Can we have 2 mortgages overlapping when selling/buying?

jbea

We have sold our house STC to first time buyers which we think will be completed within 6 weeks.

However we have found a repossessed house which we want to buy but the bank may require exchange within 3 weeks, therefore I wont be able to port my mortgage in time so I am thinking about taking on a new mortgage for the repossessed house.

Is this legal and allowed?

The 2 mortgages should only be running for approximately 3 weeks, and then I would close the original mortgage.

sirmosh

If they only require exchange you could exchange in 3 weeks then complete 3-4 weeks later?

To be honest if you don't already have a mortgage half sorted 3 weeks is still pushing it any way if you wanted it that quick.

To have two mortgages at the same time you'd need a deposit for the new property and income which could easily afford both houses to even stand a chance.

jbea

Exchanging in 3 weeks may be possible, TBH we're still waiting to find out the full time scales but I am trying to think ahead.

We dont have a second mortgage approved yet but we have been informed we can have the funds in principle.

We have a 20% deposit and ours incomes would be able to support the 2 mortgages in the short term.

I wasn't sure if we could legally hold 2 residential mortgages, or as there would only be 2 mortgages briefly then would they turn a blind eye to this?

nomoneytoday

AFAIK if you can afford 2 mortgages then the bank will lend you the money, as long as there's sufficient equity

There may be higher costs though, such as legals, setup and repayments..