Buying 2nd home quick

[BGB autosport]

We have found a house and really don’t want to miss out on it, its what we want a shockingly cheap although it does need a lot of work.

We currently own our house which is worth 170k and the mortgage is 116k, this is where the problem starts, it’s not sold or even on the market so I doubt they would accept an offer from us even at the asking price (which we will happily pay).

I would like some suggestions how I can raise the funds (legally!) in a way that would mean we can proceed quickly but we can make us too skint in the event ours took awhile to sell. We have a good combined income and very good credit.

My first thinking was to go 100% only but these offers are hard to come by at the moment.

[Nolar Dog]

Where is the house?

[zcacogp]

Why is it so cheap?

(My thoughts: it may be that cheap to sell. In which case the owners will want a quick sale. In which case you may struggle, and will have to act fast ... )


Oli.

[Vron]

I'd be interested in this - my mortgage is minute (its base + 0.17 too so not going to pay it off) and I have about £200K equity. The problem is I can't sell (as in can't get anyone to buy - the house is on the market) and that's stopping me moving forward.

I can afford to keep my house and rent it out and afford to buy another. The catch is trying to get an additional mortgage - I could get a deposit together no probs for the second property.

[zcacogp]

Vron said:

I'd be interested in this - my mortgage is minute (its base + 0.17 too so not going to pay it off) and I have about £200K equity. The problem is I can't sell (as in can't get anyone to buy - the house is on the market) and that's stopping me moving forward.

I can afford to keep my house and rent it out and afford to buy another. The catch is trying to get an additional mortgage - I could get a deposit together no probs for the second property.

Or, to put it another way,

Vron said:

Oi am considerably reicher than yaew!

( Vron - no hard feelings!)


Oli.

[scotal]

Vron said:

I'd be interested in this - my mortgage is minute (its base + 0.17 too so not going to pay it off) and I have about £200K equity. The problem is I can't sell (as in can't get anyone to buy - the house is on the market) and that's stopping me moving forward.

I can afford to keep my house and rent it out and afford to buy another. The catch is trying to get an additional mortgage - I could get a deposit together no probs for the second property.

When you say the problem is that you can't get an additional mortgage, why not?

If your income will cover the mortgage on your current place plus the new mortgage, its easy. (As in very easy, especially given the lender you are with.)

If that's not the case there are other avenues (all perfectly legal and avbove board you can consider.

[scotal]

BGB autosport said:

We have found a house and really don’t want to miss out on it, its what we want a shockingly cheap although it does need a lot of work.

Is the house habitable? If not you are going to have problems securing a mortgage against it.

BGB autosport said:

My first thinking was to go 100% only but these offers are hard to come by at the moment.

Nigh on impossible in fact.
Do you have any cash at all to put into a deposit?
If not you are going to struggle to get finance to buy antoher property.

[Soir]

BGB autosport said:

We have found a house and really don’t want to miss out on it, its what we want a shockingly cheap although it does need a lot of work.

We currently own our house which is worth 170k and the mortgage is 116k, this is where the problem starts, it’s not sold or even on the market so I doubt they would accept an offer from us even at the asking price (which we will happily pay).

I would like some suggestions how I can raise the funds (legally!) in a way that would mean we can proceed quickly but we can make us too skint in the event ours took awhile to sell. We have a good combined income and very good credit.

My first thinking was to go 100% only but these offers are hard to come by at the moment.

I was in a similar positioj recently. Looked into 200k bridging loan as didnt want to lose the new house when current not even on the market. Bridging loan was around 3k interest alone. So had a re-think as no guarantee of selling your house and 3k is a huge amount. I scapped that idea. This doesnt answer your request for ideas but personally the sensible thing to do is put your house on the market asap at a lowish saleable price....if it sells, it sells. Good luck

[Vron]

zcacogp said:

Vron said:

I'd be interested in this - my mortgage is minute (its base + 0.17 too so not going to pay it off) and I have about £200K equity. The problem is I can't sell (as in can't get anyone to buy - the house is on the market) and that's stopping me moving forward.

I can afford to keep my house and rent it out and afford to buy another. The catch is trying to get an additional mortgage - I could get a deposit together no probs for the second property.

Or, to put it another way,

Vron said:

Oi am considerably reicher than yaew!

( Vron - no hard feelings!)


Oli.

It's 'cos i'm old

Thanks Scotal - will give the Woolwich another call. I get a different story depending on which operative I speak to each time I call.

[zcacogp]

Vron said:

It's 'cos i'm old

Ahhh .... as the old saying goes, youth is wasted on the young, and money wasted on the old ... !

Woolwich are notoriously rubbish at giving helpful information, or actually getting on and processing mortgages. We've recently taken out a Woolwich mortgage on a property we purchased and they were utterly, utterly rubbish to deal with. (Good rates tho'.)


Oli.

[jshell]

Vron said:

I'd be interested in this - my mortgage is minute (its base + 0.17 too so not going to pay it off) and I have about £200K equity. The problem is I can't sell (as in can't get anyone to buy - the house is on the market) and that's stopping me moving forward.

I'm not being funny, but if the house is advertised (I'm assuming it's been on a while....) and no-one is buying, then you don't 'have' £200k equity in it.....

I only mention as I've been in exactly the same position and had to take a lower offer which diminished my 'believed' equity.

[scotal]

Vron said:

zcacogp said:

Vron said:

I'd be interested in this - my mortgage is minute (its base + 0.17 too so not going to pay it off) and I have about £200K equity. The problem is I can't sell (as in can't get anyone to buy - the house is on the market) and that's stopping me moving forward.

I can afford to keep my house and rent it out and afford to buy another. The catch is trying to get an additional mortgage - I could get a deposit together no probs for the second property.

Or, to put it another way,

Vron said:

Oi am considerably reicher than yaew!

( Vron - no hard feelings!)


Oli.

It's 'cos i'm old

Thanks Scotal - will give the Woolwich another call. I get a different story depending on which operative I speak to each time I call.

You should have mail Vron, I'll run through it with you if you like.

[scotal]

zcacogp said:

We've recently taken out a Woolwich mortgage on a property we purchased and they were utterly, utterly rubbish to deal with. (Good rates tho'.)

Most of the time they are worse than that.

[BGB autosport]

Just rung up to arrange a viewing, it went on there website on friday, had two viewings saturday and two this morning. We are booked in tomorrow, but doubtfull it will still be forsale.

[zcacogp]

scotal said:

zcacogp said:

We've recently taken out a Woolwich mortgage on a property we purchased and they were utterly, utterly rubbish to deal with. (Good rates tho'.)

Most of the time they are worse than that.

They were worse than that. It's just that this is a nice thread and I didn't want to use nasty language!


Oli.

[Dr_Gonzo]

Have you thought what would happen if your house wasn't 'worth' 170k and you were forced to sell it for, say, £150k or less? With selling costs you'd have less than 40k. That would barely cover a deposit + buying costs of the other property (I assume). Add to that the fact that whatever you think it will cost to 'do up' the other property will probably be more like double the figure you've work out. And a further threat is the fact that, at some point, rate WILL go up. Looks a bit tight to me.

[Vron]

jshell said:

Vron said:

I'd be interested in this - my mortgage is minute (its base + 0.17 too so not going to pay it off) and I have about £200K equity. The problem is I can't sell (as in can't get anyone to buy - the house is on the market) and that's stopping me moving forward.

I'm not being funny, but if the house is advertised (I'm assuming it's been on a while....) and no-one is buying, then you don't 'have' £200k equity in it.....

I only mention as I've been in exactly the same position and had to take a lower offer which diminished my 'believed' equity.

True thats why I said 'about' 200K I am realistic about what I may have to take for my house . The house went on beginning of Sept, sold after 6 days then they pulled out last week deciding to go for a new build instead. In the interim when I thought mine was sold I had found somewhere I would like to buy so am looking at ways of doing it.