Two house with equity - to one outright purchase

paulkd44

We have to move into a single house with aged parents.

We have found a house to buy and what we will realise from the sale of our home and the pareants home is way in excess of the new property purhcase. The thing is we want to do the deal now - care in our current small home is very difficult. We have pensions and benefits as our income so can't obtain bridging finance. We need someone to take our homes as collateral on an advance on the new property, then to recover the advance and a fee from selling the two properties. Anyone any ideas?

user1977

That's bridging finance, which you've already ruled out…are you sure there is nothing available? I've dealt with some sub-prime lenders in the past. It won't be cheap though.

DE_612183

There are some companies that will buy your home - but my guess is that they will offer +10% under the market value.

Is the type of house you need rare - so the one you have found is the only one you have in your mind?

You may be able to sell your houses quickly but completion will probably take a few months whichever way you go.

I'd just get the properties up for sale asap

Brie

We did this but purchase of the new place was contingent on selling both the old ones which meant that there was a small mortgage that was ok as I was still working at the time.

Have you considered trying getting a mortgage, possibly through an adviser? They seem to do better on unusual cases. If this worked you'd be likely to get a lower interest rate and could see if overpaying would be an option to clear the mortgage asap when the house(s) sell.

user1977

Have you considered trying getting a mortgage, possibly through an adviser?

Any "normal" mortgage lender will ask whether you're trying to sell the property, and understandably be much less interested when you answer yes.

silvercar

Why can’t you take a bridging loan secured on the current homes? You will then clear the bridging loan when you sell one or both. You need to see a broker for this.

BungalowBel

We took out a £100k mortgage when we bought our bungalow, so that the purchase didn't depend upon the sale of our house. We only had Pension income. We got it through a mortgage broker, told him we would pay off the loan when we sold the house, and he got us a mortgage not available on the open market with Midshires.#

We then paid it off when we sold the house.

This was ten years ago.