Financing a new house

[Nuclear Biscuit]

We are looking to downsize from our current house (that we currently own outright) to a house in Scotland. Because of the differing systems and that fact that some work is still underway on the current house, it is possible that the house we are looking at would need to be bought before we have sold this one. Because of the work being carried out, there is enough spare cash to fund the move only. I reckon on three months overlap maximum between purchase and sale.

I am investigating ways of borrowing on a short term basis the money for the new house. I've looked at remortgaging the current house but although we could easily service the mortgage, we don't have the income to get the sum required. Are there any other options other than a massively expensive bridging loan?

The current house is worth £550k, new house is £325k. Grateful for any advice!

[FailHere]

Any family or friends who could help out with finance? Most lenders don't like short term mortgages and if you could find one to cover your few months they would charge way over the odds for the privilege. What you really need is someone who will buy your existing house and let you stay as short term tenants; more feasible is to sell and move into rented or stay with friends/relations.

[Nuclear Biscuit]

Thanks. I think we have to accept we may lose this house if timescales don't work. The other plan is to complete early here and stay with family for a few days.

[TheLordJohn]

I'm going to do what everyone else does on these topics - speak to Sarnie!!

[sampsan]

When in this position on my last house move, I took a mortgage on the new place with minimum charges and redemption fees (if any) and when I sold my old house paid the mortgage off. Think I had a mortgage for 3 months so worked out well.

[Nuclear Biscuit]

It's not so easy getting a large mortgage now; there are loads of FCA affordability checks you have to pass. We don't have the income to pass the test for a mortgage of this size even though at current interest rates and those likely over the next few months it would be a doddle. Maximum LTV on the new place they would allow is 80%, which means we need a £65k deposit we also don't have. just to add to the fun I'm self-employed