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  • FIRST POST
    • Spraymanuk
    • By Spraymanuk 11th Feb 18, 3:59 PM
    • 2Posts
    • 1Thanks
    Spraymanuk
    Help buying a new home before selling
    • #1
    • 11th Feb 18, 3:59 PM
    Help buying a new home before selling 11th Feb 18 at 3:59 PM
    Hi first time posting for me so hi everyone.
    I am after some advice here.
    Currently we have a house (in the East Midlands) which is Mortgage free As we paid it off a few years ago. It is an older property and itís value is circa £275K.
    We are desperate to move house but we know that to give it kerb appeal we need to get painted and tarted up inside and out.
    We also know that it wont sell quickly. Thought it is a nice house.
    Anyway as I say we would like to buy another house for around £400K, which would give us time to move out (I have a double garage with part built car, machine tools etc) and then leave the house empty for the decorators to work there magic.

    What options do I have here? I can afford to but down a 15% deposit on the new house and then pay back a big lump sum when our house sells, leaving a smaller mortgage. I am in my mid 50s and have a very good salary. Checking mortgage tools states they would allow up to a £375K mortgage if needed.
    What are the implications of what I am proposing here. Anything I have missed?

    Any advice would be welcomed.
    Last edited by Spraymanuk; 11-02-2018 at 4:02 PM.
Page 1
    • Pixie5740
    • By Pixie5740 11th Feb 18, 4:10 PM
    • 11,930 Posts
    • 16,799 Thanks
    Pixie5740
    • #2
    • 11th Feb 18, 4:10 PM
    • #2
    • 11th Feb 18, 4:10 PM
    Hi first time posting for me so hi everyone.
    I am after some advice here.
    Currently we have a house (in the East Midlands) which is Mortgage free As we paid it off a few years ago. It is an older property and itís value is circa £275K.
    We are desperate to move house but we know that to give it kerb appeal we need to get painted and tarted up inside and out.
    We also know that it wont sell quickly. Thought it is a nice house.
    Anyway as I say we would like to buy another house for around £400K, which would give us time to move out (I have a double garage with part built car, machine tools etc) and then leave the house empty for the decorators to work there magic.

    What options do I have here? I can afford to but down a 15% deposit on the new house and then pay back a big lump sum when our house sells, leaving a smaller mortgage. I am in my mid 50s and have a very good salary. Checking mortgage tools states they would allow up to a £375K mortgage if needed.
    What are the implications of what I am proposing here. Anything I have missed?

    Any advice would be welcomed.
    Originally posted by Spraymanuk
    You will need to pay the higher rate of SDLT on the new purchase so for a £400k property that will be £22,000. The good news is that if your current home sells within 3 years you will be able to claim the extra £12,000 back from HMRC.

    If you are intending to make a large lump sum payment during the initial term of your new mortgage look for one without ERC and/or engage an independent mortgage broker to find one for you.
    • Mutton Geoff
    • By Mutton Geoff 11th Feb 18, 4:12 PM
    • 1,117 Posts
    • 1,201 Thanks
    Mutton Geoff
    • #3
    • 11th Feb 18, 4:12 PM
    • #3
    • 11th Feb 18, 4:12 PM
    Hi first time posting for me so hi everyone.
    I am after some advice here.
    Currently we have a house (in the East Midlands) which is Mortgage free As we paid it off a few years ago. It is an older property and itís value is circa £275K.
    We are desperate to move house but we know that to give it kerb appeal we need to get painted and tarted up inside and out.
    We also know that it wont sell quickly. Thought it is a nice house.
    Anyway as I say we would like to buy another house for around £400K, which would give us time to move out (I have a double garage with part built car, machine tools etc) and then leave the house empty for the decorators to work there magic.

    What options do I have here? I can afford to but down a 15% deposit on the new house and then pay back a big lump sum when our house sells, leaving a smaller mortgage. I am in my mid 50s and have a very good salary. Checking mortgage tools states they would allow up to a £375K mortgage if needed.
    What are the implications of what I am proposing here. Anything I have missed?

    Any advice would be welcomed.
    Originally posted by Spraymanuk

    Speak to a broker to get a better idea of what you can borrow to bridge the purchase. If you can get interest only so much the better as repayments are currently around £110 per month per £100k of borrowing.

    I found the online tools rubbish once you reach a certain age and "off piste" situations.


    Work out your additional costs, the costs of decorating, the cost of a year long void on the empty house, the (much higher) insurance costs on empty property. Knock all that off your anticipated selling price and get it sold promptly to someone looking for a bargain they can do up themselves to their own taste (it is unlikely you will be investing in decent quality if you are "tarting up" to sell).


    People always imagine they can do things cheaper than they really cost so £20k off could get you a purchaser quickly and save a whole lot of headache.
    Compensations/Refunds from Banks & Institutions - £4,165 | Stooz Profits - £7,636 | Quidco - £4,014

    All with a big thank you to Martin and MSE.com from Mutton Geoff!
    • kingstreet
    • By kingstreet 11th Feb 18, 5:53 PM
    • 33,194 Posts
    • 17,929 Thanks
    kingstreet
    • #4
    • 11th Feb 18, 5:53 PM
    • #4
    • 11th Feb 18, 5:53 PM
    If you can get interest only so much the better
    Originally posted by Mutton Geoff
    85% interest only?

    Anyone I might know offering that?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • dimbo61
    • By dimbo61 11th Feb 18, 6:41 PM
    • 9,848 Posts
    • 5,295 Thanks
    dimbo61
    • #5
    • 11th Feb 18, 6:41 PM
    • #5
    • 11th Feb 18, 6:41 PM
    Consider offset mortgage if you go down the buy the new property before selling the old one route
    • agrinnall
    • By agrinnall 11th Feb 18, 7:14 PM
    • 19,941 Posts
    • 15,657 Thanks
    agrinnall
    • #6
    • 11th Feb 18, 7:14 PM
    • #6
    • 11th Feb 18, 7:14 PM
    I'd just price the house to sell quickly as it is and get rid of it in time to move to the new one.
    • Spraymanuk
    • By Spraymanuk 11th Feb 18, 8:16 PM
    • 2 Posts
    • 1 Thanks
    Spraymanuk
    • #7
    • 11th Feb 18, 8:16 PM
    • #7
    • 11th Feb 18, 8:16 PM
    Thank you all for your replies and advice. It is very clear that I need a good Mortgage Broker. How do I go about finding a good reputable one.

    Regards
    • Mutton Geoff
    • By Mutton Geoff 11th Feb 18, 10:02 PM
    • 1,117 Posts
    • 1,201 Thanks
    Mutton Geoff
    • #8
    • 11th Feb 18, 10:02 PM
    • #8
    • 11th Feb 18, 10:02 PM
    Thank you all for your replies and advice. It is very clear that I need a good Mortgage Broker. How do I go about finding a good reputable one.

    Regards
    Originally posted by Spraymanuk
    https://www.unbiased.co.uk/
    Compensations/Refunds from Banks & Institutions - £4,165 | Stooz Profits - £7,636 | Quidco - £4,014

    All with a big thank you to Martin and MSE.com from Mutton Geoff!
    • spendinglikemad
    • By spendinglikemad 12th Feb 18, 9:03 AM
    • 280 Posts
    • 1,614 Thanks
    spendinglikemad
    • #9
    • 12th Feb 18, 9:03 AM
    • #9
    • 12th Feb 18, 9:03 AM
    Hi first time posting for me so hi everyone.
    I am after some advice here.
    Currently we have a house (in the East Midlands) which is Mortgage free As we paid it off a few years ago. It is an older property and itís value is circa £275K.
    We are desperate to move house but we know that to give it kerb appeal we need to get painted and tarted up inside and out.
    We also know that it wont sell quickly. Thought it is a nice house.
    Anyway as I say we would like to buy another house for around £400K, which would give us time to move out (I have a double garage with part built car, machine tools etc) and then leave the house empty for the decorators to work there magic.

    What options do I have here? I can afford to but down a 15% deposit on the new house and then pay back a big lump sum when our house sells, leaving a smaller mortgage. I am in my mid 50s and have a very good salary. Checking mortgage tools states they would allow up to a £375K mortgage if needed.
    What are the implications of what I am proposing here. Anything I have missed?

    Any advice would be welcomed.
    Originally posted by Spraymanuk
    Very similar situation to us - we are a year on from that......our previous house (no mortgage) had been on the market and not sold and meanwhile a house that we were very interested in and didn't want to lose out on, went for sale on modern auction. We had talked to the estate agent and decided to see if we could make a bid which we did and we got a mortgage broker involved to release the capital from our current house to use as a deposit (changed to an interest free BTL mortgage) and then took out our new house mortgage. It was tense for a couple of weeks until all the finances were sorted but it worked out for us. We had the extra stamp duty to pay (so £32k rather than £16k which we had calculated into our decision - but then we knew we would be able to claim this back within 3 years of selling our house and now the house is sold subject to contract and exchanging soon.

    Now the downside which you may or may not be caught out on......we were planning to do the same as you as we wanted to do some renovations and move gradually when we had completed .....however the BTL arrangement meant that we could not live there even temporarily when we converted the mortgage so we moved "most" of our stuff and then spent the next months emptying the loft and garage (2 cars mid renovation, and years of metalwork projects and tools........)

    So it can be done - we were lucky as we are on very good salaries and had worked hard to pay off our previous mortgage, it was tense taking on a big mortgage but we will work hard to get that down ASAP and it has given us an amazing property that instantly felt like ours which was double the size with an amazing garden in an ideal position (our old house even though we lived there 19 years it never felt like home so it was meant to be!)

    Other cost wise our savings have soon been depleted moving into an old house by upgrading heating, adding fireplaces/stoves/electrics and unexpected issues so don't forget to work out all your new costs (inc council tax and bills assuming you are moving into a bigger place)

    Oh and lastly, we had to take out landlords insurance as our old house being a BTL (even though we had no intention of letting out)

    Hope that helps

    SLM
    Family of 4 plus cat & pup!
    • Mutton Geoff
    • By Mutton Geoff 12th Feb 18, 1:23 PM
    • 1,117 Posts
    • 1,201 Thanks
    Mutton Geoff
    Oh and lastly, we had to take out landlords insurance as our old house being a BTL (even though we had no intention of letting out)
    Originally posted by spendinglikemad

    Are you sure you're covered for a long vacant period with no effort to get the house occupied. I think a claim might be met with rejection if you were discovered doing this. You need FLEA insurance, not landlords insurance in this situation.
    Compensations/Refunds from Banks & Institutions - £4,165 | Stooz Profits - £7,636 | Quidco - £4,014

    All with a big thank you to Martin and MSE.com from Mutton Geoff!
    • spendinglikemad
    • By spendinglikemad 12th Feb 18, 1:44 PM
    • 280 Posts
    • 1,614 Thanks
    spendinglikemad
    Are you sure you're covered for a long vacant period with no effort to get the house occupied. I think a claim might be met with rejection if you were discovered doing this. You need FLEA insurance, not landlords insurance in this situation.
    Originally posted by Mutton Geoff
    Yes - we are covered thanks I checked with the insurers

    SLM
    Family of 4 plus cat & pup!
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