Moving house mortgage advise

kungfuman

Hi, I'm looking for some advice regarding mortgages for my situation.

Me and my wife are looking to move house. Our current flat is mortgaged, valued at £125k. The original mortgage amount was £75k over 35years taken out at 2007 with the Nationwide. But the remaining amount is only £7k as I've overpaid my mortgage payments the last few years and we are no longer tied into a deal.

We have seen a house that we like but the current owner is looking to move very quickly within 4-6 weeks as he has to start a new job. He has offered the property at an attractive price that we're keen to deal on. Only thing is I'm not sure if we can sell the place we have in that time frame so I'm wondering if its possible to get a mortgage that would cover both property's or be looking at a bridging loan of some form for the short term.

My original plan was to sell the existing place to use as a deposit for the new place. Therefore if i dont sell in time, is its possible to reclaim the overpayments I've made on my existing mortgage (which would account to 25% of the new place) or remortgage on a flexible deal and use that as a deposit for the new place and then apply for a new mortgage for the new place for the remaining amount? This would mean we will have two mortgages on two places until I sell our old place and repay the mortgage on that.

The value of the new property is £225k. Our combined income is £75k and we have a clean credit history with no outstanding debts.

I'm planning to speak to a broker this Monday but any advice in the meantime is appreciated.

hildosaver

You could try a 'let to buy' mortgage. Let out your current flat, put down as big a deposit as you can on the new house then in the next year or two you can sell the flat, and overpay your new mortgage down from the proceeds, or indeed just keep the flat let and use the income to overpay the house mortgage.

It depends obviously if you have cash available to put down a deposit immediately without selling the flat, but it might be a way to move forward on getting a mortgage on the new house without having the pressure to sell the flat in a short time frame.

TrickyDicky101

My Nationwide mortgage (taken out in 2005) comes with a borrow back facility whereby I can withdraw overpayments. I know Nationwide has withdrawn this feature in its more recent mortgages, but I believe they still offered this in 2007. You can either check your original mortgage documentation or ask the Nationwide yourself.

kingstreet

Overpayment re-draw is available on mortgages taken out before 4 March 2010, so it is possible to re-borrow the overpayments, using this as the deposit for the property.

kungfuman

Thanks for the replies. I managed to speak to Nationwide today about the mortgage, quite surprising considering its a Sunday.

They've confirmed what you guys have said about borrowing back my over payments. Will need to send my request in writing but shouldn't take more than a week to get the funds back. Just need to see about getting a new mortgage for the new place now.

Yorkie1

Please click 'spam' on Vonda's post - 10 identical posts promoting the same book.