getting a mortgage without selling our current house first

sugarplum_fairy

My husband and i have just finished paying off the mortgage on our current house, we are considering buying a new house for £165,000, but we are having difficulties selling our current house, as we have no mortgage would it be possible to get a mortgage for the new house without selling our old house first? Our joint income is £45,000 and we are both in our 40s

[Deleted User]

I am not an expert, but my understanding would be is that it would depend on what level of deposit you have to put towards the new house purchase.

kingstreet

What do you intend to do with the current property and if you are selling it, how will you fund the deposit for the new purchase while your current property remains unsold?

sugarplum_fairy

Hi, that's really the issue. We don't have any ready funds for a deposit. So what I'm hoping to find out if rather than being in the same boat as a first time buyer, is there a way that owning our current property puts us in a better position?

It's been so long since we took out a mortgage that I'm just looking to understand how it all works now. Would we need a bridging loan, or is that not an option.

Would we partially re-mortgage our current property to place a deposit on the one we want to buy?

hcb42

what you are asking for is a 100% mortgage, which don't exist any more. An open ended bridging loan is dangerous territory, if you could even get it. Is an £165K loan even affordable for you on £45K between you, as presumably in your 40s you wouldnt want too long a mortgage term (unless you want to keep paying it in your late 60s? It would be better to just sell first..?

sugarplum_fairy

Hi thanks,

I realise that 165k is a lot based on our income and a 165k mortgage isn't really what I'm getting at as ultimately the funds from the sale of the current house would be paid against the loan and in total, I would think, pay down about 50%.

But would my other suggestion of re-mortgage to release some of the value of our current house be a possibility? I'm just trying to understand if this is possible but maybe defeats the object as having this other mortgage could count against us in terms of applying for a mortgage on the new house?

As an aside, what typically would be the kind of maximum mortgage we could get based on our income? It used to be work out like 3x the higher income and 1.5x the lower. I don't see anyone using these terms anymore, so how is it done?

Thanks

Dave_Ham

Hi there,

If your intention is to let out your current home, then there will be options.

Many people in their 40's-50's are finding themselves as accidental landlords for the same sort of reasons as yourselves.

If you did look at this, you would raise a deposit as a let to buy and use this towards your ongoing mortgage.

All the best