We've found a house we love but ours isn't selling. What are our options?

Posted on 7 September 2007

We have a flexible mortgage owing £127,000 left over 13 years monthly repayments of £1,241.00. We have had our house on the market for some months and it has not sold. We have found a property we would love to buy for £315k. What types of mortgage would you suggest?  We need to keep our costs down and would rather not pay 2 mortgages but we don't want to lose the opportunity to buy the new house we have found. We would welcome your advice. Thanks

Hi Louise,

I'm sorry to hear your property is not selling; it's horrible when you have found one you love and can't move on.

A popular option is to take the property off the market and turn it into a Buy-to-let.  You could remortgage some equity out of it to use as a deposit, and rent it out for six months or so.

I don't know your incomes but if your earnings are in excess of £110,000 you might be able to carry both loans as normal residential ones, as if the new one is a second home.  Your existing lender, could look at this for you, as could Alliance and Leicester, Salt (part of Derbyshire) and Standard Life.
 
Bridging finance is the other option; this is very expensive and again demands a lot of income to cover both debts.  Failing this, you would have to consider reducing the price of your current property to sell it. I'm sure you have considered this already and disregarded it for your own reasons but everything has a market price.  If you leave it too long, whilst it may eventually sell, it could be because the market value of average properties has increased that much.  This means that all of the properties that you want to buy will have increased as well.

Best of luck.

I hope you can find a plan that works for you.

Katie

Categories: Bridging loans, Buy-to-let, Lower mortgage payments, Second properties, Valuations, Freehold, leases & unusual property

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