Soldato
- Joined
- 29 Dec 2004
- Posts
- 17,072
- Location
- Shepley
I'm struggling to find an answer to this. We have c£150k of equity built up in our current house but are looking to move in the near future and have found a place we really like and would like to make an offer. Our house is not on the market yet but we would expect it to sell very quickly based on recent experience of our neighbours. We accept that this is a bit of cart before horse situation and makes us unattractive to sellers.
I did wonder if an option would be to fund the deposit on the new place by additional borrowing on our existing mortgage which we would then look to repay once the sale of our place goes through. This seemed like a cheaper option than a bridging loan and would take the chain out of the equation.
The key things seemed to be making sure our total borrowing was less than our affordability ceiling, and that the additional borrowing on our current place didn't make our mortgage here exceed 85% LTV. We would be OK on both counts.
I'm guessing there is a reason this isn't possible so please poke holes in it.
I did wonder if an option would be to fund the deposit on the new place by additional borrowing on our existing mortgage which we would then look to repay once the sale of our place goes through. This seemed like a cheaper option than a bridging loan and would take the chain out of the equation.
The key things seemed to be making sure our total borrowing was less than our affordability ceiling, and that the additional borrowing on our current place didn't make our mortgage here exceed 85% LTV. We would be OK on both counts.
I'm guessing there is a reason this isn't possible so please poke holes in it.