Unsure of next move

chocaholicmanc

Morning all

My OH and I are in the process of selling his house and buying a house together. We found the house we wanted quite quickly and, as houses in our area sell so quick, my mum lent us the deposit difference so we could go ahead with the purchase before we sold his current house.

Purchase of new house is progressing nicely (no chain) so that at least is good.

However; we haven't yet sold his current house and are unlikely to now it is leading up to xmas. We always anticipated we would have to pay 2 mortgages for a while and whilst we can afford it, we're looking for ways to reduce the cost.

He did not remo when his fixed deal ended 2 years ago as we were looking to buy/sell fairly soon (obviously didn't happen!) so he is paying a higher interest rate. He has spoken to current mortgage provider (I cannot remember who this is; Nottingham perhaps?) and they will not move him to an interest only or do any kind of deal for him (no missed payments, etc).

He has also spoken to a couple of other providers who would not look to offer any kind of mortgage as the property is likely to be unoccupied from mid-December onwards.

Does anyone have any suggestions? Obviously we're hopeful that the property will sell after xmas but if we could save a bit of money before then, it would help us to kit out the new house!

We don't want to rent it out (we need the equity) and even if we did want to, we don't have a big enough LTV for a BTL mortgage. We also need to take all the furniture to the new house so even if the mortgage company would let us do it on a short term basis, it wouldn't be feasible as it would be unfurnished and I doubt many people would want a short term let with no furniture!

Any help appreciated.

Thanks

ACG

You might be able to do some sort of secured or bridging loan against it.

Most of these loans prefer to be second charges, so providing you leave say £5k on the existing mortgage it should fit.

Bridging loans are not cheap (1-2% fees plus interest of around 0.6-1% per month) but they roll up the monthly interest meaning no monthly repayments. Typically can be in place for 12 months.
Alternatively a secured loan as a second charge could be interest only. But again interest rates/fees would be in a similar area.

They would help to reduce your monthly outgoings but most likely cost more in the long run.

chocaholicmanc

Thanks for the advice ACG. We'll look at that!