How do bridging loans work?

panichousebuyer

Our problem started because we moved at the wrong time originally. We were in the process of moving when our eldest daughters primary forms had to be in. She was allocated a place at the school near our old house and because the catchment school we were going to is always extremely oversubscribed we couldn't appeal as she wouldn't have got in anyway. The only time we could try and get her in was in year 3 when classes are allowed to exceed 30 pupils, by which time her younger sister was attending school and was in year 1. She is now in year 5, younger sister in year 3, so they could both be moved but my son is only in year 1. Hence she has now had the same friends for six years and wants to carry on with them to secondary school, therefore we need to move asap. Like I said before we should have moved last year and then we wouldn't be in this predicament, but hindsight is a wonderful thing!

Yes they have changed catchment slightly, but for us unfortunately it has worsened. Increased catchment size to include part of the city which always seems to end up getting its own way and sod the rest of us!

panichousebuyer

Know that you are right PasturesNew.

I suppose when it comes to your children's happiness though you are prepared to do anything!

PasturesNew

panichousebuyer wrote: »

Know that you are right PasturesNew.

I suppose when it comes to your children's happiness though you are prepared to do anything!

These are alien concepts to me, so I can't comment.
I am a single, childless hermit.

panichousebuyer

PasturesNew wrote: »

These are alien concepts to me, so I can't comment.
I am a single, childless hermit.

You sound like my brother - Mark is that really you:rotfl:

panichousebuyer

Just wanted to say thank you to everyone your advice has been really helpful!

Shrimp_Stu

There is always the option for you to rent out your current home and purchase the other house in your desired catchment area, without the need to sell first.

If your current home can be rented out so that the rent covers all your current mortgage repayments then this wouldnt effect your available borrowing, as this would be self financing. So your mortgage borrower will allow you to borrow £x amount to buy your new home. If your achievable rent can not cover your mortgage repayments then you can still take out another mortgage but obviously the amount you can borrow will be affected by the shortfall between the rent and your current mortgage.
I am currently considering this, and my brother was able to move house last year by having two mortgages concurrently one on his old house (rented out) and one on his new purchase. Speak to a mortgage adviser about all your options.

panichousebuyer

Shrimp_Stu wrote: »

There is always the option for you to rent out your current home and purchase the other house in your desired catchment area, without the need to sell first.

If your current home can be rented out so that the rent covers all your current mortgage repayments then this wouldnt effect your available borrowing, as this would be self financing. So your mortgage borrower will allow you to borrow £x amount to buy your new home. If your achievable rent can not cover your mortgage repayments then you can still take out another mortgage but obviously the amount you can borrow will be affected by the shortfall between the rent and your current mortgage.
I am currently considering this, and my brother was able to move house last year by having two mortgages concurrently one on his old house (rented out) and one on his new purchase. Speak to a mortgage adviser about all your options.

So we change our mortgage to a buy to let and then get a second mortgage for the new house. If we did this can we still have the house up for sale while we have tenants in here and if so what do you do about viewings etc?

How long does it take to do this and also is it more likely that if you have an AST (I think it is called) and the house is up for sale that it would put rentors off your property?

Doozergirl

Yes tenants won't be best pleased if the house is for sale and if you are trying to sell your house it's appeal is greatly reduced and if you get tenants in and then put the house for sale, your tenants are likely to give you notice as soon as you can blink.

Tenanting a house is not the way to sell it.

This two house malarky is just such a risk and it's for all the wrong reasons. Please, you'd be taking far less financial risk if you let your house and rented somewhere else. You don't want to expose yourself to more debt than you need to.

Kez100

After all of this, are you guaranteed a place at the chosen school if you live in the catchment? What are the chances of still being disappointed because the school is oversubscribed with catchment children? Have you checked that out.

panichousebuyer

Unfortunately, I don't think you are ever guaranteed a place whatever your catchment. If there were too many children for the places in catchment then it would be children with siblings, medical problems and then distance from school to home obviously closest first.

Catchment, however, is the surest guarantee you can have. Not in catchment, not a hope in hell!!!

Going back to the tenanting thing, even if you let for the short term without the house being up for sale, there has to come a point where you have to end up paying two mortgages then (without the extra rental income that is), if you want to sell it.