Can I stop paying my mortgage for a few weeks until the house sale goes through?

sabitabanerji

Hi. I've accepted an offer on my house (after an earlier offer fell through at the last minute). I'm in the process of buying a flat - net result will be that I will be able to pay off my mortgage (around £95k). In order not to lose the flat, I need to pay a 2.5% deposit and rent it for 3 months. I asked my mortgage company if I could go onto interest only for that time and they said no. What would happen if I did that anyway and repaid the full amount when the house sale goes through in a few weeks' time?  I realise the risk is that this sale may fall through too... but am considering all the options.

Keep_pedalling

Sounds like a terrible plan, what happens if you find someone to rent for 3 months then they won’t move out.

mr_stripey

I would imagine that not making your contracted payments to the mortgage company is a terrible idea and probably only the action of very last resort.

Flugelhorn

are you renting the flat to live in - then buying it? or buying it and letting it to someone else ?

amnblog

Sounds like you a considering a route that will trash your credit file. Not smart

MWT

sabitabanerji said:

Hi. I've accepted an offer on my house (after an earlier offer fell through at the last minute).

An accepted offer is pretty meaningless until you at the very least, exchange so they are under contract.

I wouldn't be proceeding with a purchase on that basis...

I'm currently helping my father-in-law sell his bungalow, no shortage of full-price offers, but until one of them is actually able to proceed to exchange and completion there is no certainty with any of them...

FlorayG

Why do you need to rent the flat? If you are buying it can't you just buy it and move in? This doesn't make sense.
Unless you mean rent it OUT for 3 months...don't do that

MWT

FlorayG said:

Why do you need to rent the flat? If you are buying it can't you just buy it and move in? This doesn't make sense.
Unless you mean rent it OUT for 3 months...don't do that

I would expect it is part of a deal to extend the completion date...

Renting gives the current owner the funds to cover the mortgage payments until they complete.

Not unheard of if this is an ex-rental property being purchased.

sabitabanerji

Thanks all. I'm renting the flat for myself until I am ready to purchase it - ie, until the sale of my house goes through. I've tried every channel I can think of to raise the funds I'd need to cover my mortgage, the rent and the deposit but my mortgage company said no unless I ported the mortgage rather than paying it off (which kind of defeats the object), bridging loans are for a minimum of £50k, personal loans don't cover porperty purchases or even rental deposits apparently... I've just looked into putting the house on Airbnb but there are so many regulations that it would not be worth it. Any advice that anyone can give me would be very welcome! Do I just have to accept that I will lose the flat I'm trying to purchase?

housebuyer143

Can you get a credit card and use it to pay the rent/mortgage for a few months? I'm not sure if you can but an option? 
Otherwise, trash your credit record and just don't pay. They won't repo it right away, but it's not ideal.

No19v87

housebuyer143 said:

Can you get a credit card and use it to pay the rent/mortgage for a few months? I'm not sure if you can but an option? 
Otherwise, trash your credit record and just don't pay. They won't repo it right away, but it's not ideal.

May be wrong but I believe mortgage companies do not allow payments on credit cards.