house to house scheme

welly29

hi, does anyone know if this scheme is a good idea? I've put my house on the market in the hopes of receiving an offer so I can then put an offer in on a house I really want. As the market is slow my estate agent has suggested I could look in to the house to house scheme via their morgage adviser. The adviser isn't available till next week and I need a heads up on whether it's a good idea. My agent could only say it involved using the equity in my current home to somehow buy the new without needing a sale first. If my property continued not to sell it would then be a case of moving tennants in. it's not a buy to let and my agent stated that all the people he'd known to use it sold their original home before tennants were needed. completly ignorant about this......

nobblyned

Sounds like a bridging loan. CAn be expensive, essentially paying two mortgages until the house sells.

Why would the EA advise this? - his sommision on the loan, his chance of selling you a house and getting commission, and once you have moved it will put the pressure on you to lower your sales price as you are under a financial screw and get him his sales commission quickly also.

Take care!

welly29

:eek: Thanks v much for that, it's not sounding too attractive put like that especially as the house i want to buy is on with the very same estate agent. Unfortunately 3 couples want the same house (it's got land and relatively cheap) and with nothing selling I'm guessing he knows how to push our buttons....
In my financially confused world it sounded like buy to let also but it's good to have in confirmed
Thanks!

Doozergirl

It's not a good thing.

Bricks and mortar do not make a person happy; a huge burden of debt will very quickly make a person miserable. There will be another house along at a better time for you. The EA is doing this for no reason but their commission.

Say thanks but no thanks and concentrate on marketing your house correctly.