creative mortgage advice / bridging loan?

[Shoestringracer]

Mrs Shoestring and I have seen a house we want to buy and have put our house on the market. We have an excellent rate at the moment (base rate +.23) for the life of the mortgage. We have cash from the sale of Mrs Shoestring's house and this, added to the money sale from our current house means that we will not need to increase our borrowings to buy the new house.

However, our current house is unusual and may take a long time to sell and we don't want to loose out on the "new" house. We have a large enough disposable income that we could, in the short term, pay two or even three of our current mortgage quite easily.

Obviously, in an ideal world we will sell our house today but is there any way we could buy the new house without selling the old one first?

Thanks

[scotal]

If you have a deposit, and can afford to cover both mortgages (In the lenders eyes, not what you think you can afford) there is no reason why you can't have 2 residential mortgages.

All comes down to making the numbers fit.

[Sarnie]

scotal said:

can afford to cover both mortgages (In the lenders eyes, not what you think you can afford)

This is the key.

It's not what you think you can afford, it's what the lender deems that you can afford, which can be two entirely different things.

[anonymous-user]

Check if you can port your existing mortgage, if so, port it (and the good rate) to your new house, whilst simultaneously remortgaging your existing property to a buy-to-let mortgage (if enough equity in it), that way if it doesn't sell you can rent it out.

ETA I'd go for a mortgage with no ERCs/tie-ins on the house for sale, so if you do get an offer you can sell without penalty, but still have the option to rent it out, with some houses being on the market for years instead of months you could get a nice rental income and feel secure that it's not vacant longt term.

Edited by anonymous-user on Tuesday 25th October 09:33