What options could we have to buy a house before selling ours?

Wishywashy74

Thanks all for the comments, I'll have a chat with my partner, maybe Monday morning we instruct our agent to market both.

I was just thinking that apart from a bridging loan was there other ways of raising finance, i guess we need to see her friend who could look into options for us us as well. Maybe we just put a big deposit then get a mortgage on the new house. Then in the background we could be selling both ours then pay off the mortgage.

Atomix

Also - if you're dead set on this house, put yours on the market under so £200k and your partners £280k say? that should speed things up for you both - (if the house falls through - you can have a re-think) the last house we purchased, we sold ours £20k or so under - with the same EA. We were really keen on the house - and there was/is a shortage of large family homes in our village too.... (and with all due respect / I think you can easily afford to do this)

Wishywashy74

I guess we wait until Monday to see how things progress, my partner is hoping to get a viewing asap, if she likes it then we go from there. Appreciate the comments.

CKhalvashi

I'd suggest that either mortgaging (if this is a possibility) or bridging (more expensive buy may save you) would be the way to go here.

If your funding is dependent on both properties being sold this is likely to not work. If you have provisionally an offer for £x in the meantime where you can make up the difference and then sorting the mortgage out after completion (normally more than 6 months), this is likely to be what you'll need.

Just a side note that rates may or may not go up or down in the next 6 months, however inflation is likely to ease.

GDB2222

Martylaa said:

Thanks all for the comments, I'll have a chat with my partner, maybe Monday morning we instruct our agent to market both.

I was just thinking that apart from a bridging loan was there other ways of raising finance, i guess we need to see her friend who could look into options for us us as well. Maybe we just put a big deposit then get a mortgage on the new house. Then in the background we could be selling both ours then pay off the mortgage.

You may be able to remortgage both your present properties, so as to extract £300k equity between you. Enough so that you can pay cash for the new house. 

But, there could be significant costs with doing that, if there are ERCs for example, or you lose the benefit of a low interest rate. 

Will lenders give you a standard mortgage to buy the new house, whilst you still have existing mortgages? Definitely a question for your advisor.

housebuyer143

GDB2222 said:

Martylaa said:

Thanks all for the comments, I'll have a chat with my partner, maybe Monday morning we instruct our agent to market both.

I was just thinking that apart from a bridging loan was there other ways of raising finance, i guess we need to see her friend who could look into options for us us as well. Maybe we just put a big deposit then get a mortgage on the new house. Then in the background we could be selling both ours then pay off the mortgage.

You may be able to remortgage both your present properties, so as to extract £300k equity between you. Enough so that you can pay cash for the new house. 

But, there could be significant costs with doing that, if there are ERCs for example, or you lose the benefit of a low interest rate. 

Will lenders give you a standard mortgage to buy the new house, whilst you still have existing mortgages? Definitely a question for your advisor.

That's a good idea! You can get further advances on your current houses if there is enough equity and then buy the new one outright in cash. Avoids the expensive borrowing and then pay them off when sold and mortgage the new one if required. 
Maybe take the further advance on an ERC free tracker.

seradane

Is there a reason you need to hang onto both houses before you find the next one? Would it not make sense to try and sell one of them (whichever is less suitable for you both to live in) in the meantime, regardless of whether the next house is available or not? That way you'll be ready to jump with only one house to sell when the right house comes on the market.

However if your partner sees this house and believes it is the right one, so it's too late to do the above, then I'd suggest looking into getting a mortgage without an ERC (likely a tracker) that you are eligible for now, so the sale can complete without depending on the sale of your houses, and then you can go and pay it off once the houses are sold.