Is this do-able? Advice needed please :)

scoff_2

Posting on behalf of a family member, so figures are estimated.

The situation is - a couple with one child have been living in a house worth 80k, no mortgage as property was an inheritance, house not yet on the market. The couple fall in love with a house worth 150k, and really, really want to buy this house. There is no upward chain on the house they want to buy, and they feel they need to make a move quickly as property in the surrounding streets appears to be selling quickly.

What would be their next move? Would the EA selling the property they wanted to buy be prepared to put forward an offer from them in these circumstances do you think? Would a bridging loan be available?

Any advice very much appreciated

Doozergirl

Bridging is very expensive and would only be suitable for a very short period of time. If they have the income multiples I suppose they could take out a larger mortage that would allow them to overpay it significantly by the amount from the sale

It is always simply better to get your house on the market before you look and not make any offers until you have one yourself. This would certainly be the moneysaving thing to do. I can promise that there will be another house along soon. If you can fall in love with one house quickly, it won't take long to find another.

Debt_Free_Chick

scoff wrote: »

Would the EA selling the property they wanted to buy be prepared to put forward an offer from them in these circumstances do you think?

If they make an offer, then the EA must put this to the vendor. Doubtless, they will also tell the vendor that you have a property to sell, which is not yet on the market. It is then down to the vendor to decide what to do. They might accept the offer and wait - but they might also keep the property on the market and see if a buyer in a better position comes along.

Either way, they have some work to do - need to get the property presentable and on the market - pronto!

scoff_2

Thanks for your replies - much appreciated

Do you think that (even though it is not a good idea) it would be possible to get a bridging loan for the new property?

Debt_Free_Chick

Can they afford it - on top of their mortgage?

And for how long?

And what if interest rates go up?