Moving house...or not

[SteveScooby]

I'm after a bit of advice if possible please.

We put our house up for sale in February, and almost immediately accepted an offer on it for nearly the full asking price. We were hoping to exchange in the next couple of weeks, but our buyer has now decided to pull out.

We're keen not to miss out on the house we've had an offer accepted on.

As far as I can tell we've got 2 options;
1) Put ours back on the market, hope it sells quickly and that our vendor doesn't get fed up of waiting
2) Loan from parents for deposit for new house and convert current mortgage to buy to let and rent it out.

Rough figures for context;
Current house value £210k
Mortgage £135k
New house price £260k

Are there any other options available?

Thanks

[LeoSayer]

Another option is a bridging loan to make sure you can still buy the new house if the old one doesn't sell in time.

[fat80b]

SteveScooby said:

2) Loan from parents for deposit for new house and convert current mortgage to buy to let and rent it out.

Don't forget the additional 3% stamp duty for a second home and that not all lenders will be happy with a buy to let property in the background at certain borrowing levels.

We are going through this at the moment - In our case, we are doing the parents thing and looking to sell as soon after we complete on the new place although if it doesn't sell, we will continue with the BTL plan for a a few years.

Bob

[covmutley]

I did option 2 thanks to the in-laws when our sale fell through twice and we didnt want to lose the house we were buying.

Our house value and mortgage was almost the same as yours, although our new house is (scarily) a lot more.

Our mortgage chap found an interest only BTL mortgage (nottingham BS) which was quite a high percentage but with an early repayment charge of only about 400 quid.

Didnt rent it out however. Kept it on the market and luckily found a buyer quickly and sold after only about 2 mortgage payments which was circa 700 total.

I took the view that even if it took 6 months to sell, 2-3k of mortgage payments was not a lot in the grand scheme of things. Saved the bother of renting and meant we could pay the in-laws back quickly.

Edited by covmutley on Thursday 25th May 14:53

Edited by covmutley on Thursday 25th May 14:54

[KTF]

Why not put it back on the market today and see what interest the agent can drum up over the bank holiday weekend?

The vendor will probably be in the same position as you in so far as they dont want to lose the sale so an extra few weeks may not matter.

[SteveScooby]

Thanks all, it's back on the market and we've got a viewing booked for tomorrow already, so fingers crossed!

[VTECMatt]

Same happened to us on Monday, day before exchange. I would love to sue them for time wasting.