[Finance] Mortgage advice wanted

Garage_Doors · May 22, 2021

Looking to move house for the first time in over 25 years and things have changed in that time.
Seems now you have to have an offer on your property before estate agents will let you view those for sale.
When we bought this place it was two years from start to completion due to buyers & sellers in the chain dropping out.
We want to see what is available to before we commit to selling ours, no point selling if we can’t find a suitable replacement.
Will a lender give me a short term mortgage so can I purchase the new home and then repay it once I have sold the old home?

Know there used to be a mortgage guy on here?

Seasider78 · May 22, 2021

Unless something has changed since lockdown you have always been able to view houses for sale but many estate agents and buyers often do not accept offers on their property until you have one on your own.

sams dad · May 22, 2021

I think that is known as a bridging loan, usually comes with a higher interest rate than a mortgage,.
Uncle Spielberg is the man to talk to.

Emily's Mum · May 22, 2021

Have you got a cash deposit to put down on a new home or will you need some of the equity in your existing home as the deposit?

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Tom Hark Preston Park · May 22, 2021

Garage_Doors said:
Looking to move house for the first time in over 25 years and things have changed in that time.
Seems now you have to have an offer on your property before estate agents will let you view those for sale.
When we bought this place it was two years from start to completion due to buyers & sellers in the chain dropping out.
We want to see what is available to before we commit to selling ours, no point selling if we can’t find a suitable replacement.
Will a lender give me a short term mortgage so can I purchase the new home and then repay it once I have sold the old home?

Know there used to be a mortgage guy on here?

[MENTION=3887]Uncle Spielberg[/MENTION]'s your man :thumbsup:

Garage_Doors · May 22, 2021

Yes could raise approx 15% cash deposit of the value of the new property.

drew · May 22, 2021

Seasider78 said:
Unless something has changed since lockdown you have always been able to view houses for sale but many estate agents and buyers often do not accept offers on their property until you have one on your own.

My sister in law moved recently and the Estate Agents would only allow viewings if you had an offer on your property. Of course, you can always be economical with the truth!!!

Paulie Gualtieri · May 22, 2021

Garage_Doors said:
Looking to move house for the first time in over 25 years and things have changed in that time.
Seems now you have to have an offer on your property before estate agents will let you view those for sale.
When we bought this place it was two years from start to completion due to buyers & sellers in the chain dropping out.
We want to see what is available to before we commit to selling ours, no point selling if we can’t find a suitable replacement.
Will a lender give me a short term mortgage so can I purchase the new home and then repay it once I have sold the old home?

Know there used to be a mortgage guy on here?

You could take a bridging loan (short term mortgage up to 12 months) to prevent a chain break.

Typically they go up to 70% LTV and current rates are at 0.48 to 0.55 a month, no early repayment charge.

You could secure 100% of your purchase price on the new property on the basis the provider would take a charge both on your current and new residence.

Lender would expect your house (the exit of redeeming your loan) to be on the market promptly.

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nwgull · May 22, 2021

I can’t see the point of mortgage brokers these days. So easy to search for best deals on the internet.

Gazwag · May 22, 2021

drew said:
My sister in law moved recently and the Estate Agents would only allow viewings if you had an offer on your property. Of course, you can always be economical with the truth!!!

My daughter's been trying to sell her flat since last August and had this problem during the last lockdown

dazzer6666 · May 22, 2021

drew said:
My sister in law moved recently and the Estate Agents would only allow viewings if you had an offer on your property. Of course, you can always be economical with the truth!!!

This is more to do with Covid than anything else - ie 'essential' viewings only

Elbow750 · May 22, 2021

I haven't moved in 25 years, but my daughter did recently and a fews at work have too. It can be a right pain in the butt.

Be prepared for slow solicitors, searches that take ages, numerous demands for double glazing guarantees, complete boiler service history, including copies of all the annual inspections. Buyers change their mind, sellers want more money and some buying gits demand money off on the day of exchange or they pull out. My advice is make sure you really want to move before committing to what can be 2 years of hassle, and a lot of expense. Also most houses will need some work, plumbing, kitchen, wiring, boiler. You know what your future expenses will be, so be careful to factor in what the next house will need. unless its been rewired in the last 5 years its bound to need the Fuse box upgrading. Modern boilers can give up after 10 years, the list goes on.

As others have said, you should easily be able to view houses but most agents won't take any offers until your house has an offer on it, or is at least being very actively marketed. When I last moved I made the decision I was going, decorated and smartend it right up, cleaned the windows before viewing and put it on at a realistic price which was lower than the agent suggested. That showed her I was serious, and I got an offer close to that price within two viewings. Once I had that offer, I was selling and even if it meant having no where to buy I would have stayed with relatives, or rented.

I'd always advise against a bridging loan. They can be very expensive (£300,000 at 0.55 % a month is £1,650 a month) and you can rent for that. Being in rented means you are in a very strong position to buy when the right house comes up.

I found the house I bought quite quickly and the rest was history.

Good luck

mwrpoole · May 22, 2021

I had the same problem. I think it’s a COVID thing to minimise contact etc.

I got round it by saying I was looking to buy as a ‘buy to let’ so nothing to sell. It would have been the worst BTL ever but they didn’t question it.

Uncle Spielberg · May 22, 2021

You need a mortgage with no early redemption penalties. Happy to help if you pm me. The comments re seeing best deals, yes you can do that but it does not mean you can get that deal or know every lenders criteria

Live by the sea · May 22, 2021

Property is selling very fast at the moment so if you are not under offer on your own property, unless you are a cash buyer or want to risk a bridging loan , it’s likely you will miss out .

drew · May 22, 2021

dazzer6666 said:
This is more to do with Covid than anything else - ie 'essential' viewings only

You mean that pandemic thing that's still around?

thedonkeycentrehalf · May 22, 2021

Elbow750 said:
I haven't moved in 25 years, but my daughter did recently and a fews at work have too. It can be a right pain in the butt.

Be prepared for slow solicitors, searches that take ages, numerous demands for double glazing guarantees, complete boiler service history, including copies of all the annual inspections. Buyers change their mind, sellers want more money and some buying gits demand money off on the day of exchange or they pull out. My advice is make sure you really want to move before committing to what can be 2 years of hassle, and a lot of expense. Also most houses will need some work, plumbing, kitchen, wiring, boiler. You know what your future expenses will be, so be careful to factor in what the next house will need. unless its been rewired in the last 5 years its bound to need the Fuse box upgrading. Modern boilers can give up after 10 years, the list goes on.

As others have said, you should easily be able to view houses but most agents won't take any offers until your house has an offer on it, or is at least being very actively marketed. When I last moved I made the decision I was going, decorated and smartend it right up, cleaned the windows before viewing and put it on at a realistic price which was lower than the agent suggested. That showed her I was serious, and I got an offer close to that price within two viewings. Once I had that offer, I was selling and even if it meant having no where to buy I would have stayed with relatives, or rented.

I'd always advise against a bridging loan. They can be very expensive (£300,000 at 0.55 % a month is £1,650 a month) and you can rent for that. Being in rented means you are in a very strong position to buy when the right house comes up.

I found the house I bought quite quickly and the rest was history.

Good luck

We are in the process of moving after 23 years so I understand your concerns and things have definitely changed.

From my recent experience there are two parts to the story about not getting viewings unless you are a first time buyer or have a buyer for your existing house. The first is to reduce COVID risks of people going into the houses unnecessarily. Many agents now provide these 3D viewers which give you a better idea of the property to help with that part. The second is that in many cases, there is so much demand that the agent doesn't want to waste their time or yours as they are unlikely to recommend to a buyer that your offer is accepted if you have yet to sell your current place as others are better placed to take the sale forward.

We had sold in less than a week and above our expected price but again, this depends on what and where you are selling. Older family houses with large rooms and gardens like ours are very popular at the moment.

Elbow is right about the paper work demands - there seems to be a lot more emphasis on warranties, safety certificates etc for everything.

We have been lucky as our solicitor does most things online and has been very quick in turning things around - even the agent we are buying through has said he was impresses at how much he has been pushed by our solicitor.

We had to pull out of one purchase as the seller couldn't find anything and had stopped communicating but were luck we then found a vacant place. This is moving at great pace - we had the offer accepted after the last bank holiday and are on track to move in before the end of next month. The searches in my area are coming back quite quickly but this isn't the case in all areas.

Good luck!

Garage_Doors · May 22, 2021

Uncle Spielberg said:
You need a mortgage with no early redemption penalties. Happy to help if you pm me. The comments re seeing best deals, yes you can do that but it does not mean you can get that deal or know every lenders criteria

You have exceeded your storage quota, perhaps you can message me once you cleared some space

Springal · May 23, 2021

Agents not allowing viewings if you’re not under offer is to do with the market. It is moving extremely quickly so there is no point viewing if you cannot make an offer there and then.

Parents put theirs up, with an open house 5 days later. 11 viewings, 3 offers, bidding war went £13k over listing price (or £45k more than one agent wanted to list at!)

No point viewing if you can’t seriously offer there and then

zefarelly · May 23, 2021

drew said:
My sister in law moved recently and the Estate Agents would only allow viewings if you had an offer on your property. Of course, you can always be economical with the truth!!!

Estate agents generally are, so seems like a fair deal to me

The market is mental at the moment, being is a poisiton to buy and buy fast is good, but selling up first is a tough decision. . .

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