How can I buy the house I want, before I've sold my current one?

Posted on 24 June 2013 by Adam

How can I buy the house I want, before I've sold my current one?

I currently own a property that is about to go on sale. It is valued by the Estate Agent for £349k. I have an existing mortgage of £232k. I have found a property that I wish to put an offer on for £725k. I have £50k in savings and circa £118k in equity on the house if it sells at that value. I'm an IT Contractor on £675 p/day and from a specialist broker can obtain a mortgage for the new property. What is the best way to finance the house I wish to purchase before my current house is sold? My house is up for sale. Any advice would be greatly appreciated. I Would consider short-term financing. Look forward to hearing from you.


You could look to try and do a 'Let To Buy', whereby you remortgage and capital raise your existing property onto a Buy To Let mortgage, and then add the additional funds raised to the rest of your deposit monies and then take out a new residential mortgage for the balance.

Most Buy To Let lenders cap their borrowing at 75% which if your property is vauled at £350,000 doesn't leave a lot of room to manouvre, bearing in mind the existing loan of £232,000. There are a few lenders who go slightly higher to around 80% but the Also the lending decision is partly based on the amount of rental income generated by your current property. With the amount you'd be able to release through the Let to Buy, if the property values up at £349,000 less legal fees, tamp duty, etc...n it's likely we'd be looking for a new residential mortgage in the region of 85% - 90%.  

On the information so far supplied I think that this is feasible, though because of the loan to values involved the actual lenders we could go to will be limited.

It may be that you would be better advised to put your current home on the market at a slightly reduced price to encourage a quick sale.

If you'd like to talk in more detail reagrding your enquiry, then please let me know, and I'll arrange a suitable time for one of our consultants to contact you.



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