How is affordability calculated before selling?

Newheight13

Hi,

I have seen a a few posts where people buy before they sell their main residence for a number of reasons. How does affordability work as you would have a mortgage on 2 properties for a few months, and of course maybe longer? Would it be treated as you would need to be able to afford both loans for the typical 25 years for argument sake? 

Thanks 

 

CSI_Yorkshire

Pretty much, yes.

As you say, there is no guarantee that the first property will ever be sold.

Brie

Yes - you have to be able to prove you could afford both mortgages.  There's no guarantee that the "old" place will sell, whether that's due to the market or someone changing their mind.  No different than have a main residence and a holiday home really.

ACG

It sort of varies from lender to lender, but generally it will either be:
The mortgage payment goes down as an expense and has a similar effect to what a loan would with the same repayment OR, the mortgage payment goes down as an expense as does the running costs (gas, electric, council tax). 

housebuyer143

Some people doing this don't have a mortgage on the first one, so they would just get a normal mortgage on the new one and the old place isn't taken into account.