Is it possible to have 2 mortgages for a short time?

pink_petal

Stu, no I appreciate the help...don't worry about sounding negative. This is the stuff I need to hear before we decide to go ahead with the offer.

We hadn't really planned to move and hadn't looked at property. This was an opportunity that came up through someone who knows someone...it's in an area we'd decided would be our next move and it's such a good price as it needs a bit of work as it was an older couple living there so we are only really selling for this house and opportunity, if that makes sense?

Also, it's not really that we can't afford the monthly payments on both, we just have no savings as we put them all into doing up the flat we're in now. We hadn't planned on moving just yet so had planned to save again but then this came up and here we are!

Would it be worth speaking to my bank and seeing what they suggest?

kingstreet

A better idea would be to speak to a broker. You'd get a much better view of the options open to you, including your current lender.

If you speak to your own bank, you'll find you get their policy and products pushed at you as the only option and told everyone else does it exactly the same way, when the reality is very different.

pink_petal

Thanks. We didn't use a broker last time so don't have one but I'll get the OH on the case and see if we can speak to someone today as we have to let our lawyer know if we want to proceed with our offer by tomorrow morning.

Thanks everyone!

StuC75

Your bank is probably best route -as they know you best. But make sure have a master plan of how you plan to approach it..

If it requires modernising - then consider that you may want two properties for a while (whilst it is being done up). if it needs that much work doing is it actually mortgageable? is it modernising or is it rennovation?

That gifted assistance is available (how this may need putting across to satisfy the lender) to cover what LTV ratios they may need to keep things happy.. whilst satisfying Additional Lending criteria (as will have security in the form of the second house.. Do watch for early repayment penalties though as \ when first property sold on that 'pot' is redeemed...

pink_petal

It's definitely mortgageable. It just needs rewired, new flooring, doors, bathroom, it has woodchip on every wall. Those kinds of things!

Going to speak to the bank this afternoon and see where we stand with them. Oh to go back to the days of being a first time buyer and not having to worry about chains!

JimmyTheWig

pink_petal wrote: »

My mum has just retired and has a decent lump sum

Presumably this lump sum isn't enough for your mum to lend you the money to buy the new place outright, is it?

pink_petal

JimmyTheWig wrote: »

Presumably this lump sum isn't enough for your mum to lend you the money to buy the new place outright, is it?

Unfortunately not! She could certainly lend us the deposit though.

R_P_W

Doesn't sound like this is going to happen. Maybe if you had cash savings for deposit on the new place it would be.

We did a similar thing last year, wanted to sell house in midlands to buy a flat in London due to job moves. House in midlands has basically take a year to sell, but we bought a place in London with 3 months. Would have been impossible if I had to wait for my house to sell.

So unless your parents gift you a deposit?

JimmyTheWig

pink_petal wrote: »

Unfortunately not! She could certainly lend us the deposit though.

Shame.
From what I understand, lenders won't be interested in a lent deposit.
Some (most?) will allow a gifted deposit.
Which means that your mum will have to legally give you the money for the deposit, along with a signed note to say that she is giving you it and doesn't expect to get it back.
[Obviously you can then give her the same amount when the first property sells, but legally you won't have to.]
Do you think your mum would trust you to do this? I'll be honest - if she posted on these boards saying her daughter had suggested this then she would be told not to do it!
Also, do you have ERCs to pay on your existing mortgage (e.g. are you in a fixed rate / discount period)?

Alternatively, your parents could mortgage their own home (depending on how old your dad is) and use that to buy your new place. That wouldn't be touching a mortgage company on your purchase so it could be documented that it was a loan they had given you.
Obviously this will incurr mortgage arrangement fees, and probably ERCs when you pay them back. Which obviously they are not going to want to pay so would be your responsibility. Which would make this place that seems a bargain quite expensive.

Radical thought: Would your parents be interested in buying your place from you (via a mortgage) and letting it out as an investment?


I think the over-riding answer is "yes you can have two mortgages", but only if you have a lot of money to throw at it.
In your case I think the answer is to secure yourselves a buyer and then look at putting in offers elsewhere. Hopefully yours will sell quickly and this place will still be available. If not, I'm sure there are others out there that would be just as suitable for you.

Yorkie1

Unless the flats where you currently live are flying off the shelves at asking price, I think what you are proposing is highly risky.

By proceeding with the new purchase without selling your current property, you are committing yourself (or your parents) to an open-ended payment of two mortgages. If you have no savings at present, and very little equity anticipated, I think this really is head over heart.