We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Buying a house before selling mine
Akasha09
Posts: 7 Forumite
Hi, I probably sound really silly asking this, but I was lucky enough to be able to buy the house I have now as a cash buy, so I don't know anything about mortgages or lending.
I'm looking to downsize and free up some capital. My current property is worth around £210,000 give or take and I want to buy for around £110,000. My house isn't even on the market yet, but will be before Christmas.
If I saw a property before I sold mine and wanted to buy, would a bank give me a loan or mortgage with a view to me paying it off in full after my house was sold? Or are there any other options?
TIA for any advice
I'm looking to downsize and free up some capital. My current property is worth around £210,000 give or take and I want to buy for around £110,000. My house isn't even on the market yet, but will be before Christmas.
If I saw a property before I sold mine and wanted to buy, would a bank give me a loan or mortgage with a view to me paying it off in full after my house was sold? Or are there any other options?
TIA for any advice
0
Comments
-
It think what best suits your situation would be a bridging loan, only problem would be how long it may take to sell your house as if it took a while to sell you could find yourself paying hefty interest.
http://www.moneysupermarket.com/loans/bridging-loans-guide/0 -
Wouldn't it all just wait in a chain until you'd sold yours? Assuming you are buying your new place with 110k of the cash from your sale at 210k and leaving 100k spare. You shouldn't have to touch a mortgage... or have i mis-read you?0
-
looknohands wrote: »Wouldn't it all just wait in a chain until you'd sold yours? Assuming you are buying your new place with 110k of the cash from your sale at 210k and leaving 100k spare. You shouldn't have to touch a mortgage... or have i mis-read you?
^ This.........it's no different to being in a chain for upsizing.
However, if the OP did find a house (say one that is priced to go as the sellers are emigrating for example) then wouldn't taking a mortgage on the new house be cheaper than a bridging loan? (Having had a family member consider one recently, my eyes watered at the charges, especially if the sale takes a bit longer than expected)
The right mortgage would allow unlimited overpayments so could be dispensed with once the current house is sold. Given the values of the current and proposed house, then the 100% equity in the current house should make getting a mortgage easy.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.1K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.3K Spending & Discounts
- 247.1K Work, Benefits & Business
- 603.7K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards