Can I pay monthly for a few and then pay in full?

Notaclue32

Hi all!! Like my name suggest I have not a clue.
I am currently in a home I own (given by family member). Another home has come up that I love and is exactly what I have been looking for, however, My current home is not yet on the market.
My question is, is there a mortgage that I can get now and pay it off monthly until mine sells then pay in full? If my home sells for less can I part pay my new mortgage? Maybe all mortgages would allow me to do this, maybe none. I'm new to this and have no knowledge.
Any help would be great.

Thanks

betmunch

What you are after is bridging finance.

There are residential mortgages available that you could do this with too, but I believe if an underwriter found out the plan was to only have the mortgage for a few months they would decline the case.

Thrugelmir

Notaclue32 wrote: »

If my home sells for less can I part pay my new mortgage?

Quick answer is no.

dimbo61

You can look at offset mortgages.
When you do sell your existing property you just keep the money from the sale in the offset account.
As long as you have the deposit and income to afford the new mortgage this should be considered.
They do fixed and tracker offset mortgages.

amnblog

If you don't have any lending on your current property and have sufficient income to manage a mortgage you probably don't need the expense of a bridging loan.


You do, however (if you complete after 1st April), need to pay an extra 3% stamp duty land tax on the purchase, which you claim back when you sell your current home (assuming within 18 months).


Consult a broker.