote: »

Yeah. Max 85% and best case scenario is they'll deduct the cost of the current mortgage from income for affordability if it isn't let.

Even if it is let, they need to at least see one bank statement showing the tenant already in the property. Bit of an archaic policy in the current market in my opinion

kingstreet

Aye. Agreed.