Can I make an offer without one on mine?

sarahj.perkins

Hi,
I currently have a flat on the market but have not had much interest in it. We desperately need to move and have at least 10% deposit for the new property. We were going to rent out the property and was approved for having the two mortgages but decided to sell as didn't want the burden or responsibility. Can we start looking at properties? We can afford the two mortgages until it sells.

Thanks for any help or advice

Sarah

Dan-Dan

If you can afford both mortgages and have the deposit, then yes

pinkteapot

You can't have two normal residential mortgages at once (lenders won't do it), but you have two options if you can afford repayments:

1) Bridging finance - these are loans specifically for instances where you buy a new place before selling your old one. The interest rates are higher than on the average mortgage though.

2) Change the mortgage on your flat to let to buy (as you would if you were going to rent it out) and then keep trying to sell it after you've left. This was suggested to me when I looked into bridging finance and I was surprised that the lender would let you get away with taking out a let to buy mortgage with no intention of letting it out! You'd have to investigate more - I don't know if the lender would want you to have a tenant lined up before you complete, or if let to buy mortgages have big redemption penalties in the first few years (in which case it could end up being more expensive than bridging finance).

Offers will be taken seriously if you're proceedable - i.e. if you've got a buyer lined up or if your purchase isn't dependent on your sale.

If you can afford bridging finance, you need to ask about it on the mortgages board or, better yet, get advice from a good mortgage broker who can help you with it.

Beige

Agents will show you properties and you can make an offer without your house being under offer (but the vendor will probably count it against you).

You may be able to afford two mortgage repayments, but in order to get another mortgage you'll need another deposit and to be able to pass the affordability checks (which will take into account the existing mortgage).

kingstreet

If you have a lender willing to accept a 90% application for a second property with another mortgage in the background, there is nothing to stop you making offers and agreeing a new purchase.

You are termed a "non-dependent" buyer, as your purchase is not dependent on the sale of your current home.

pinkteapot

kingstreet knows better than me - I might have been wrong when I said you can't have two normal mortgages at once.

eddddy

sarahj.perkins wrote: »

Hi,
I currently have a flat on the market but have not had much interest in it. We desperately need to move and have at least 10% deposit for the new property. We were going to rent out the property and was approved for having the two mortgages but decided to sell as didn't want the burden or responsibility. Can we start looking at properties? We can afford the two mortgages until it sells.

Thanks for any help or advice

Sarah

Hi Sarah

Realistically, if you're not getting much interest in your flat, you'll probably need to reduce the price to sell it. So take this into account in your calculations.

If you opt for two mortgages, you will probably need a high LTV and/or you may have to deal with 'specialist' (expensive) LTB lenders. So you may end up paying high fees and be lumbered with an expensive mortgage on your new home.

You may find that it's quicker and easier to significantly drop the price of your flat, to achieve a quick sale. Then you will have a big deposit for your next place, meaning you can get a good (cheap) mortgage.

The hit you take on your sale price could be cancelled out to a great extent by the savings you make on fees, mortgage interest etc.

kingstreet

pinkteapot wrote: »

kingstreet knows better than me - I might have been wrong when I said you can't have two normal mortgages at once.

You were, but don't worry about it.

If you can afford them, you can have as many residential mortgages as you can afford.

We're doing one at the moment for someone buying a flat near to where they work, as their family home is a few hundred miles away.

moneyistooshorttomention

Probably depends a bit on what part of the country you are looking in.

I have recently moved from a fairly fast-paced part of the country to a noticeably slower-paced part.

With that...I put in a provisional offer on the one I had decided on and it was accepted on that basis and found my own buyer a few weeks later.

Though that did lead to vendors EA phoning up angling for a bit more money at one point. I gave it to them and it was "swings and roundabouts" - as in there is a few thousand £s worth of work here the vendor carefully didn't mention:mad:, so I'm not sure if it was worth it or no to pay that extra v. the local grapevine tells me that local people who definitely wanted this house came along after me and were more than a little disappointed I had verboten further viewings, and they weren't allowed through the front door as a consequence, when I found the EA/vendor were still trying to "market" it to some extent AFTER my firm offer had been definitely accepted on the other hand (as my own buyer was in place by then). So I might have lost the place to these people if I hadn't paid up that bit extra...