Bridging loan?

ericonabike

Slightly complicated, please bear with! We own our home, which was mortgage free until three years ago when we took out a mortgage of £80k to buy a house for our son to rent from us, costing 90k. This worked well, son is now arranging to buy his own house. We are also looking to move. We have seen a house we would love to buy, which is some £110k more than ours is valued at. We have some £50k in savings, and also have the £80k with which to pay off the mortgage.

We had hoped simply to be able to transfer the mortgage to the new house, using the £80k towards the house purchase, then sell son's old house when he moves out, using the proceeds to pay down the mortgage. The lender says this will not be possible and we cannot 'port' the mortgage. This means that we either have to wait until we have sold both houses before we can buy another [by which time we will have lost the one we want] or get some form of short-term finance to cover the 60k shortfall, to be paid back when son's house sold.

Is this a 'bridging loan' situation? If so, grateful for any advice on how it works and potential costs. And indeed for any other potential solutions.

amnblog

Why does the lender have a problem porting the £80K?

Is it because of the presence of the other property that your son lives in?

ericonabike

Not sure to be honest. Loan is solely secured on the house we live in. Our circumstances have now changed, in that we've both retired/taken early retirement since it was taken out, but joint income still in excess of £30k. And the £80k to pay it off is sitting in the offsetting account!