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any advice
coffee
Posts: 8 Forumite
hi everyone looking for any advice if possible............everything was going well we had a buyer for our house and had an offer on the house we hoped to buy........happy days .got a phone call today from solicitor today to say that the couple who had the offer on our house have just had their mortgage pulled....ahhhhhhhhhh this leaves me 90 000 short to purchase new property.......any ideas could i get a buy to let mortgage on my original home to fund the new purchase and then rent it out already have a couple interested:eek::eek::eek::eek::eek::eek:
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Presuming you mean the mortgage outstanding on your house is £90k, then this would have an interest of around £490/month. For a BTL, you would probably need at least 130% of interest on loan, so it would need to rent it at £640/month. How much are similar homes renting out for? (look on rightmove.co.uk).
You'd then still need a suitable deposit to buy this other house. Cash in the bank???
Unless you HAVE to move, it might be an idea to stay put, or try selling again.Should've = Should HAVE (not 'of')
Would've = Would HAVE (not 'of')
No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)0 -
the home i am selling is mortgage free and i was getting the 90000 for the sale0
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How much is the property you were purchasing? How was it being funded other than the £90,000 from your sale? Were you selling for £90,000 or more? If we have maths, we can help a bit better.Everything that is supposed to be in heaven is already here on earth.
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new purchase 170 000 made up from 90 000 house sale 75 000 new halifax mortgage 5 000 cash0
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mortgage company pulled out last minute.......... booooooooo0
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new purchase 170 000 made up from 90 000 house sale 75 000 new halifax mortgage 5 000 cash
so instead of having a £95k deposit and a £75k mortgage, you now need a £165k mortgage, and only have a 3% deposit.
Your only option would be to re-mortgage your current house and let it out (making sure the rent was at least 1.3x the interest on the mortgage, preferably more than the repayment mortgage!), then use the money from the re-mortgage as a deposit on the new house. How much would your property let for??
With the current credit crunch and restrictions on lending, the above option is perhaps unlikely, so your best option is to put your house back on the market.Should've = Should HAVE (not 'of')
Would've = Would HAVE (not 'of')
No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)0 -
I'd put your house back on the market really. Unless the rent you can get is very good; only BTL for business reasons, not because something else failed.
You can make it up the money if you can get higher income multiples than that £75,000. You'll need at least 15% equity kept in your existing property if you want to remortgage on a BTL.
Or speak to the EA and find out if your buyers could see a whole of market broker to try and fix their mortgage situation.Everything that is supposed to be in heaven is already here on earth.
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All depends how suitable your current property is for renting.
For the maths, you are proably looking at something like 70k BTL mortgage (providing the rent more than covers this) and taking a residential mortgage of 95k if your income can jsutify this.
Depends how desparate you are for the house.
We did something similar in 2006. Our buyer's buyer's buyer dropped out, so we bought our new home and the house at the bottom of the chain.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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