Help! Face losing 20K deposit.

daverave7

Hi All,

My partner and myself put a 20K deposit on an off-plan appartment 2 years ago, priced at 200K. The appartment is now built and I anticipate that the developers will ask to complete in 6 weeks time. We accepted an offer of 93K on our current property last January, but this has fallen through due to a first time buyer being refused a mortgage low down the chain. So it is back on the market but I think highly unlikely to get a sale in 6 weeks. So what are our options? Can we get a mortgage for the flat and run our existing mortgage at the same time (i.e. 2 mortgages on 2 properties)? Or can we have one large mortgage on 2 properties? Or 2 separate mortgages under 2 different names? Or I've even heard about remortgaging our current property and getting a buy to let mortgage? Do bridging loans still exist?

Our finances are as follows,

I earn 35K pa, but I have a total of 37K of debt (in CC's and graduate loan)

My partner earns 30K pa, no debt.

We have already paid 20K deposit on a 200K property.

My partner, has 40K left on her exisiting mortgage for the current property up for sale(valued at 95K - 55K Equity).

What's the best way out of this mess!? We don't want to face losing the 20K deposit on the appartment.

Many thanks for taking time to read - any help or suggestions will be much appreciated!

beingjdc

You could try remortgaging the current property and seeing if you can raise the difference through a BtL mortgage, yes. Go to a reputable mortgage advisor and put the cards on the table.

But do check current selling prices for properties of that type in that area - new builds have collapsed in some parts of the country, so if you find they're now changing hands for 150k, you can write the 20k off as a bad job and you've still saved 30k.

daverave7

beingjdc wrote: »

You could try remortgaging the current property and seeing if you can raise the difference through a BtL mortgage, yes. Go to a reputable mortgage advisor and put the cards on the table.

But do check current selling prices for properties of that type in that area - new builds have collapsed in some parts of the country, so if you find they're now changing hands for 150k, you can write the 20k off as a bad job and you've still saved 30k.

Thanks! The same build appartments with the same spec are currently on sale with various estate agents for 230K so I assume they have gone up in value.

mystic_trev

Have you exchanged contracts on the Newbuild or just put a deposit down?

daverave7

Yes, contracts have been exchanged. But not yet completed.

clutton_2

"" currently on sale with various estate agents for 230K"" does not mean they will sell for that. yes bridging loans still exist - i can recommend a very honest man of great integrity who can give you all this advice you need on this type of transaction, it is his bread and butter. if you send me your email address via private message i will send you his details

mystic_trev

Very tricky situation, particulary now with the tightening of Mortgages. I suggest you post this on the Mortgage Forum and see if any Mortgage advisers have any ideas for you.

PasturesNew

Have you tried to see if you can get a mortgage on the flat?
You'd need £180k
You have a joint salary of £65k

Although there are some debts and a current mortgage of £40k, it might still be doable.

You need to see a whole of market mortgage advisor. Or ask over on the mortgage board here.

daverave7

PasturesNew wrote: »

Have you tried to see if you can get a mortgage on the flat?
You'd need £180k
You have a joint salary of £65k

Although there are some debts and a current mortgage of £40k, it might still be doable.

You need to see a whole of market mortgage advisor. Or ask over on the mortgage board here.

Thanks - have posted this on the morgage board also.

Are we allowed to have 2 mortgages on 2 properties? or does one have to be buy to let?

Rick62

Agree with Pastures. So long as your credit is good just get a second residential mortgage at 90% to complete on the new property.

No need to mess around with BTL mortgages or, even worse, bridging finance. If however you do decide to keep the old property only then should you either need to get permission to let or to change to BTL

Rick62

Yes, you are allowed 2 mortgages.