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Needing to purchase new home without selling current

Zackisback878
Posts: 53 Forumite

Hi All, looking for some advice with the following please!
Lived in my current property for 4 years (purchased for £105,000) with an outstanding mortgage of £43,000 left. I also own my first flat i bought with a current realistic value of £50,000 (unmortgaged but unfortunately also never going to sell - may look to rent out soon)
We've had our current property on the market for 2 weeks now, went with estate agents expertise and priced at offers over £110,000 (although they were pushing for £120,000 - home report value is £120,000) . However, we have now reduced this to offers over £99,950 due to little interest (2 viewers only - both loved it but not proceedable) with the hope of getting £105,000 back. Happy with this as i've not made any major home improvements over the 4 year period.
Now this is where it gets complicated....I am almost 5 months pregnant and myself and partner have had an offer accepted on our dream house (£155,000) but the vendors quite rightly want to see some progress on selling our own within the following 4 weeks.
Its looking likely that we will need to look down the route of financing the new property with still having the current one listed for sale, which in Scotland will leave us liable for LBTT. I am just clueless on a mortgage provider's view on this. We will have the equity of the flat i own outright and the equity of around £60,000 in my current home. My mum had mentioned a bridging loan does anyone have any experience of these? cant find much credible info online
Would a mortgage provider give us one residential mortgage covering both homes as we have a good bit of equity ?
Our vendors of the house we have offered on seem quite flexible on their move out date but they are keen on end of April, which would likely give us time to sell our current, but we do not want to lose it and keen to explore all options to give them the confidence we can proceed without selling ours, if its at all possible!
Sorry the post is very long winded its a stressful time and any advice would be most appreciated
Our current combined salary is £55,000
No adverse credit (both paid off credit cards recently)
Lived in my current property for 4 years (purchased for £105,000) with an outstanding mortgage of £43,000 left. I also own my first flat i bought with a current realistic value of £50,000 (unmortgaged but unfortunately also never going to sell - may look to rent out soon)
We've had our current property on the market for 2 weeks now, went with estate agents expertise and priced at offers over £110,000 (although they were pushing for £120,000 - home report value is £120,000) . However, we have now reduced this to offers over £99,950 due to little interest (2 viewers only - both loved it but not proceedable) with the hope of getting £105,000 back. Happy with this as i've not made any major home improvements over the 4 year period.
Now this is where it gets complicated....I am almost 5 months pregnant and myself and partner have had an offer accepted on our dream house (£155,000) but the vendors quite rightly want to see some progress on selling our own within the following 4 weeks.
Its looking likely that we will need to look down the route of financing the new property with still having the current one listed for sale, which in Scotland will leave us liable for LBTT. I am just clueless on a mortgage provider's view on this. We will have the equity of the flat i own outright and the equity of around £60,000 in my current home. My mum had mentioned a bridging loan does anyone have any experience of these? cant find much credible info online

Would a mortgage provider give us one residential mortgage covering both homes as we have a good bit of equity ?
Our vendors of the house we have offered on seem quite flexible on their move out date but they are keen on end of April, which would likely give us time to sell our current, but we do not want to lose it and keen to explore all options to give them the confidence we can proceed without selling ours, if its at all possible!
Sorry the post is very long winded its a stressful time and any advice would be most appreciated
Our current combined salary is £55,000
No adverse credit (both paid off credit cards recently)
0
Comments
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Mortgage lender - only if you can afford to have both mortgages running. Can't tell from your post how much you actually need to borrow for the new place.
Open-ended bridging - expensive and difficult to obtain these days. "Closed" bridging (i.e. where you've already concluded missives and have a known overlap period between buying and selling) is a bit more reasonable.
Dream house - bit daft to find one before you've sold. There'll be others if you can't persuade current sellers to hold on for you.0 -
Have you tried to get a mortgage with the minimum deposit, is it affordable to you?
I would try and get the shortest fix with the largest amount allowable for over payments without getting charged. Make the maximum over payments when you other property sells, or put the money in premium bonds until the fix is up and pay that in and remortgage.0 -
thanks for the reply
For the new home we wont have any deposit if we cant sell the current asap, only equity of around £110,000 and a £43,000 mortgage outstanding
Agreed - its more about the timing and the house than the house itself, with April move in I'd be 7 months pregnant which would be perfect but yes agree not ideal to find before selling ours!
I've made an appointment with Santander (current provider) to see our options but it does seem like the chances of a bridging loan would be unattainable and expensive
thanks again0 -
Thanks Foxy
I've made an appointment for Wednesday, Santander said in an initial meeting they would lend us £278,000 but that was providing a deposit of £60,000 from the sale of ours which hasnt happened as yet.
I've run the stats through an online calculator with the higher mortgage factoring in not having ours sold and the payments are fine and within budget.
With taking out a larger mortgage and paying off a lump sum of £60,000 when our current home does eventually sell would we be penalised/disadvantaged in any way ?0 -
Zackisback878 wrote: »With taking out a larger mortgage and paying off a lump sum of £60,000 when our current home does eventually sell would we be penalised/disadvantaged in any way ?0
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Congrats on your pregnancy. What's the relevance to moving though?0
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Hi,
Would it be worth just dropping your asking by another 5k to see if you can get a buyer straight away and avoid all the hassle?
Tlc
Edit: it can be a real block to think of selling for less than you paid but if it allows you to move on..0 -
My former neighbours did a bridging loan for a property in france 3 years ago while they tried to sell here. They listed at £300k (far too much £265k i valued their property at) and they ended up selling for £237500 8 months later because the costs were really stacking up managing two properties and expensive bridging loans.When using the housing forum please use the sticky threads for valuable information.0
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David- Thanks will make sure when we meet with Santander we won’t be penalised if we do it that way
Joe- just needing the extra space now.
Tlc- We’ve priced it at offers over £99,950 with the home report value of £120,000 but we could certainly drop 5k, would a fixed price be more attractive possibly?
Tom- thanks for the advice, i think the bridging loan option might need to come off the table0 -
Thanks joe:j just needing another bedroom now with baby on way0
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