what kind of mortgage

[neil-c]

I intend employing the services of a mortgage advisor but before I meet him just wanted to get opinions and suggestions.

We are currently mortgage free. However due to a recent family addition we need a bigger place. Our fortunate position has allowed us to have an offer accepted on a larger property. What went greatly in our favour was that we offered on the basis that we could complete without having to complete our sale first. That said we want to sell our place asap. What mortgage products would be best for us in this position?

Our scenario could be
a - buy new place on 85 - 90% LTV and old place languishes on the market for longer than expected.
b - buy new place on 85 - 90% LTV and old place sells when we have completed therefore have a large lump sump to put into mortgage asap
c - old place sells quickly and only require a 30% LTV mortgage (very doubtful that timescales make this possible)

IS there a mortgage flexible enough for this. Also want a fixed rate for at least the first year

[Maryben]

Your scenario is:
A: You are paying a premium on higher an interest rate at 85% - 90% LTV but this could be offset by not having to accept a low offer made on yours.
B: Mortgages are not very flexible at this time. If you require the security of a fixed rate there will be heavy redemption penalties when you make a lump sum repayment of more than 10%.
C: At this low low LTV you will get the lowest rates but doubtful you will sell within the timescale agreed on a 'non dependent sale' purchase.
Ben

[Sarnie]

neil-c said:

I intend employing the services of a mortgage advisor but before I meet him just wanted to get opinions and suggestions.

We are currently mortgage free. However due to a recent family addition we need a bigger place. Our fortunate position has allowed us to have an offer accepted on a larger property. What went greatly in our favour was that we offered on the basis that we could complete without having to complete our sale first. That said we want to sell our place asap. What mortgage products would be best for us in this position?

Our scenario could be
a - buy new place on 85 - 90% LTV and old place languishes on the market for longer than expected.
b - buy new place on 85 - 90% LTV and old place sells when we have completed therefore have a large lump sump to put into mortgage asap
c - old place sells quickly and only require a 30% LTV mortgage (very doubtful that timescales make this possible)

IS there a mortgage flexible enough for this. Also want a fixed rate for at least the first year

Option B is where you are likely to end up. Generally, at 85% LTV you won't have much scope for specifying a product with no ERC's, or the ones that will do it will be directly onto their SVR at circa 5.68%+

However, last week I did an 85% purchase at 3.69% with no ERC's which would be ideal for you in this scenario as you would benefit from the lower rate and also can reduce the balance without limitations, as and when your properties sells.

Drop me a PM if you would like some help with this

[mcflurry]

In a similar scenario, my BiL remortaged his "old" house on a tracker with no ERC.
This was then the deposit for the "new" house, and with the old mortgage then being paid off after the sale went through.

[neil-c]

After speaking to a mortgage advisor I think we intend scraping together enough to get a 85% LTV offset on the new place. Hopefully only spend a short time with effectively two properties then using the proceeds from the sale of current property to offset. I'm sure some of the funds will be useful over the next couple of years to sort out any issues (or improve my new detached double garage!!)

The advisor did look at ways of remortgaging old place so he ended up with two mortgages around 60% LTV but we felt the offset way was "cleaner" for us.

[TomOSmith]

I went with Yorkshire Building Society who do a fixed rate offset mortgage. Bought new house with mortgage, tidied up old house to sell, sold and paid down the mortgage. Much better than bridging finance.