Putting in a offer before selling our property

titusbungle

We have an apartment that we've just put up for sale. We owe £73k and expect to get £60k due to negative equity - we are paying off the difference.

As we are not taking any profit from this sale to put towards a new property, are we allowed to put in an offer / apply for a mortgage for a house that we like? It is £130k and we have a decision in principle with a 10% deposit.

We can pay both mortgages for at least 6 months if the apartment doesn't sell ASAP (priced at £70k to start - we paid £85k 6 years ago). After that our parents can help. We are unable to rent out our current property - I know we are effectively throwing away up to £13k to sell but that is irrelevant.

We earn a combined income of £40k if that matters?

Mr_Moo_2

If your purchase isn't dependant on selling the flat then there's nothing to stop you offering on a new place.

Just do the maths on supporting a mortgage of 73k on the old place (plus overheads), plus a new mortgage of 117k (plus overheads). sounds like you've done this but check your scenarios are realistic.

sjlou

We looked at doing this.

As long as the mortgage companies are satisfied that you can afford the two mortgages then you shouldn't have a problem.

We looked to rent out our first home and purchase our second. So were moving forward with the purchase and a btl mortgage on the first. Within a couple of weeks we had an offer, so we decided to sell.

We were unable to tie the two transactions together (seller got a bit shirty when we asked...and threatened to pull out), so we ended up with a 3 week cross over.

The new mortgage company just had to be informed of the situation to assess our affordability with the two mortages.

Ivana_Tinkle

Is there a particular reason for doing it this way round? If it's because you need to relocate for work or something then fair enough - obviously if you just can't find a buyer for the flat then it would be a terrible idea and very risky!