Getting a mortgage while I already have one
Discussion
Calling our faithful mortgage brokers on PH.
I've just about to put my name down for a new build property which won't complete until june next year, but which I need to exchange in November this year.
My current property is on the market, but not sold yet. If it hasn't sold by November am I screwed? Because I assume I will need a mortgage offer in place at some point and I'm not sure if the mortgage companies will take into account that when I actually complete I will be mortgage free, or will they go worse case until I sell my house and assume I will have two propertiesd to fund?
p.s. Anybody want to help me get a mortgage, feel free to email me
I've just about to put my name down for a new build property which won't complete until june next year, but which I need to exchange in November this year.
My current property is on the market, but not sold yet. If it hasn't sold by November am I screwed? Because I assume I will need a mortgage offer in place at some point and I'm not sure if the mortgage companies will take into account that when I actually complete I will be mortgage free, or will they go worse case until I sell my house and assume I will have two propertiesd to fund?
p.s. Anybody want to help me get a mortgage, feel free to email me
When I moved house, I still had my old place and the mortgage on it. the fix i used was to get a buy to let mort on the new place. I still got a decent 2 year fixed rate and I have the added complication of being paid mainly in quarterly dividends with a low salary..
As it was in the end the old place went quite quickly and I only had the two running for one months payments...
As it was in the end the old place went quite quickly and I only had the two running for one months payments...
trooperiziz said:
Calling our faithful mortgage brokers on PH.
I've just about to put my name down for a new build property which won't complete until june next year, but which I need to exchange in November this year.
My current property is on the market, but not sold yet. If it hasn't sold by November am I screwed? Because I assume I will need a mortgage offer in place at some point and I'm not sure if the mortgage companies will take into account that when I actually complete I will be mortgage free, or will they go worse case until I sell my house and assume I will have two propertiesd to fund?
p.s. Anybody want to help me get a mortgage, feel free to email me
You dont have to have an offer in place to exchange on a new build, but you would be daft to put yourself in that position. I've just about to put my name down for a new build property which won't complete until june next year, but which I need to exchange in November this year.
My current property is on the market, but not sold yet. If it hasn't sold by November am I screwed? Because I assume I will need a mortgage offer in place at some point and I'm not sure if the mortgage companies will take into account that when I actually complete I will be mortgage free, or will they go worse case until I sell my house and assume I will have two propertiesd to fund?
p.s. Anybody want to help me get a mortgage, feel free to email me
As Burba says if you can demonstrate affordability for both mortgages then you will be fine, if however you cant the lenders may insert a clause whereby they will not let you complete on their mortgage until the current one is redeemed. Mortgage lenders will often look at worse case scenarios, i.e they assume you will end up owning two properties.
You could also arrange to port your current mortgage to the new property. However that may have its own drawbacks, it all depends what scheme you have in place, and when you expect to complete the sale of your current home.
Depending on the build etc, some lenders are also restricting the level of borrowing they will allow on new builds.
As already stated you can have more than one mortgage at once.
I did this so as to snap up a bargain and to also make my house effectively vacant possesion. I did it when I had a sale agreed.
It dropped out and it took me 6 months to get another buyer at a lower price. Ended up having mearly 600k worth of mortgage running for 5 months longer than I'd anticpated.
Just saying, if you commit to the mortgage and complete without your house being sold, just be prepared for the worst case of your buyer dropping out.
It hurts.... a lot.
JC
I did this so as to snap up a bargain and to also make my house effectively vacant possesion. I did it when I had a sale agreed.
It dropped out and it took me 6 months to get another buyer at a lower price. Ended up having mearly 600k worth of mortgage running for 5 months longer than I'd anticpated.
Just saying, if you commit to the mortgage and complete without your house being sold, just be prepared for the worst case of your buyer dropping out.
It hurts.... a lot.
JC
jconsta6 said:
As already stated you can have more than one mortgage at once.
I did this so as to snap up a bargain and to also make my house effectively vacant possesion. I did it when I had a sale agreed.
It dropped out and it took me 6 months to get another buyer at a lower price. Ended up having mearly 600k worth of mortgage running for 5 months longer than I'd anticpated.
Just saying, if you commit to the mortgage and complete without your house being sold, just be prepared for the worst case of your buyer dropping out.
It hurts.... a lot.
JC
Aye, I could cover the cost of both mortgages if necessary, but it certianly wouldn't be comfortable during that period! I did this so as to snap up a bargain and to also make my house effectively vacant possesion. I did it when I had a sale agreed.
It dropped out and it took me 6 months to get another buyer at a lower price. Ended up having mearly 600k worth of mortgage running for 5 months longer than I'd anticpated.
Just saying, if you commit to the mortgage and complete without your house being sold, just be prepared for the worst case of your buyer dropping out.
It hurts.... a lot.
JC
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